Does economic growth promote electric power consumption? Implications for electricity conservation, expansive, and security policies

Navarro, Ciro Eduardo Bazán; Álvarez-Quiroz, Víctor Josué; Sampi, James; Sánchez, Adolfo A. Arana

doi:10.1016/j.tej.2023.107235

Cited by 12 publications

(6 citation statements)

References 32 publications

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“…For example, few studies show a weak relationship between economic growth and renewable energy consumption. Another stream of empirical research revealed a possible causal relationship between economic growth and renewable energy consumption, leading to the development of four hypotheses: neutral [4,[6][7][8][9], feedback [10][11][12], growth [13,14], and conservation [15][16][17] hypotheses. Groundbreaking empirical research focuses on bivariate models to detect causal relationships between renewable energy consumption and economic growth.…”

Section: Introductionmentioning

confidence: 99%

Does globalization matter in the relationship between renewable energy consumption and economic growth, evidence from Asian emerging economies

Zhang

Ali

et al. 2023

PLoS ONE

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The study aims to investigate the impact of social, economic and political globalization on the renewable energy-economic growth nexus in a panel of six Asian emerging economies over the period 1975–2020. The results of the CS-ARDL approach show that renewable energy consumption contributes significantly to long run economic growth. Economic and political globalization firmly hold back economic growth, while social globalization directly promotes economic growth. The nonlinear effects of political, social, and economic globalization on economic growth clearly demonstrate the validity of the inverted U-shaped relationship between political globalization, economic globalization, and economic growth, and the U-shaped relationship between social globalization and economic growth. The study also found that economic, social and political globalization moderated the impact of renewable energy on boosting economic growth. Based on the renewable energy consumption model, it is revealed that economic growth significantly promotes long run renewable energy consumption. Economic, social, and political globalization have significantly boosted long run renewable energy consumption. However, the nonlinear effect model reflects a U-shaped relationship between globalization indicators and renewable energy consumption. The interaction of political, economic, and social globalization with economic growth has also witnessed an increase in renewable energy consumption, which supports the scale effect hypothesis. The causality test concludes that there is a two-way causal relationship between renewable energy consumption and economic growth, thus supporting the feedback hypothesis. The policy implications for Asian emerging economies are discussed based on the empirical analysis of this study.

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Section: Introductionmentioning

confidence: 99%

Does globalization matter in the relationship between renewable energy consumption and economic growth, evidence from Asian emerging economies

Zhang

Ali

et al. 2023

PLoS ONE

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“…This means that economic growth has no effect on consumption of electrical energy. According to Navarro et al (2023), electricity consumption does not explain economic growth and vice versa. The findings further describe that expansion in trade activities and enhancement in economic growth can significantly reduce the consumption of energy through technical effect (Tiwari et al, 2022).…”

Section: The Effect Of Economic Growth On the Consumption Of Electric...mentioning

confidence: 99%

Determinants of Variables That Affect Electrical Energy Consumption in Indonesia 2011-2020

Akbar,

Mafruhah,

Gravitiani

2024

IJEEP

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This study aims to analyze the determinants of variables that affect electricity consumption in Indonesia 2011-2020. There are 4 variables that are used as determinant variables, namely (1) economic growth, (2) population growth, (3) Human Development Index (HDI), and (4) internet access. This study uses a random effect model regression method using data that is panel data consisting of 34 provinces in Indonesia in the span of 2011 - 2020. Secondary data were obtained from the Central Statistics Agency (BPS), a statistical report of PT. PLN (Persero) and previous research literature studies. The results of this study found that (1) the variable of economic growth did not affect electricity consumption, (2) the population growth variable also did not affect the consumption of electricity, (3) the variable Human Development Index (HDI) had a positive effect on electricity consumption and (4) internet access variable has a negative effect on electricity consumption. Suggestions that the author can convey are: (1) optimizing the potential of New Renewable Energy (EBT), (2) conserving electricity and making efficient use of electricity, (3) increasing the electrification ratio so that electricity can be enjoyed by the entire community.

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“…It should be noted that the growth of energy consumption is inherent in economic development (growth). The relationship between the consumption of energy resources and economic development is considered according to four hypotheses: growth, conservation neutrality and feedback [7,8]. As for the growth hypothesis, it assumes that energy resources have a direct impact on economic development and are an important production factor.…”

Section: Introductionmentioning

confidence: 99%

European Green Deal: The Impact of the Level of Renewable Energy Source and Gross Domestic Product per Capita on Energy Import Dependency

Kukharets,

Hutsol,

Kukharets

et al. 2023

Sustainability

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The level of renewable energy use and economic development of a country, as separate indicators, have an influence on the level of energy resource imports, but the mutual impact of renewable energy sources and gross national product on the growth or decrease of energy imports dependency have not been studied. Therefore, the aim of this study was to evaluate the energy security of European countries by taking into account the consumption of renewable energy sources and the economic development of the countries. In particular, the article examines the relationship between energy import dependency, gross domestic product (per capita), and renewable energy sources in 27 countries in the European Union. Regression analysis of data on EU countries for 11 years (from 2011 to 2021) was used to determine the non-linear influence of gross domestic product and renewable energy use on energy import dependency. This influence was simulated by a second-order regression equation. The analysis of the equation for extremes made it possible to conclude that with a share of energy from renewable sources at the level of 32%, the economic development of a country does not require an increase in energy import dependency, and with larger values of energy from renewable sources, a decrease in energy import dependency may occur. In addition, according to the analysis of the obtained mathematical dependence, it is recommended that countries with a gross domestic product of up to 10,000 euros per capita use renewable energy sources at the level of 40%. For the countries with a domestic product of up to 30,000 euros per capita should use renewable sources at the level of 50%. For countries with a gross domestic product of more than 30,000 euros per capita, renewable energy sources at a level of more than 55% is recommended. A high level of renewable energy use will allow a country to increase its gross domestic product without a significant increase in energy import dependency, and at the level of renewable energy sources of more than 32%, an increase in gross domestic product does not actually lead to an increase in energy import dependency. An increase in the use of renewable energy sources above 40% of the total consumption of energy resources in a specific country, in particular, and in the European Union, in general, will ensure an increase in energy security and an increase in the level of energy independence.

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Does economic growth promote electric power consumption? Implications for electricity conservation, expansive, and security policies

Cited by 12 publications

References 32 publications

Does globalization matter in the relationship between renewable energy consumption and economic growth, evidence from Asian emerging economies

Does globalization matter in the relationship between renewable energy consumption and economic growth, evidence from Asian emerging economies

Determinants of Variables That Affect Electrical Energy Consumption in Indonesia 2011-2020

European Green Deal: The Impact of the Level of Renewable Energy Source and Gross Domestic Product per Capita on Energy Import Dependency

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