Green Energy Strategies and Their Effect on Natural Resource Sustainability in Pakistan

Abstract

This study explores the impact of green energy strategies on natural resource sustainability in Pakistan, utilizing data from 1999 to 2022 and applying the ARDL estimation technique. The primary focus is on understanding how renewable energy consumption and production influence natural resource rents. Empirical results indicate a complex relationship: renewable energy consumption is negatively correlated with natural resource rents, suggesting that increased consumption of renewable energy may reduce the exploitation of natural resources. Conversely, renewable energy production shows a positive correlation with natural resource rents, implying that boosting renewable energy production can enhance the value derived from natural resources. These findings underscore the dual role of renewable energy in promoting sustainability. On the consumption side, a shift towards renewables can alleviate pressure on natural resources, fostering long-term ecological balance. On the production side, investing in renewable energy infrastructure appears to complement the efficient use of natural resources, potentially increasing economic rents. Policymakers should encourage renewable energy consumption through incentives and subsidies, reducing dependence on non-renewable resources and mitigating environmental degradation.