Evaluating the disaggregated impact of renewable and non renewable electricity generation on economic welfare in India.

As a developing country, India has experienced considerable social progress and economic growth (EG) that has driven higher energy use, which has affected the economic welfare. To identify these problems, this study investigates the impact of electricity generation, particularly from renewable and non-renewable sources, on economic welfare in India from 1990 to 2019. This study employing the ARDL model, augmented by the application of principal component analysis (PCA) to diverse indicators of economic welfare (EWI), including Employment (EMP), Human Capital (HC), CO2 emission (CO2),  Economic Growth (GDP), Consumption (CCON), life expectancy (LE) and Work Engagement (AVH). The findings reveal that wind and solar power negatively affect EWI in the long run, while hydropower positively affects EWI in the long term. Furthermore, non-renewable sources, except nuclear power, show a significant positive impact on EWI in the long term and nuclear power negatively impacts it. This study contributes to existing literature by revealing that not all renewable energy sources equally promote economic welfare, emphasising the need for differentiated renewable energy policies in developing economies like India. The study underscores the importance of a balanced energy strategy, advocating for investments in renewable energy sources (RES) and non-renewable energy sources (NRES) to enhance EWI in India and offering valuable insights for policymakers aiming to ensure universal access to energy. The study suggests that India should have a balanced energy strategy that improves the economy by building up renewable energy sources and carefully controlling the usage of fossil fuels.