The Role Of Renewable Energy In Poverty Reduction And Environmental Improvement
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Date
2018-02
Authors
Subramaniam, Yogeeswari
Journal Title
Journal ISSN
Volume Title
Publisher
Universiti Sains Malaysia
Abstract
Commonly, a good environmental quality will lead to an economic growth where at the very least environment will supply natural resources to produce goods and services. Therefore, a good environment will be essential for the sustainable economic growth. Nonetheless, for most of developing countries in the world, poverty has been the main feature where poor people may overexploit the environment resources to fulfill their needs. Hence, the present study investigates the effect of poverty on environmental deterioration using panel data of 52 developing countries. Utilizing the Generalized Method of Moments (GMM) estimation technique, our findings establish that poverty is the primary sources of environmental damage across the countries. As part of the potential solution to this issue, this study also attempts to examine the effect of renewable energy in mitigating the adverse effect of poverty on environmental deterioration. Adopting the panel data analysis, the paper discovers evidence that the presence of renewable energy tends to minimize the adverse effect of poverty on environmental degradation. Therefore, the efforts to reduce environmental degradation must be comprehensive enough and the priority of policies on the environment should, in the first place, target poverty reduction. For that reason, adoption and promotion of renewable energy as well as investment in other environmentally friendly technologies can mitigate the extent of destruction that poverty can have on the environment.
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Keywords
Renewable energy in poverty reduction , and environmental improvement