Renewable Energy Transition and Sustainable Growth in South Asia: Insights from the CO2 Emissions Policy Threshold

This paper investigates the nonlinear/asymmetric effects of renewable energy transition on sustainable growth in South Asian countries using panel data from 2000 to 2023. The paper utilized a panel threshold regression approach as an empirical strategy. The findings revealed that the renewable energy transition can promote sustainable growth in South Asian countries. The findings also found a significant threshold effect of CO2 emissions 2.38% critical mass, in the nexus between renewable energy transition and sustainable economic growth in South Asian countries. Furthermore, the study revealed complementary threshold effects of access to clean energy and the innovation and urbanization thresholds of 3.37% and 3.21% respectively, in the nexus between renewable energy transition and sustainable economic growth, respectively. Further investigations revealed that the connection between renewable energy transition can significantly drive sustainable development goals (SDGs-8) in South Asian countries.