Impact of Energy Consumption on Environmental Quality in Asian Countries: An Econometric Analysis

Abstract

This study examined the impact of energy consumption on environmental quality across Asian economies using panel data from 2000 to 2023. The analysis applied Quantile Regression to explore how renewable energy consumption and nonrenewable energy consumption influence environmental indicators, including CO₂ emissions and ecological footprints. Results revealed that renewable energy consumption significantly reduced environmental degradation in both high-income group of Asian countries and low-income Asian economies, with stronger effects in High income Asian nations. Conversely, nonrenewable energy consumption consistently increased CO₂ emissions and ecological pressure across all quantiles. Institutional quality showed a mitigating role, improving environmental outcomes by strengthening governance and policy enforcement. GDP growth was positively linked with emissions, though its adverse effects were partly offset by renewable energy adoption. The findings highlight the need for energy diversification, stronger institutions, and targeted policies promoting renewable sources to achieve sustainable growth and enhance environmental quality across Asian economies.