The causal relationship between renewable energy consumption and economic growth: evidence from Europe

Saad, Wadad; Ali, Tarig

doi:10.1007/s10098-017-1463-5

Cited by 118 publications

(55 citation statements)

References 40 publications

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“…As for the similarities, economic growth has a positive relationship with the energy transition, while CO 2 emissions negatively influence energy transition in all sample groups. The results, regarding the economic growth-energy transition linkage, is in line with Saidi and Hammam (2015); Saad and Taleb (2017), Adams et al (2018); Hoon Kang et al (2019), Diaz et al (2019) and Kouton (2020), who found a positive correlation between economic growth and moving from fossil fuels to renewables (energy transition). Our result is in contrast to Maji (2015) and Chen et al (2019), who proved a mixture of negative and positive relationships between green energy usage and economic growth.…”

Section: Concluding Remarks and Policy Recommendationssupporting

confidence: 82%

Analyzing Energy Transition Patterns in Asia: Evidence From Countries With Different Income Levels

Taghizadeh–Hesary¹,

Rasoulinezhad²

2020

Front. Energy Res.

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Energy transition as the issue of striving to use more environmentally friendly energy sources instead of fossil fuels is a crucial debate for scholars. A key point is how macroeconomic variables can accelerate the energy transition movement in different regions, which may lead to similarities in energy transition patterns among various regions. The main purpose of this study is to determine how energy transition patterns depend on economic variables in Asian economies, classifying based on their income level. To this end, we collected the related variables for 45 economies in Asia over the period 1993-2018 and conducted estimation using the generalized method of moments (GMM) approach. The major results revealed that economic growth has a positive relationship with the energy transition, while CO 2 emissions negatively influence energy transition. Furthermore, in both sub-sample groups (i.e., high and upper-middle-income and low and lower-middle-income groups) an increase in population lows the energy transition process. As an important recommendation, Asian economies with different income levels need different policies to improve and accelerate the energy transition movements. Especially in the developing and emerging economies that have higher economic growth rate and more energy demand, the governments need to implement various supportive policies for easing the access to electricity from green resources in line with the sustainable development goals (SDGs). This is more essential in the current low oil price era.

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Section: Concluding Remarks and Policy Recommendationssupporting

confidence: 82%

Analyzing Energy Transition Patterns in Asia: Evidence From Countries With Different Income Levels

Taghizadeh–Hesary¹,

Rasoulinezhad²

2020

Front. Energy Res.

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“…The authors [ 44 ] have analyzed the relationship between consumption of renewable energy and economic growth on both short and long run, concluding that while for the short run there is a uni-directional causality link between economic growth and renewable energy consumption, in the long run we may speak about a bi-directional link. Also [ 45 ] has empirically estimated the link between CO2 emissions, renewable energy and non-renewable energy and economic growth, concluding that the heightened renewable energy consumption had positively influenced economic growth, while conventional energy had no positive impact on real GDP, especially in developed countries.…”

Section: Literature Reviewmentioning

confidence: 99%

Renewable energy consumption and economic growth. Causality relationship in Central and Eastern European countries

et al. 2018

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The new European model stipulates the achievement of an inclusive, sustainable and intelligent economic growth. Increasing the share of renewable energy is one of the factors that improve the quality of economic growth, similar to research, development and investment in human capital. In this paper we tested the correlation between economic growth and renewable energy consumption for ten European Union (EU) member states from Central and Eastern Europe (CEE) in the period 1990–2014, using Auto-regressive and Distributed Lag (ARDL) modeling procedure, a technique that captures causal relationships both on a short run and on a long run. The short run perspective reveals the transition towards a new energy paradigm, while the long run approach corresponds to the long-term equilibrium of the analyzed factors. Our results shows that, in the short run, the Gross Domestic Product (GDP) and Renewable Energy Consumption (REC) dynamics are independent in Romania and Bulgaria, while in Hungary, Lithuania and Slovenia an increasing renewable energy consumption improves the economic growth. The hypothesis of bi-directional causality between renewable energy consumption and economic growth is validated in the long run for both the whole group of analyzed countries as well as in the case of seven CEE states which were studied individually. These results allow us to look into the feasibility of the Europe 2020 goals regarding the increase of energy efficiency and to propose public policies to achieve these goals.

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“…They also pointed out that the impact is more from new energy consumption on economic activities than that of traditional energy consumption. Saad and Taleb (2018) [23] pointed out that the impact of new energy consumption on economic growth is positive and the presence of uni-directional causality running from economic growth to new energy consumption in the short run, a bi-directional causal relationship between the variables in the long run. Ntanos et al (2018) [24] revealed that there is a correlation between economic growth and new energy consumption and fossil energy consumption.…”

Section: Literature Reviewmentioning

confidence: 99%

Threshold Effects of New Energy Consumption Transformation on Economic Growth

2018

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This study uses data from seven countries with high energy consumption levels in 1997–2016 (i.e., the US, China, Japan, Canada, South Korea, Germany, and France) to establish a panel threshold model and analyze the multiple threshold effects of new energy consumption transformation on economic growth. Research results show the non-linear impact of new energy consumption transformation on economic growth. On the one hand, the transformation of new energy consumption will occasionally bring economic costs, thereby resulting in a negative impact on economic growth. On the other hand, economic cost occasionally disappears, thereby resulting in the positive impact of the transformation of new energy consumption on economic growth. This study proposes that economic cost is affected by the levels of research and development (R&D), economic development, and traditional energy dependence, therefore, we use these three variables as threshold variables. Threshold variable is essential in a panel threshold model. The behavioral varies of model can be predicted when threshold variable is at different ranges of levels. In other words, the behavior of panel threshold model may change as the level of threshold variable changes. In particular, when the R&D level is used as a threshold variable, the impact of new energy consumption transformation on economic growth will change from negative to positive as the level of R&D increases. We present a similar conclusion when the level of economic development is used as a threshold variable. However, when the level of traditional energy dependence is used as the threshold variable, the impact of new energy consumption transformation on economic growth will change from positive to negative as the level of traditional energy dependence increases.

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The causal relationship between renewable energy consumption and economic growth: evidence from Europe

Cited by 118 publications

References 40 publications

Analyzing Energy Transition Patterns in Asia: Evidence From Countries With Different Income Levels

Analyzing Energy Transition Patterns in Asia: Evidence From Countries With Different Income Levels

Renewable energy consumption and economic growth. Causality relationship in Central and Eastern European countries

Threshold Effects of New Energy Consumption Transformation on Economic Growth

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