Examining the bi-directional long run relationship between renewable energy consumption and GDP growth

Al‐mulali, Usama; Fereidouni, Hassan Gholipour; Lee, Janice Yim Mei; Sab, Che Normee Binti Che

doi:10.1016/j.rser.2013.02.005

Cited by 275 publications

(102 citation statements)

References 82 publications

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“…Given this, we used the contributions of the traditional energy sources (oil, natural gas, coal and nuclear) for electricity generation as proxies for the power exerted by their respective trade associations within energy technology industries. GDPPC refers to market attractiveness, derived from both market size and the rate of market growth of renewable energy technologies, driven by consumption of renewable energy technologies (measured in GDP per capita) [60,75]. ESECU denotes a country's dependency on imported energy, measured as the ratio of imported to total energy supply [60].…”

Section: Model Specification and Methodologymentioning

confidence: 99%

Who Drives the Transition to a Renewable-Energy Economy? Multi-Actor Perspective on Social Innovation

Sung

Park

2018

Sustainability

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This study examines how various actors influence the transition to a renewable-energy economy. We employ a conceptual framework derived from a literature review and text-mining analysis and establish a panel data model for an empirical test using unbalanced panel data from 25 member countries of the Organization for Economic Co-operation and Development (OECD), for the period from 1990 to 2014. We establish a panel vector autoregressive (VAR) model in the first differences and use a bias-corrected least squares dummy variable (LSDVC) estimator to test complex dynamic relationships between government, the public, markets, the traditional energy sector (i.e., the sector that uses nuclear power, oil, coal and natural gas as sources for electricity) and the contribution of renewables to the total energy supply. We also perform Wald tests on the coefficients of variables estimated by LSDVC estimator to determine causal relationships between the variables. The results of this study reveal that government and markets directly promote the transition to renewable energy, whereas the traditional energy sector negatively and directly affects the transition. By contrast, the public does not directly influence the transition to a renewable-energy economy. This study also shows that the government and public have positive indirect effects on the transition, by interacting with the market. We also find convincing evidence of significant dynamic-path dependence in all estimations. Finally, we discuss some implications based on the findings of this study.

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Section: Model Specification and Methodologymentioning

confidence: 99%

Who Drives the Transition to a Renewable-Energy Economy? Multi-Actor Perspective on Social Innovation

Sung

Park

2018

Sustainability

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“…The effects of both variables are uncertain since large energy use and/ or growing energy needs due to population expansion could be supplied either by traditional energy sources or by renewable energy (see Carley, 2009;Marques et al, 2010). 1 Greene House Gas 100 Volume 54…”

Section: Energy Needsmentioning

confidence: 99%

“…This command determine the best subsets of each predictor size by using leaps-andbounds algorithm and provides the five information criteria 1 for each of these models in order to select the optimist model. The optimal model is the one model with these qualities: the smallest value of Akaike's information criterion (AIC), Akaike's corrected information criterion (AICc) and Bayesian information criterion (BIC); the largest value of R 2 ADJ (adjusted); and a value of Mallows's C p that is close to the number of predictors in the models +1 or the smallest among the other Mallows's C p values.…”

Section: Selection Of Optimum Modelsmentioning

confidence: 99%

Determinants of Renewable Energy Consumption among ECO Countries; Based on Bayesian Model Averaging and Weighted-Average Least Square

Mehrara

Rezaei

Razi

2015

ILSHS

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ABSTRACT. Over recent years, renewable energy sources have emerged as an important component of world energy consumption. Increased concern over issues related to energy security and global warming suggests that in the future there will be a greater reliance on renewable energy sources. Given the role of renewable energy in the discussion of a reliable and sustainable energy future, it is important to understand its main determinants and to draw result implications for energy policy. This paper identifies the key determinants of renewable energy consumption among Economic Cooperation Organization (ECO) countries, over the period 1992-2011. There is a large literature on determinants of energy consumption and several studies have included a large number of explanatory variables. Empirical models of energy consumption are plagued by problems of model uncertainty concerning the choice of explanatory variables and model specification. We utilize Bayesian Model Averaging (BMA) and Weighted-Average Least Square (WALS) to resolve these model uncertainties. We have used not only conventional explanatory variables that have been used in last studies, but also institutional variables to consider the effect of socio-economic environment. The results of this study indicate that the institutional environment proxies, urban population, and human capital are the most important variables affecting renewable energy consumption in the ECO economies. Also the second and third effective variables are the renewables potential which lead to an increase in renewable energy consumption, and Co 2 emission which has revers effect respectively. Therefore improving of institutional circumstances and human capital can be useful to renewable energy growth and reducing of detrimental externalities of fossil energy consumption.

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“…These relations suggest that efficiently implemented government policy plays an important socioeconomic role in achieving environmentally sound and sustainable development by increasing real GDP driven by export growth. This leads to governmental budgetary slack, which allows policymakers to promote RE technologies [66] and/or increase demand preferences, demand, and consumption for RE technologies [7,25,90], which can also lead to an increase in home market size [67]. Therefore, policymakers should find effective policy responses to formulate more effective strategies that address the various connotations of real GDP related to RE technologies.…”

Section: Discussionmentioning

confidence: 99%

Eco-Efficiency of Government Policy and Exports in the Bioenergy Technology Market

2017

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This study investigates how the eco-efficiency of government policy-continuously implementing innovation-friendly policy based on both environmental and economic considerations-affects the export performance of bioenergy technologies, using panel data from 16 countries during 1995-2012. Various heterogeneous panel framework tests are conducted. Our panel unit root and co-integration tests, which allow for cross-sectional dependence in the panel, show that the time series data on the eco-efficiency of public support, exports, and gross domestic product (GDP) are integrated and co-integrated. We set up a panel vector error correction model (VECM) to empirically test the casual relationship among the variables examined. The long-term parameters of the variables were calculated using dynamic ordinary lease squares (DOLS). Panel difference generalized method of moments (GMM) estimations were conducted to test the short-term relationship among the variables. The results of this study therefore show that the eco-efficiency of government policy positively influences export performance in the long run, but not in the short run. The presented findings also indicate that efficiently implemented government policy plays a crucial role in achieving environmentally sound and sustainable development, showing path dependence among the eco-efficiency of government policy, exports, and GDP. We finally suggest policy implications based on the results.

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Examining the bi-directional long run relationship between renewable energy consumption and GDP growth

Cited by 275 publications

References 82 publications

Who Drives the Transition to a Renewable-Energy Economy? Multi-Actor Perspective on Social Innovation

Who Drives the Transition to a Renewable-Energy Economy? Multi-Actor Perspective on Social Innovation

Determinants of Renewable Energy Consumption among ECO Countries; Based on Bayesian Model Averaging and Weighted-Average Least Square

Eco-Efficiency of Government Policy and Exports in the Bioenergy Technology Market

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