Journal of Resources,Energy and Development

The progress of a society largely depends on the resources available to it. Owing to its large population, India’s demand on natural resources is constantly increasing, and it is essential that these resources are managed scientifically in a contemporary and eco-friendly manner before it is too late. Natural resources are often classified into renewable and non-renewable resources. As long as they are dealt with sensibly in a sustainable way, renewable resources can be used indefinitely. Renewable natural resources include water, wind, tides, solar radiation, and biomass, which are important energy sources for generating non-conventional power. North East states of our country are fortunate enough to be endowed with both exhaustible and renewable energy sources. Despite this, after more than half a decade of Independence, development and progress have been very slow in the North East India. This can be attributed to the lack of proper planning on the utilization front. Till date, the region is facing severe power cuts and shortage. The energy situation in the state of Tripura, a remote part of north-eastern region of India, is characterized by low quality of fuel, low efficiency of use, low reliability of supply, and limited access, leading to lower productivity of land, water, and human beings. This ultimately results in low quality of life and environmental degradation. The centralized grid electricity supply to low-load rural establishments is characterized by fluctuating voltage, unreliable supply, and shortage of power in most parts of Tripura. The number of power-generating stations located in the state is not sufficient to meet the demand of the people of Tripura. The gap between supply and demand causes tremendous power cut, particularly in the peak load period, throughout the year. The geographical location of this region makes grid electricity technically unfeasible and commercially unviable. The present study examines the renewable resources available in the state, which can be harnessed to generate power and gives a plausible solution to both demand and supply side pressures on the electric grid.

The paper studies the causal and long-run relationship between petroleum imports and economic growth in Cyprus for the period 1960–2004 using a newly developed ARDL (autoregressive distributive lag) approach to cointegration, which is according to Pesaran, Shin, and Smith (2001). To supplement the findings of cointegration, the causal relationship was assessed using Granger causality test. Additionally, the strength of causality was tested using the innovation accounting or variance decomposition analysis, which is according to Pesaran and Shin (1998). The study finds a stable long-run cointegrating relationship with a long run bidirectional causality running interactively through the error correction term. This suggests that Cyprus is an energy dependent island where negative shocks to energy, such as shocks leading to higher energy prices or energy conservation policies, will impact on the island’s economy negatively. The policy implication is that reducing petroleum imports can lead to a fall in income and any conservation measures adopted should take into consideration the negative impact they have on economic growth. Cyprus should also find ways of diversifying its sources of petroleum imports in order to reduce supply uncertainties and dependence on a single source of energy.