Does urbanisation induce renewable energy consumption in emerging economies? The role of education in energy switching policies

Abstract

This paper examines the effects of urbanisation and education on renewable and non-renewable energy demand in the emerging economies (Brazil, India, China and South Africa) from 1990 to 2015. By utilising panel data techniques and adding income level, industrialisation and economic globalisation in the estimation of energy demand function as additional predictors, the findings indicate that urbanisation and economic globalisation reduce renewable and non-renewable energy demand. However, income level and pattern of education (primary and secondary) levels induce it. Although industrialisation is ineffective in improving the demand for renewable energy, it drives up total energy and non-renewable energy demand. The findings remain unchanged even for primary energy demand and are found to be robust across all the panel estimation techniques. This evidence reveals that the pattern of education levels is not effective in curbing the use of fossil fuels but promotes the usage of renewable energy, while urbanisation induces the pattern of energy use in emerging economies. Therefore, it is suggested that policies which tackle energy inefficiency should check an overburdened planetary system, minimise urban anomalies, and promote pro-environmental education.