Renewable Energy Use, Real GDP, and Human Development Index in Bangladesh: Evidence from Simultaneous Equation Model
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This paper tries to seek out the correlation between renewable energy use, real GDP, and HDI in addition to trade openness, urbanization, and environmental aspects in the case of Bangladesh during the phase of 1990-2015. In persuasion of the objective, time-series data of the given period is analyzed by means of the 2SLS approach. We also apply the VECM Granger causality technique in order to find the underlying relationship between the given variables. Findings of the study suggest that real GDP, CO2 emissions, and use of renewable energy have positive consequences on the human development index while trade liberalization and urbanization have insignificant impacts on it. The study finds renewable energy use improves human development processes. Therefore, the government should emphasize on renewable energy production and the use of renewable energy.
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