Socio-Economic Determinants of Green Growth: A Case of Selective South Asian Economies

Abstract

The study investigates impact of several macroeconomics factors on green growth in India, Pakistan, Bangladesh, Nepal, and Bhutan from the year 2000 to 2023. Considering that the region is vulnerable to environmental issues and improvement in development, the study includes GDP per capita, the HDI, and CO₂ emission as a part of GNI. GDP per capita growth, enrollment in secondary education, use of renewable energy, trade openness, and quality of government are the independent variables, and these data were mostly found at the World Bank and World Governance Indicators. The analysis with panel data and robust standard errors found that a better education system and strong governance cause green growth. Meanwhile, the growth of the economy is negatively linked to the use of renewable energy, and this may result from using traditional biomass. Open trade does not make a visible difference in the region’s green growth. According to the results, both human capital and institutional quality are very important for countries to reach sustainable development. It points out that plans should be made using policies that ensure relevant environmental and governance practices are in place to support inclusive and lasting economic growth across South Asia.