scholarly journals How economic growth in Australia reacts to CO2 emissions, fossil fuels and renewable energy consumption

2018 ◽  
Vol 12 (4) ◽  
pp. 696-713 ◽  
Author(s):  
Patrícia H. Leal ◽  
Antonio Cardoso Marques ◽  
Jose Alberto Fuinhas
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Fossil Fuels ◽  
Renewable Energy Sources ◽  
Annual Data ◽  
Renewable Energy Consumption ◽  
Content Type ◽  
Distributed Lag ◽  
The Impact

Purpose Australia is one of the ten largest emitters of greenhouse gases but stands out from the others due to its economic growth without recession for 26 consecutive years. This paper aims to focus on the energy-growth nexus and the effects of energy consumption on the environment in Australia. Design/methodology/approach This analysis is performed using annual data from 1965 to 2015 and the autoregressive distributed lag model. Findings The paper finds empirical evidence of a trade-off between economic growth and carbon dioxide (CO2) intensity. The results show that increased gross domestic product (GDP) in Australia increased investment in renewable energy sources (RESs), although the renewable technology is limited and has no impact on reducing CO2 intensity in the long run. In contrast to investment in RES, fossil fuels, coal and oil, are decreased by GDP. However, oil consumption increased renewable energy consumption, and this reflects the pervading effect of the growing economy. Originality/value Overall, this paper contributes to the literature by analysing the behaviour of both energy consumption and the environment on the growing Australian economy. In addition, this paper goes further by studying the impact of economic growth on renewable and non-renewable energy consumption, as well as on CO2 emissions. The study is conducted on a single country for which literature is scarce, using a recent approach and a long time period.

Economic growth, renewable and nonrenewable energy consumption nexus in India

2020 ◽  
Vol 14 (4) ◽  
pp. 777-792 ◽  
Author(s):  
Shruti Shastri ◽  
Geetilaxmi Mohapatra ◽  
A.K. Giri
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Renewable Energy Consumption ◽  
Causality Test ◽  
Content Type ◽  
Long Run ◽  
The Impact ◽  
Asymmetric Causality ◽  
Nonrenewable Energy

Purpose The purpose of this paper is to examine the nexus among economic growth, nonrenewable energy consumption and renewable energy consumption in India over the period 1971-2017. Design/methodology/approach This study uses nonlinear autoregressive distributed lags model and asymmetric causality test to explore nonlinearities in the dynamic interaction among the variables. Findings The findings indicate that the impact of nonrenewable energy consumption and renewable energy consumption on the economic growth is asymmetric in both long run and short run. In long run, a positive shock in nonrenewable energy consumption and renewable energy consumption exerts a positive impact on growth. However, the negative shocks in nonrenewable energy consumption produce larger negative effects on the growth. The results of nonlinear causality test indicate a unidirectional causality from nonrenewable energy consumption and renewable energy consumption to economic growth and thus support “growth hypothesis” in context of India. Practical implications The findings imply that policy measures to discourage nonrenewable energy consumption may produce deflationary effects on economic growth in India. Further, the findings demonstrate the potential role of renewable energy consumption in promoting economic growth. Originality/value To the best of the authors’ knowledge, this study is the first attempt to explore nonlinearities in the relationship between economic growth and the components of energy consumption in terms of renewable and nonrenewable energy consumption.

scholarly journals Impact of Clean Energy on CO2 Emissions and Economic Growth within the Phases of Renewables Diffusion in Selected European Countries

Energies ◽  
2021 ◽  
Vol 14 (4) ◽  
pp. 812
Author(s):  
Mariola Piłatowska ◽  
Andrzej Geise
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Co2 Emissions ◽  
Clean Energy ◽  
Annual Data ◽  
Low Carbon ◽  
Renewable Energy Consumption ◽  
Two Phases ◽  
The Impact

This study explores the impact of clean energy and non-renewable energy consumption on CO2 emissions and economic growth within two phases (formative and expansion) of renewable energy diffusion for three selected countries (France, Spain, and Sweden). The vector autoregression (VAR) model is estimated on the basis of annual data disaggregated into quarterly data. The Granger causality results reveal distinctive differences in the causality patterns across countries and two phases of renewables diffusion. Clean energy consumption contributes to a decline of emissions more clearly in the expansion phase in France and Spain. However, this effect seems to be counteracted by the increases in emissions due to economic growth and non-renewable energy consumption. Therefore, clean energy consumption has not yet led to a decoupling of economic growth from emissions in France and Spain; in contrast, the findings for Sweden evidence such a decoupling due to the neutrality between economic growth and emissions. Generally, the findings show that despite the enormous growth of renewables and active mitigation policies, CO2 emissions have not substantially decreased in selected countries or globally. Focused and coordinated policy action, not only at the EU level but also globally, is urgently needed to overhaul existing fossil-fuel economies into low-carbon economies and ultimately meet the relevant climate targets.

scholarly journals Asymmetric impact of renewable and non-renewable energy on economic growth in Pakistan: New evidence from a nonlinear analysis

2020 ◽  
Vol 38 (5) ◽  
pp. 1946-1967
Author(s):  
Kashif Abbasi ◽  
Zhilun Jiao ◽  
Muhammad Shahbaz ◽  
Arman Khan
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Positive Impact ◽  
Renewable Energy Sources ◽  
Government Officials ◽  
Renewable Energy Consumption ◽  
Distributed Lag ◽  
Long Run ◽  
Asymmetric Impact

This paper explores the asymmetric relationship between renewable energy consumption, non-renewable energy, and terrorism on economic growth of Pakistan. We applied a novel econometric cointegration method known as a nonlinear autoregressive distributed lag modeling (NARDL). Our empirical findings indicate that positive and negative changes have a significant long-run asymmetric relationship between renewable energy, and terrorism on economic growth. We also found a negative and significant effect of non-renewable energy consumption on economic growth. To keep our environment clean and free of emissions, the study specifies policies that rely on renewable energy sources to boost economic growth. However, reduces terrorism has a positive impact on economic growth in the long-run and shows as an influential tool to combat terrorism in Pakistan. These novel results will help policy-makers and government officials to understand better the role of renewable energy and economic growth in Pakistan's development.

scholarly journals Medium- and High-Tech Export and Renewable Energy Consumption: Non-Linear Evidence from the ASEAN Countries

Energies ◽  
2021 ◽  
Vol 14 (15) ◽  
pp. 4419
Author(s):  
Cong Khai Dinh ◽  
Quang Thanh Ngo ◽  
Trung Thanh Nguyen
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Fixed Effects ◽  
Fossil Fuels ◽  
Energy Use ◽  
High Tech ◽  
Renewable Energy Consumption ◽  
Development Indicators ◽  
The Impact

Sustaining economic growth while reducing dependence on fossil fuels remains a challenge for our world to fight against climate change and therefore finding a way to promote economic growth and increase renewable energy use is needed. This paper uses a 22-year panel dataset (1994–2015) of 9 countries in the Association of Southeast Asian Nations provided by the World Bank World Development Indicators to examine the impact of medium- and high-tech export on renewable energy use. We employ a fixed-effects regression model with the Driscoll–Kraay nonparametric covariance matrix estimator to account for sectoral and temporal dependence. We also control for inflation, employment, population growth, and gross domestic product per capita in our estimations. Our results demonstrate a U-shaped association between medium- and high-tech export and renewable energy consumption of these economies. The results propose that enhancing medium- and high-tech export could be a feasible solution for promoting renewable energy consumption.

scholarly journals The Effect of Renewable and Nuclear Energy Consumption on Decoupling Economic Growth from CO2 Emissions in Spain

Energies ◽  
2020 ◽  
Vol 13 (9) ◽  
pp. 2124 ◽  
Author(s):  
Mariola Piłatowska ◽  
Andrzej Geise ◽  
Aneta Włodarczyk
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Co2 Emissions ◽  
Carbon Dioxide Emissions ◽  
Nuclear Energy ◽  
Green Energy ◽  
Annual Data ◽  
Renewable Energy Consumption ◽  
The Impact

This study examines the relationship between renewable and nuclear energy consumption, carbon dioxide emissions and economic growth by using the Granger causality and non-linear impulse response function in a business cycle in Spain. We estimate the threshold vector autoregression (TVAR) model on the basis of annual data from the period 1970–2018, which are disaggregated into quarterly data to obtain robust empirical results through avoiding a sample size problem. Our analysis reveals that economic growth and CO2 emissions are positively correlated during expansions but not during recessions. Moreover, we find that rising nuclear energy consumption leads to decreased CO2 emissions during expansions, while the impact of increasing renewable energy consumption on emissions is negative but insignificant. In addition, there is a positive feedback between nuclear energy consumption and economic growth, but unidirectional positive causality running from renewable energy consumption to economic growth in upturns. Our findings do indicate that both nuclear and renewable energy consumption contribute to a reduction in emissions; however, the rise in economic activity, leading to a greater increase in emissions, offsets this positive impact of green energy. Therefore, a decoupling of economic growth from CO2 emissions is not observed. These results demand some crucial changes in legislation targeted at reducing emissions, as green energy alone is insufficient to reach this goal.

Does renewable energy promote green economic growth in OECD countries?

2020 ◽  
Vol 11 (4) ◽  
pp. 771-798 ◽  
Author(s):  
Dilvin Taşkın ◽  
Gülin Vardar ◽  
Berna Okan
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Trade Openness ◽  
Green Economy ◽  
Renewable Energy Consumption ◽  
Content Type ◽  
Long Run ◽  
Wide Range ◽  
The Impact

Purpose The development of green economy is of academic and policy importance to governments and policymakers worldwide. In the light of the necessity of renewable energy to sustain green economic growth, this study aims to examine the relationship between renewable energy consumption and green economic growth, controlling for the impact of trade openness for Organization for Economic Co-operation and Development countries over the period 1990-2015, within a multivariate panel data framework. Design/methodology/approach To investigate the long-run relationship between variables, panel cointegration tests are performed. Panel Granger causality based on vector error correction models is adopted to understand the short- and long-run dynamics of the data. Furthermore, ordinary least square (OLS), dynamic OLS and fully modified OLS methods are used to confirm the long-run elasticity of green growth for renewable energy consumption and trade openness. Moreover, system generalized method of moment is applied to eliminate serial correlation, heteroscedasticity and endogeneity problems. The authors used the panel Granger causality test developed by Dumitrescu and Hurlin (2012) to infer the directionality of the causal relationship, allowing for both the cross-sectional dependence and heterogeneity. Findings The results suggest that renewable energy consumption and trade openness exert positive effects on green economic growth. The results of long-run estimates of green economic growth reveal that the long-run elasticity of green economic growth for trade openness is much greater than for renewable energy consumption. The estimated results of the Dumitrescu and Hurlin (2012) test reveal bidirectional causality between green economic growth and renewable energy consumption, providing support for the feedback hypothesis. Practical implications This paper provides strong evidence of the contribution of renewable energy consumption on green economy for a wide range of countries. Despite the costs of establishing renewable energy facilities, it is evident that these facilities contribute to the green growth of an economy. Governments and public authorities should promote the consumption of renewable energy and should have a support policy to promote an active renewable energy market. Furthermore, the regulators must constitute an efficient regulatory framework to favor the renewable energy consumption. Social implications Many countries focus on increasing their GDP without taking the environmental impacts of the growth process into account. This paper shows that renewable energy consumption points to the fact that countries can still increase their economic growth with minimal damage to environment. Despite the costs of adopting renewable energy technologies, there is still room for economic growth. Originality/value This paper provides evidence on the contribution of renewable energy consumption on green economic growth for a wide range of countries. The paper focuses on the impact of renewable energy on economic growth by taking environmental degradation into consideration on a wide scale of countries.

scholarly journals THE IMPACT OF RENEWABLE ENERGY CONSUMPTION ON CARBON DIOXIDE EMISSIONS - THE CASE OF SOUTH AMERICAN COUNTRIES

2018 ◽  
Vol 7 (2) ◽  
Author(s):  
Matheus Da Costa Koengkan ◽  
José Alberto Fuinhas
Keyword(s):  
Carbon Dioxide ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Carbon Dioxide Emissions ◽  
Fossil Fuels ◽  
South American ◽  
Renewable Energy Consumption ◽  
Distributed Lag ◽  
Long Run ◽  
The Impact

The impact of renewable energy consumption on the carbon dioxide emissions was analyzed for a panel of ten South American countries in a period from 1980 to 2012. The Autoregressive Distributed Lag Methodology was used in order to decompose the total effect of renewable energy consumption on the carbon dioxide emissions in its short- and long-run components. The results indicate that the consumption of renewable energy reduce the carbon dioxide emissions in -0.0420 % when the consumption of alternative sources increases in 1% in short-run. The empirical evidence shows that the renewable consumption plays an important role in reducing CO2 emissions and that the economic growth and energy consumption in the South American countries are still based on fossil fuels.  Keywords: Environmental, Energy economics, Econometric.

scholarly journals Empirical Research on the Relationship amongst Renewable Energy Consumption, Economic Growth and Foreign Direct Investment in Kazakhstan and Uzbekistan

Energies ◽  
2021 ◽  
Vol 14 (2) ◽  
pp. 332
Author(s):  
Janusz Grabara ◽  
Arsen Tleppayev ◽  
Malika Dabylova ◽  
Leonardus W. W. Mihardjo ◽  
Zdzisława Dacko-Pikiewicz
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Direct Investment ◽  
Renewable Energy Sources ◽  
Energy Sources ◽  
Renewable Energy Consumption ◽  
Integration Test ◽  
The Relationship

In this contemporary era, environmental problems spread at different levels in all countries of the world. Economic growth does not just depend on prioritizing the environment or improving the environmental situation. If the foreign direct investment is directed to the polluting industries, they will increase pollution and damage the environment. The purpose of the study is to consider the relationship between foreign direct investment in Kazakhstan and Uzbekistan and economic growth and renewable energy consumption. The study is based on data obtained from 1992 to 2018. The results show that there is a two-way link between foreign direct investment and renewable energy consumption in the considered two countries. The Granger causality test approach is applied to explore the causal relationship between the variables. The Johansen co-integration test approach is also employed to test for a relationship. The empirical results verify the existence of co-integration between the series. The main factors influencing renewable energy are economic growth and electricity consumption. To reduce dependence on fuel-based energy sources, Kazakhstan and Uzbekistan need to attract energy to renewable energy sources and implement energy efficiency based on rapid progress. This is because renewable energy sources play the role of an engine that stimulates the production process in the economy for all 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.

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