DETERMINANTS OF RENEWABLE ENERGY PRODUCTION: ROLE OF GOVERNANCE AND PATHWAY TO SUSTAINABLE DEVELOPMENT

Abstract

The global shift toward renewable energy (RE) responds to environmental concerns, particularly the excessive use of fossil fuels, which contribute to climate change and energy insecurity. It argues that producing renewable energy is crucial to reducing carbon dioxide (CO2) emissions and ensuring stable energy supply. Therefore, understanding the key factors influencing renewable energy production (REP) is essential for successfully transitioning to sustainable energy system. This interpretation highlights importance of identifying and analyzing elements that promote the adoption and growth of renewable energy as the solution to environmental and energy security challenges. This study is based on the time series analysis for Pakistan, which uses data from 1980 to 2024. Economic variables such as GDP per capita and trade openness, along with the demographic factors like urban population, environmental variables like ecological footprints, and political variables like governance positively influence REP. The economic and demographic factors support growth of REP, environmental and energy-related variables exert opposing effects. Thus, listing renewable energy projects over other energy sources is vital for achieving stable and environmentally sustainable energy future.