A STUDY OF THE INTERRELATIONSHIP AMONG ENERGY, ECONOMY AND ENVIRONMENT

Abstract

The intricate interplay among energy, economy, and environment constitutes a fundamental axis that significantly impacts sustainable development on a global scale. This research examines the coupling coordination of the 3Es through an extensive analysis of case studies from India, the United Kingdom, and Germany, covering various periods and contexts. The results underscore the intricate interplay between developmental trajectories, energy policies, and environmental strategies in shaping sustainability outcomes. In India, from 2006 to 2018, the coupling coordination index (CCI) exhibited notable variations, rising from 0.4, indicative of mild disorder, in 2006 to 0.6049, representing primary coordination, in 2015, before experiencing a decline to 0.579, which reflects a state of barely coordinated, by 2018. This trajectory was shaped by concerted initiatives aimed at broadening energy access, sustaining economic growth, and diminishing energy intensity. Nonetheless, the nation’s dependence on coal for more than 60% of its electricity production has resulted in considerable greenhouse gas emissions, as demonstrated by the decrease in the Environmental Performance Index (EPI) to 0.306 in 2018. The contribution of renewable energy to the total energy demand stands at a modest 5%, with substantial obstacles in financing, characterised by elevated debt costs ranging from 12% to 14%, alongside challenges related to land availability that impede advancement. Analysis of data from the United Kingdom spanning from 1965 to 2021 indicates a robust positive correlation between GDP, manufacturing, and energy consumption with CO2 emissions, observable in both short-term and long-term contexts. Notwithstanding the notable advancements achieved in diminishing emissions by 43% from 1990 to 2020, fossil fuels continued to represent a substantial 76% of the energy composition in 2021. The proportion of vi renewable energy sources, while experiencing an increase from 4% in 1990 to 13% in 2021, continues to be inadequate in mitigating the environmental repercussions associated with emissions from industrial activities and transportation. Policy reforms have facilitated decarbonisation; however, to meet the Sixth Carbon Budget's objective of a 78% reduction in emissions by 2035, it is imperative to expedite the adoption of renewable energy sources, with a specific focus on offshore wind, aiming for a capacity of 40 GW by 2030. The examination of Germany's situation from 1970 to 2021 elucidates the complexities associated with industrial emissions and transportation in the endeavour to mitigate CO2 emissions, notwithstanding the considerable advancements in renewable energy implementation. The data indicated a positive correlation between CO2 emissions and both energy consumption and air freight transport, whereas the influence of renewable energy on emissions reduction was found to be statistically insignificant. Nuclear energy, which was originally advocated as a more environmentally friendly option, reached its zenith in 1985. However, following the Fukushima disaster and subsequent societal opposition, it experienced a downturn after 2012, culminating in its gradual discontinuation. As of 2021, renewable energy sources represented 42% of total electricity generation, while coal maintained a significant contribution of 28%. This highlights the urgent necessity for accelerated coal phase-out initiatives and the implementation of more stringent industrial emission regulations. The analysis of these studies reveals significant systemic challenges in achieving a harmonious balance between economic growth and environmental preservation. The reliance on traditional energy sources, including coal and oil, persists in intensifying environmental degradation. Industrial emissions constitute 50% of greenhouse gas emissions in nations such as India, whereas transport and aviation play a substantial role in the emissions profile of developed vii countries like Germany and the UK. The complexities presented by these challenges demand immediate and focused interventions, particularly the implementation of Carbon Capture, Utilisation, and Storage (CCUS) technologies. CCUS has surfaced as a credible approach for mitigating emissions from sectors that are challenging to decarbonise, including steel, cement, and thermal power. In the context of India, the incorporation of carbon capture, utilisation, and storage (CCUS) technologies within coal-fired power generation facilities has the capacity to diminish greenhouse gas emissions by an estimated 30% to 40%. On a global scale, the implementation of such technologies presents the opportunity for significant economic efficiencies, with potential cost savings ranging from $60 to $100 for each tonne of carbon dioxide captured. Concurrently, the expansion of renewable energy sources, particularly offshore wind and urban solar initiatives, has the potential to enhance energy diversification and mitigate reliance on fossil fuels. Denmark’s achievement in wind energy, reaching a 72% share of renewable electricity in 2020, serves as a model that can be replicated. To attain sustainable development, nations must implement comprehensive strategies that incorporate renewable energy sources, enhance energy efficiency, and utilise carbon capture, utilisation, and storage technologies. The shift towards a sustainable energy future necessitates a careful equilibrium among economic development, energy security, and the preservation of the environment. This study highlights the critical necessity for synchronised international efforts, innovation in technology, and well-structured policy frameworks to realise the ambitious objectives of carbon neutrality and sustainable development.