The major purpose of this study is to assess racial disparity and energy poverty index by measuring energy poverty index by using data envelopment analysis and regression equation from South Asia (2001–2018). An energy poverty index is quantifying the size and scope of energy poverty, and DEA is used to investigate the relevance of socioeconomic position to multidimensional energy poverty. In multidimensional energy poverty, location, house ownership position, number of dependents, and the age of the main caregiver have an important positive impact. Our research has shown that Bhutan is the most susceptible nation with an energy poverty index of (0.02), Maldives (0.03), and Bangladesh (0.11), while India (0.86) and Pakistan (0.49) are the least likely to be energy poor as regards energy poverty. Of the total energy production, 78% is based on traditional fuels, followed by 12% based on petroleum products. The Gini index indicates a positive association with the energy poverty index at a 5% significance level. This signifies that these socioeconomic indicators positively contribute to the energy poverty index level. This study developed more synchronized policies to eradicate energy poverty and can provide a way forward for policymakers to develop strategies to implement them suitably in the regional power sector.

Since 1970, numerous governments have established strategic petroleum reserves (SPRs) in relation to oil supply interruptions. In this study, important oil reserves, physical oil supply disruption and social welfare losses due to physical distribution of oil supply have been measured. The physical oil supply disruption has been measured in the form of oil supply vulnerability index and oil volatility index of the South Asian economies. Analysis reveals that the accumulation and drawdown of important national crude oil strategic petroleum reserves where the state wants to optimize individual social welfare while individuals hold over stock optimize their earnings levels. The monetary deciding factors utilize the government’s optimum important stockpile policy and simultaneously the amount and economic factors vital for the nongovernment market to actuate the optimum accumulation and nonaccumulation of important fossil fuels stockpile. Additionally, findings show that India is the lowest crude oil insecure country while Afghanistan and Bangladesh are the highest insecure countries in terms of oil supply. India’s topmost mark shows a bigger possibility to alter the fossil fuels producers while Afghanistan, Bangladesh, Bhutan and Nepal have the minimum mark corroborating the group as the utmost producer risk exposed nations.

In recent years, financial development, trade policies, and energy performance have attracted attention due to their behavior on environmental quality. Therefore, the current study examines the impact of financial development, trade openness, primary and renewable energy utilization, and economic growth on the ecological footprint in South Asian Association for Regional Cooperation (SAARC) countries from 1990 to 2017. This article progresses the proficiency of financial development by utilizing the comprehensive and multidimensional index of financial sector development based on their depth, access, and efficiency of their financial institutions and markets. In order to estimate the robust results, this study employed the cross-sectional dependency tests that allow the second-generation unit root, Westerlund cointegration, augmented mean group (AMG), error correction model (ECM), and Dumitrescu–Hurlin (D-H) panel non-causality tests. The results revealed a very weak effect of financial development in a panel of SAARC countries, while country-specific results reveal that financial development significantly enhances the pollution level in the case of Bangladesh and Sri Lanka. However, it improves the environmental quality in Nepal. Furthermore, trade openness only improves the environmental quality in the case of Nepal. Additionally, the findings explore that primary energy consumption enhances the ecological footprint in Bangladesh, Nepal, and Sri Lanka and reduces in case of Bhutan. On the contrary, renewable energy consumption significantly improves the environmental quality in all countries except Bangladesh. Finally, consistent with these findings, a number of suitable policy implications are expressed in the angle of SAARC economies.

This paper aims to scrutinize the validity of the greenhouse emissions-induced environmental Kuznets curve (EKC) hypothesis, controlling for liquefied petroleum gas (LPG) consumption, FDI inflows, and trade openness, in the context of six South Asian economies. Besides, the impacts of LPG use on both aggregate and disaggregated emissions of greenhouse gases are also evaluated. Using annual data from 1980 to 2016, the elasticity estimates from the autoregressive distributed lag (ARDL) regression analysis confirms the authenticity of the EKC hypothesis for Bangladesh, India, Sri Lanka, and Bhutan. In the cases of Pakistan and Nepal, economic growth, in the long-run, is evidenced to monotonically increase and decrease the greenhouse emissions, respectively. However, LPG consumption is found to homogenously reduce all types of greenhouse emissions in each of the selected South Asian nations. Moreover, in majority of the cases, statistical evidence of joint favorable impacts of economic growth and LPG consumption on the environment are ascertained. Furthermore, the Hacker and Hatemi-J bootstrapped causality analysis finds causal relationships between economic growth, greenhouse emissions, and LPG consumption. However, the causality estimates are found to be heterogeneous across the different South Asian nations considered in the analysis. The results, in a nutshell, denote that economic growth is both the cause and the solution to the greenhouse emission problems faced by the South Asian economies. Moreover, the results also assert that LPG can be a transitional fuel to reduce these emissions before the South Asian nations are ready to undergo transition from non-renewable to renewable energy consumption. Hence, the findings impose key fuel-diversification policy implications for the South Asian governments.

In the last few decades, developing countries continued to increase their manufacturing industries’ phenomenal growth rate. Due to the emergence of globalization, these developing countries are getting economic growth at the cost of environmental pollution. In this context, the extent of linkages between globalization and carbon dioxide (CO₂) emissions has been investigated over the time period of 1972–2013 in South Asian countries. The econometric and graphical analyses are found U-shape association between globalization and CO₂ emissions in Nepal, Afghanistan, Bangladesh, and Sri Lanka, and an inverted U-shape relationship is observed in Pakistan and Bhutan. Moreover, results have shown that there exists a bi-directional causality between globalization and CO₂ emissions in Pakistan, Bangladesh, and Nepal. This indicates that globalization is increasing CO₂ emissions and CO₂ emissions impact globalization by economic growth. However, after some threshold level, globalization is responsible for decreasing CO₂ emissions in Pakistan and Bhutan. For the first time, globalization is incorporated in the economic analysis, showing the U-shape and inverted U-shape associations between globalization and CO₂ emissions. This study suggests some strong policy recommendations to consider globalization as cost-effective tool to achieve sustainable economic growth in South Asian countries.