The Impact of Biomass Energy Consumption on Human Development: Evidence from Asian Countries

Abstract

The effects of biomass energy consumption on the economy, environment and human development remain a debatable issue, and no consensus on this topic has yet been reached among researchers. Several studies have explored the economic, environmental and human well-being perspectives of biomass energy usage and have found mixed results. The current study would like to contribute to the existing literature by examining the impact of biomass energy usage on human development in Asian nations during the period 1995-2016. Panel cointegration approaches, along with a Dumitrescu-Hurlin panel causality test, have been performed to assess the long-run causal relationship between biomass energy use and human development. Our findings suggest that the usage of biomass energy can enhance the human development in Asian countries and the existence of a bidirectional causal relationship found between these two variables. These findings may be a recommendation to policymakers to encourage the use of biomass energy.