Investigating the nexuses between transportation Infrastructure, renewable energy Sources, and economic Growth: Striving towards sustainable development

The global economy has recorded an unprecedented increase in growth rates in the last few decades occasioned by the expanding interconnectedness among countries through exchanging goods and ser-vices. The expanding production base has increased the demand for fossil fuels, specifically crude oil, both in local and foreign markets, leading to inevitable imports. Despite this, factors driving the increasing demand for oil imports have not been extensively researched thus calling for an empirical verification on the matter. Hence, this study contributes to the literature by investigating the tripartite effects of transportation infrastructure, economic growth, and renewable energy on crude oil imports. The empir-ical evidence relies on the autoregressive distributed lag (ARDL) model for bound test cointegration employed to obtain long-and short-run estimates. The empirical results from the study's analysis show that renewable energy hinders crude oil importation while transportation stimulates it in both econo-mies. The inducing role of economic growth is substantial only in China, and the significant effect of for-eign direct investment and industrialization prove to be fundamental in driving crude oil imports. Consequently, the study concludes that other explanatory variables contribute to crude oil dependence in China and India, asides from renewable energy. The post estimation tests conducted further accentuate the validity and reliability of the empirical outcomes. Drawing from the empirical outcome, the study suggests the criticality of renewable energy promotion as a viable policy decision to resolve the growth of oil dependence in the countries under study.(c) 2022 THE AUTHORS. Published by Elsevier BV on behalf of Faculty of Engineering, Ain Shams Uni-versity. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/ by-nc-nd/4.0/).

Automated summary

The global economy has experienced significant growth in recent decades due to the increasing interconnectedness among countries through the exchange of goods and services. This study investigates the effects of transportation infrastructure, economic growth, and renewable energy on crude oil imports, using the autoregressive distributed lag (ARDL) model. The empirical results show that renewable energy hinders crude oil importation, while transportation stimulates it in both economies. Economic growth plays a substantial role only in China, and foreign direct investment and industrialization are fundamental in driving crude oil imports. The study concludes that other factors contribute to crude oil dependence in China and India, and suggests the promotion of renewable energy as a viable policy decision to address the growth of oil dependence in these countries.