Time-varying causality between renewable and non-renewable energy consumption and real output: Sectoral evidence from the United States

2021 ◽  
Vol 149 ◽  
pp. 111326
Author(s):  
Furkan Emirmahmutoglu ◽  
Zulal Denaux ◽  
Mert Topcu
Keyword(s):  
United States ◽  
Renewable Energy ◽  
Energy Consumption ◽  
The United States ◽  
Time Varying ◽  
Real Output ◽  
Renewable Energy Consumption

Renewable and non-renewable energy consumption and economic growth in the US: A Markov-Switching VAR analysis

2020 ◽  
pp. 0958305X2094403
Author(s):  
Emrah Ismail Cevik ◽  
Durmuş Çağrı Yıldırım ◽  
Sel Dibooglu
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Energy Demand ◽  
Fossil Fuels ◽  
The United States ◽  
Renewable Energy Consumption ◽  
Causality Test ◽  
Long Run ◽  
The Us

We examine the relationship between renewable and non-renewable energy consumption and economic growth in the United States. While the regime-dependent Granger causality test results for the non-renewable energy consumption and economic growth suggest bi-directional causality in both regimes, we cannot validate any causality between renewable energy consumption and economic growth. The US meets its energy demand from non-renewable sources; as such, renewable energy consumption does not seem to affect economic growth. Given the efficiency and productivity of renewable energy investments, we conclude that it is worthwhile to consider renewable energy inputs to replace fossil fuels given potential benefits in terms of global warming and climate change concerns. In this regard, increasing the R&D investments in the renewable energy sectors, increases in productivity and profitability of renewable energy investments are likely to accrue benefits in the long run.

Sign in / Sign up

Export Citation Format

Share Document