Causal relationship between renewable energy consumption and economic growth: comparison between developed and less-developed countries

Cho, Sangmin; Heo, Eunnyeong; Kim, Jihyo

doi:10.1080/12269328.2015.1053540

Cited by 52 publications

(30 citation statements)

References 26 publications

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“…Besides, we found lower-tail dependence between changes in oil prices and renewable energy consumption; these results are consistent with Reboredo (2015), who reported evidence of tail dependence between oil prices and a set of global renewable energy indices. Our findings are also in line with Akarca and Long (1979), Lee (2005Lee ( , 2006, Soytas and Sari (2006), Mahadevan and Asafu-Adjaye (2007), Sari et al (2008), and Cho et al (2015), who found evidence of Granger-causality from changes in energy consumption to economic growth in the U.S.…”

Section: Empirical Analysissupporting

confidence: 92%

“…Using a multivariate panel vector error correction model for 1990-2010 data for a set of 31 OECD countries and 49 non-OECD countries, Cho et al (2015) showed that the hypothesis of unidirectional causality running from economic growth to renewable energy consumption is valid in the long run for OECD countries, and the bidirectional causality, for non-OECD countries. Jebli and Youssef (2015) investigated the association between renewable energy consumption and economic growth for a set of 69 developing countries over the period 1980-2010.…”

Section: Panel Analysis On the Renewable Energy-economic Growth Nexusmentioning

confidence: 99%

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Renewable energy, oil prices, and economic activity: A Granger-causality in quantiles analysis

2018

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This paper analyzes the causal relationship between renewable energy consumption, oil prices, and economic activity in the United States from July 1989 to July 2016, considering all quantiles of the distribution. Although the concept of Granger-causality is defined for the conditional distribution, the majority of papers have tested Granger-causality using conditional mean regression models in which the causal relations are linear. We apply a Granger-causality in quantiles analysis that evaluates causal relations in each quantile of the distribution. Under this approach, we can discriminate between causality affecting the median and the tails of the conditional distribution. We find evidence of bi-directional causality between changes in renewable energy consumption and economic growth at the lowest tail of the distribution; besides, changes in renewable energy consumption lead economic growth at the highest tail of the distribution. Our results also support the unidirectional causality from fluctuations in oil prices to economic growth at the extreme quantiles of the distribution. Finally, we find evidence of lower-tail dependence from changes in oil prices to changes in renewable energy consumption. Our findings call for government policies aimed at developing renewable energy markets, to increase energy efficiency in the U.S.

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Section: Empirical Analysissupporting

confidence: 92%

Section: Panel Analysis On the Renewable Energy-economic Growth Nexusmentioning

confidence: 99%

Renewable energy, oil prices, and economic activity: A Granger-causality in quantiles analysis

2018

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“…Cho et al [31] considered the causal link between renewable energy consumption and economic growth for 31 OECD countries and 49 non-OECD countries for the period 1990-2010. The heterogeneous panel cointegration test confirmed the existence of a long-term relationship between the subject variables for developed countries, so the authors concluded that for these countries, it was economic growth that played an important role for the growth of renewable energy consumption.…”

Section: Literature Reviewmentioning

confidence: 99%

Sustainable Economic Development and Greenhouse Gas Emissions: The Dynamic Impact of Renewable Energy Consumption, GDP, and Corruption

et al. 2019

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The paper investigates the relationships between economic, social, and environmental dimensions of sustainable development. GDP growth represents the main economic dimension, greenhouse gas (GHG) emissions and renewable energy consumption the environmental dimension, and corruption the social dimension of sustainable development. The investigation of these relationships is based on the concept of the Environmental Kuznets Curve hypothesis about the non-linear relationship between economic growth and environmental pollution. The authors used the panel data of EU countries and Ukraine for 2000–2016 years from the Eurostat database. The obtained results confirmed the Environmental Kuznets curve hypothesis for the EU and Ukraine. All the indicators were statistically significant at 1% and 5% levels. The findings proved that increasing renewable energy (RE) by 1% led to a decline of GHG in the interval (0.166103, 0.220551), and аn increase of the Control of Corruption Index by 1% provoked a decline of GHG by 0.88%. The conducted study enabled the authors to conclude that Ukraine needs to increase the GDP level per capita given the economy diversification and via the introduction of more effective and “clean” production technologies.

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“…From this perspective, the growth of economic capital should not be at the expense of the decline in natural or social capital. Thus, economic growth should not ignore the balance of natural resources, ecosystems, social welfare, and wealth distribution [15]. Sustainable development emphasizes the evolution of human society from an economically responsible point of view, in line with environmental and natural processes.…”

Section: Sustainable Development Of Enterprisesmentioning

confidence: 99%

Resonance of Investments in Renewable Energy Sources in Industrial Enterprises in the Food Industry

2020

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Investments in renewable energy sources are an important direction in the development of modern economies. Motivating organizations to include appropriate investments in their development strategies becomes an essential issue. It seems clear that organizations need to see the long-term benefits of such investments in order to follow this trend. This article presents a thesis that assumes that from the microeconomic perspective, such investments are conducive to the implementation of various goals of the organization, causing the phenomenon of resonance in spheres such as the implementation of the sustainable development strategy, the level of innovation in the organization, brand image, and brand equity. The survey method was carried out on a sample of 143 industrial companies in the food industry in order to verify the hypotheses based on previous examples. Among the most important findings, it should be noted that investments in renewable energy sources make a significant contribution to building the market position of enterprises, in particular, to the level of innovation, creating value in a sustainable enterprise, and achieving goals in the area of creating a positive brand image and brand equity. The findings show that investing in renewable energy is compatible with the organization’s different goals.

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Causal relationship between renewable energy consumption and economic growth: comparison between developed and less-developed countries

Cited by 52 publications

References 26 publications

Renewable energy, oil prices, and economic activity: A Granger-causality in quantiles analysis

Renewable energy, oil prices, and economic activity: A Granger-causality in quantiles analysis

Sustainable Economic Development and Greenhouse Gas Emissions: The Dynamic Impact of Renewable Energy Consumption, GDP, and Corruption

Resonance of Investments in Renewable Energy Sources in Industrial Enterprises in the Food Industry

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