Investigating the effect of renewable and non-renewable energy consumption on social welfare in developing Asian countries: Quantile regression approach

Energy as one of the factors of production along with labor and capital has an important role in development and social welfare. Due to the pollution of non-renewable resources and its negative impact on welfare, the use of renewable resources can improve social welfare by eliminating pollutants. In this study, the effect of renewable and non-renewable energy consumption on social welfare of developing Asian countries in the period 2007-2018 has been investigated using the quantile panel approach. Findings show that the consumption of renewable and non-renewable energy increases welfare and has a positive and significant effect on welfare, although the impact factor of renewable energy consumption is much larger than the impact factor of non-renewable energy consumption. So that the impact factor of renewable energy consumption in the initial deciles is higher than the final deciles. Also, the effect of other variables such as environmental performance index, employment rate, gross capital formation on welfare is positive and significant and the effect of CO2 pollution on welfare is negative and significant.