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

2015 ◽  
Vol 18 (6) ◽  
pp. 284-291 ◽  
Author(s):  
Sangmin Cho ◽  
Eunnyeong Heo ◽  
Jihyo Kim
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Causal Relationship ◽  
Developed Countries ◽  
Less Developed Countries ◽  
Renewable Energy Consumption

scholarly journals The dynamics of CO2 emissions, energy consumption and economic development: Evidence from the top 28 greenhouse gas emitters

2021 ◽  
Author(s):  
Lei Jin ◽  
Yuan-hua Chang ◽  
Meng Wang ◽  
Xin-zhu Zheng ◽  
Jian-xun Yang ◽  
...  
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Causal Relationship ◽  
Carbon Emissions ◽  
Carbon Emission ◽  
Developed Countries ◽  
Renewable Energy Consumption ◽  
The Relationship

Abstract Previous studies have done more research on the relationship between carbon emission reduction, energy consumption and economic growth in specific countries or regions, which rarely consider the issue of heterogeneity between countries or regions, and also lack the refinement of energy consumption categories. Using panel data from 2000 to 2017,this paper divided the top 28 global carbon emission countries into developed countries and developing countries, and explores cointegration and causality between renewable energy consumption,non-renewable energy consumption, economic growth and carbon emission. Results suggested that there is a two-way causal relationship between carbon emissions and economic growth in all economies. There is a two-way causal relationshipbetween economic growth in developed countries and consumption of renewable and non-renewable energy, while there is no significant relationship between economic growth and energy consumption in developing countries. There is a two-way causal relationship between carbon emissions and renewable energyin all economies, but there are significant differences; there is a two-way causal relationship between carbon emissions in developed countries and non-renewable energy, and only one-way causality exists in developing countries.

scholarly journals A Review on Energy and Renewable Energy Policies in Iran

2021 ◽  
Vol 13 (13) ◽  
pp. 7328
Author(s):  
Saeed Solaymani
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Causal Relationship ◽  
Energy Security ◽  
Fossil Fuels ◽  
Agricultural Products ◽  
Energy Resources ◽  
Causality Analysis ◽  
Renewable Energy Consumption

Iran, endowed with abundant renewable and non-renewable energy resources, particularly non-renewable resources, faces challenges such as air pollution, climate change and energy security. As a leading exporter and consumer of fossil fuels, it is also attempting to use renewable energy as part of its energy mix toward energy security and sustainability. Due to its favorable geographic characteristics, Iran has diverse and accessible renewable sources, which provide appropriate substitutes to reduce dependence on fossil fuels. Therefore, this study aims to examine trends in energy demand, policies and development of renewable energies and the causal relationship between renewable and non-renewable energies and economic growth using two methodologies. This study first reviews the current state of energy and energy policies and then employs Granger causality analysis to test the relationships between the variables considered. Results showed that renewable energy technologies currently do not have a significant and adequate role in the energy supply of Iran. To encourage the use of renewable energy, especially in electricity production, fuel diversification policies and development program goals were introduced in the late 2000s and early 2010s. Diversifying energy resources is a key pillar of Iran’s new plan. In addition to solar and hydropower, biomass from the municipal waste from large cities and other agricultural products, including fruits, can be used to generate energy and renewable sources. While present policies indicate the incorporation of sustainable energy sources, further efforts are needed to offset the use of fossil fuels. Moreover, the study predicts that with the production capacity of agricultural products in 2018, approximately 4.8 billion liters of bioethanol can be obtained from crop residues and about 526 thousand tons of biodiesel from oilseeds annually. Granger’s causality analysis also shows that there is a unidirectional causal relationship between economic growth to renewable and non-renewable energy use. Labor force and gross fixed capital formation cause renewable energy consumption, and nonrenewable energy consumption causes renewable energy consumption.

scholarly journals Threshold Effect of Economic Growth on Energy Intensity—Evidence from 21 Developed Countries

Energies ◽  
2021 ◽  
Vol 14 (14) ◽  
pp. 4199
Author(s):  
Jinjin Zhou ◽  
Zenglin Ma ◽  
Taoyuan Wei ◽  
Chang Li
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Urban Population ◽  
Energy Intensity ◽  
Developed Countries ◽  
Renewable Energy Consumption ◽  
Tertiary Industry ◽  
D Investment ◽  
Threshold Point

Based on threshold regression models, this paper analyzes the effect of economic growth on energy intensity by using panel data from 21 developed countries from 1996 to 2015. Results show that a 1% increase in GDP per capita can lead to a 0.62–0.78% reduction in energy intensity, implying economic growth can significantly reduce energy intensity. The extent of the reduction in energy intensity varies depending on the economic development stages represented by key influencing factors including energy mix in consumption, urbanization, industrial structure, and technological progress. Specifically, the reduction in energy intensity due to economic growth can be enhanced with relatively more renewable energy consumption and more urban population until a threshold point, where the enhancement disappears. On the other hand, the extent of the energy intensity reduction due to economic growth can be weakened with relatively more tertiary industry activities and more research and development (R&D) investment in an economy until a threshold point, where the weakening cannot continue. However, compared to the early stages represented by the low ends of renewable energy consumption, urban population, tertiary industry activities, and R&D investment, the later stages represented by the high ends of these key factors after a threshold show the weakened effect of economic growth on the decline of energy intensity. Hence, when an economy is well-developed, policy makers are advised to put fewer expectations on the role of economic growth to reduce energy intensity, while pursuing relatively cleaner energy, greater urbanization, more tertiary industry activities, and advanced technologies.

scholarly journals The Causal Relationship between Renewable Energy Consumption, Economic Growth and Carbon Dioxide Emissions: Evidence from Middle East and North Africa

2015 ◽  
Author(s):  
Ebru Çağlayan Akay ◽  
Raziya Abdiyeva ◽  
Zamira Oskonbaeva
Keyword(s):  
Economic Growth ◽  
Carbon Dioxide ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Middle East ◽  
Causal Relationship ◽  
North Africa ◽  
Carbon Dioxide Emissions ◽  
Renewable Energy Consumption ◽  
Panel Vector Autoregression

Renewable energy plays a crucial role in increasing economic growth while reducing carbon dioxide emissions. The aim of this study is to examine the interaction between renewable energy consumption, economic growth and carbon dioxide emissions for selected Middle East and North Africa countries. For this aim, panel vector autoregression approach are used in the study. The annual data used in this study cover the period from 1988 to 2010 for Middle East and North Africa countries. Firstly, second generation unit root test are used to investigate stationarity properties of the variables and second generation panel cointegration test is applied to the data under consideration because of the cross-sectional dependence. Then a panel causality approach is proposed to examine the causal relationship between the variables. Finally, panel vector autoregression model, impulse-response and variance decomposition analysis are applied using generalized moment methods. The finding of this study shows that there is a bi-directional causality between growth and renewable energy consumption, which is consistent with the feedback hypothesis in terms of the energy consumption-growth nexus. It is found the evidence of unidirectional causality from carbon dioxide emissions to renewable energy consumption and from growth to carbon dioxide emissions. It is also found that the responses of growth to a shock of energy consumption are positive and the impact of renewable energy consumption on carbon dioxide emissions is negative.

scholarly journals Comparative analysis of energy consumption, CO2 emissions and economic growth: evidence for OECD selected countries

2016 ◽  
Vol 4 (2) ◽  
pp. 114
Author(s):  
Samia Gmidene ◽  
Saida Zaidi ◽  
Sonia Zouari Ghorbel
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Comparative Analysis ◽  
Causal Relationship ◽  
Co2 Emissions ◽  
Nuclear Energy ◽  
Renewable Energy Consumption ◽  
Long Run ◽  
Short Run

The main purpose of this study is to investigate the causal relationship among renewable energy, nuclear energy consumption, economic growth, and CO2 emissions for selected OECD countries over the period 1980 to 2013. All variables are found to be cointgrated.Results of Granger causality show long-run relationship from GDP, renewable energy consumption and nuclear energy consumption to CO2 emissions, from CO2 emissions, GDP, to renewable energy consumption, from emissions, GDP to renewable energy, and from CO2 emissions GDP and nuclear energy consumption.In short run, results show that there exists bidirectional causality between GDP and CO2 emissions, and unidirectional causality running from renewable energy consumption to GDP. Also unidirectional causality running from renewable energy consumption to CO2 emissions without feedback but no causality running from nuclear energy consumption to CO2 emissions was found. This evidence suggests that renewable energy can help to mitigate CO2 emissions, but so far, nuclear energy consumption has not reached a level where it can CO2 emissions.

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