Exploring the Causal Relationship Between Renewable Energy, Non-renewable Energy and Human Development in Saarc Region: A Pathway to Sustainable Development

In the developing world, with the increase in Carbon Dioxide emissions and energy demand, Renewable Energy has become one of the key factors driving sustainable human development. Many of the South Asian Association of Regional Cooperation (SAARC) countries still heavily depend on non-renewable energy which limits sustainable development. This study analyzes the causal relationship between Renewable Energy consumption, Non-renewable Energy Consumption, and the Human Development Index in the SAARC regional countries. The critical literature review across Environmental Science, Economics, Engineering, and Social Sciences provided valuable insights and theoretical foundations for the study. Using the secondary data obtained, Econometric modeling is used to measure causal relationships using the Granger causality Wald Test and examine how renewable energy consumption and non-renewable energy consumption impact human development index across the SAARC Region. In addition, the Wavelet coherent technique is used to identify both short-term and long-term relationships between these variables. Moreover, our research evaluates policy recommendations that can be used to improve renewable energy consumption in the case of human development. Ultimately, our research goal is to contribute to the broader area of sustainability and development by showing the potential of renewable energy in increasing human development in the SAARC Region.