Causal dynamics between renewable energy consumption and economic growth in South Korea: Empirical analysis and policy implications

2018 ◽  
Vol 29 (7) ◽  
pp. 1298-1315 ◽  
Author(s):  
Seong-Hoon Lee ◽  
Yonghun Jung
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
South Korea ◽  
Policy Implications ◽  
Renewable Energy Consumption ◽  
Vector Error Correction ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Causality Tests

This paper examines the causal relationship between renewable energy consumption and economic growth in South Korea using a framework of the conventional neo-classical production function of capital, labor, and renewable energy. We use cointegration technique of the autoregressive distributed lag bounds test and vector error correction mechanism causality tests to determine the econometric relationship, using data for the period 1990–2012; the results support the conservation hypothesis for South Korea. The results of the autoregressive distributed lag bounds test show that renewable energy consumption has a negative effect on economic growth, and the results of a vector error correction mechanism causality tests indicate a unidirectional relationship from economic growth to renewable energy consumption. The empirical results imply that economic growth is a direct driver expanding renewable energy use. In terms of policy implications, it is best for policy makers to focus on overall economic growth rather than expanding renewable energy to drive economic growth.

scholarly journals The Effect of Renewable Energy Consumption on Economic Growth in Croatia

2021 ◽  
Vol 24 (1) ◽  
pp. 113-126
Author(s):  
Sonia Pearson
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Renewable Energy Consumption ◽  
Energy Investment ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Renewable Energy Investment ◽  
The Empirical Analysis

Abstract This paper investigates the effect of renewable energy on economic growth in Croatia for the period 1996-2018. The Autoregressive Distributed Lag (ARDL) technique is used to find the long run relationships between renewable energy, energy consumption and economic growth. The empirical analysis indicates that renewable energy has a positive and significant effect on economic growth in the short and long run. These findings indicate that the Croatian government can continue to boost renewable energy investment without impeding economic growth.

scholarly journals The Nexus between Energy Consumption, Biodiversity, and Economic Growth in Lancang-Mekong Cooperation (LMC): Evidence from Cointegration and Granger Causality Tests

2019 ◽  
Vol 16 (18) ◽  
pp. 3269 ◽  
Author(s):  
Liu ◽  
Liang
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Fossil Fuels ◽  
Policy Implications ◽  
Indochina Peninsula ◽  
Dominant Position ◽  
Fossil Energy ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Causality Tests

This work is proposed to examine the relationships between energy consumption, biodiversity, and economic growth for China and five countries in the Indochina Peninsula, which are Cambodia, Laos, Myanmar, Thailand, and Vietnam, who also belong to Lancang-Mekong Cooperation, for the time span from 1991 to 2014. For this purpose, this work adopted autoregressive distributed lag (ARDL) through a dynamic simulation process. The estimation outcomes indicate that the nexus of the economic growth and energy consumption are diversified in fossil energy consumption and renewable consumption, respectively. The results are consistent with the fact that renewable energy is an alternative to fossil fuels, and traditional energy is still in the dominant position. This work is expected to serve as a first-hand examination on Lancang-Mekong Cooperation by adding innovative perspectives into existing research. Meanwhile, policy implications will also be discussed in this work.

scholarly journals CO2 Emissions, Energy Consumption, and Economic Growth: New Evidence in the ASEAN Countries

2019 ◽  
Vol 12 (3) ◽  
pp. 145 ◽  
Author(s):  
Vo ◽  
Vo ◽  
Le
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Granger Causality ◽  
Co2 Emissions ◽  
Causal Effect ◽  
The Philippines ◽  
Policy Implications ◽  
Renewable Energy Consumption ◽  
Long Run

The members of the Association of Southeast Asian Nations (ASEAN) have made several attempts to adopt renewable energy targets given the economic, energy-related, environmental challenges faced by the governments, policy makers, and stakeholders. However, previous studies have focused limited attention on the role of renewable energy when testing the dynamic link between CO2 emissions, energy consumption and renewable energy consumption. As such, this study is conducted to test a common hypothesis regarding a long-run environmental Kuznets curve (EKC). The paper also investigates the causal link between carbon dioxide (CO2) emissions, energy consumption, renewable energy, population growth, and economic growth for countries in the region. Using various time-series econometrics approaches, our analysis covers five ASEAN members (including Indonesia, Myanmar, Malaysia, the Philippines, and Thailand) for the 1971–2014 period where required data are available. Our results reveal no long-run relationship among the variables of interest in the Philippines and Thailand, but a relationship does exist in Indonesia, Myanmar, and Malaysia. The EKC hypothesis is observed in Myanmar but not in Indonesia and Malaysia. Also, Granger causality among these important variables varies considerably across the selected countries. No Granger causality among carbon emissions, energy consumption, and renewable energy consumption is reported in Malaysia, the Philippines, and Thailand. Indonesia experiences a unidirectional causal effect from economic growth to renewable energy consumption in both short and long run and from economic growth to CO2 emissions and energy consumption. Interestingly, only Myanmar has a unidirectional effect from GDP growth, energy consumption, and population to the adoption of renewable energy. Policy implications have emerged based on the findings achieved from this study for each country in the ASEAN region.

scholarly journals The Financial Development-Renewable Energy Consumption Nexus in the Case of Azerbaijan

Energies ◽  
2020 ◽  
Vol 13 (23) ◽  
pp. 6265
Author(s):  
Shahriyar Mukhtarov ◽  
Sugra Humbatova ◽  
Natig Gadim-Oglu Hajiyev ◽  
Sannur Aliyev
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Financial Development ◽  
Time Series Data ◽  
Policy Implications ◽  
Small Samples ◽  
Series Data ◽  
Energy Prices ◽  
Renewable Energy Consumption

This article analyzed the relationship between financial development, renewable energy consumption, economic growth, and energy prices in Azerbaijan by employing time series data for the time span of 1993–2015. The autoregressive distributed lagged (ARDL) technique was applied in empirical estimations, because it performs better than all the alternative techniques in small samples, which was the case here in this article. The results of estimation found that there is a positive and statistically significant influence of financial development and economic growth on renewable energy consumption, whereas the prices of energy proxied by CPI have an adverse impact on renewable energy consumption in Azerbaijan. Also, estimation results demonstrated that a 1% rise in financial development, proxied by domestic credit as a percentage of GDP, and economic growth increase renewable energy consumption by 0.16% and 0.60%, respectively. The different financial development impacts on renewable energy consumption and related policy implications were also introduced.

scholarly journals Renewable Energy and Economic Growth: Evidence from European Countries

2018 ◽  
Vol 10 (8) ◽  
pp. 2626 ◽  
Author(s):  
Stamatios Ntanos ◽  
Michalis Skordoulis ◽  
Grigorios Kyriakopoulos ◽  
Garyfallos Arabatzis ◽  
Miltiadis Chalikias ◽  
...  
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Renewable Energy Sources ◽  
European Countries ◽  
Energy Sources ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Fixed Capital Formation

This paper aims at examining the relationship between energy consumption deriving from renewable energy sources, and countries’ economic growth expressed as GDP per capita concerning 25 European countries. The used dataset involves European countries’ data for the period from 2007 to 2016. The statistical analysis is based on descriptive statistics, cluster analysis, and autoregressive distributed lag (ARDL), and reveals that all variables are related; this suggests a correlation between the dependent variable of GDP and the independents of renewable energy sources (RES) and Non-RES energy consumption, gross fixed capital formation, and labor force in the long-run. Furthermore, the results show that there is a higher correlation between RES’ consumption and the economic growth of countries of higher GDP than with those of lower GDP. The obtained results are consistent with other papers reviewed in this study.

scholarly journals Financial Development, Clean Energy, and Human Capital: Roadmap towards Sustainable Growth in América Latina

Energies ◽  
2021 ◽  
Vol 14 (13) ◽  
pp. 3763
Author(s):  
Pablo Ponce ◽  
José Álvarez-García ◽  
Johanna Medina ◽  
María de la Cruz del Río-Rama
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Financial Development ◽  
Clean Energy ◽  
Sustainable Growth ◽  
Policy Implications ◽  
Renewable Energy Consumption

The consumption of renewable energy has become a substitute for fossil fuels to mitigate environmental degradation. However, this substitution of energy raises many questions regarding its possible impact on economic growth. In this context, this research aims to examine the long-term relationship between economic growth and financial development, non-renewable energy, renewable energy, and human capital in 16 Latin American countries. Panel data techniques during the period 1988–2018 and statistical information compiled by the World Bank and Penn Word Table databases were used. Second-generation econometric techniques (cross-sectionally augmented Dickey–Fuller (CADF) and cross-sectionally augmented IPS (CIPS) were used in the work methodology, which allow the presence of cross-sectional dependence between sections to be controlled. The main results indicate that there is a long-term equilibrium relationship between financial development, non-renewable energy consumption, renewable energy consumption, human capital, and economic growth. The results show that the consumption of renewable energy does not compromise economic growth; the 1% increase in renewable energy consumption is related to the 1% increase in economic growth. The policy implications suggest some measures to ensure economic growth considering the role of green energy and human capital.

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 Green Energy, Economic Growth and Environmental Quality Nexus in Saudi Arabia

2021 ◽  
Vol 13 (3) ◽  
pp. 1264
Author(s):  
Montassar Kahia ◽  
Anis Omri ◽  
Bilel Jarraya
Keyword(s):  
Economic Growth ◽  
Saudi Arabia ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Co2 Emissions ◽  
Environmental Quality ◽  
Green Energy ◽  
Policy Implications ◽  
Equation Modeling ◽  
Renewable Energy Consumption

This article extends the previous studies on environmental economics literature by examining a possible relationship between economic growth, green energy, and environmental quality. Specifically, this article investigated the three-way linkage between economic growth, renewable energy, and environmental quality in the case of Saudi Arabia using the simultaneous equation modeling approach over the period of 1990–2016. The following are the main findings obtained: (i) a unidirectional causal impact of economic growth on renewable energy consumption was found, confirming the conservation hypothesis; (ii) bidirectional relationships between economic growth and CO2 emissions and between CO2 emissions and renewable energy consumption were also found; (iii) the failure of renewable energy in Saudi Arabia to close the gap between growing the economy and protecting the environment in Saudi Arabia; (iv) the environmental Kuznets curve (EKC) hypothesis was supported. Policy implications are also discussed.

scholarly journals Income, Coal Consumption, And The Environmental Kuznets Curve In Vietnam

2021 ◽  
Author(s):  
Nhan Dang Tran ◽  
Naresh Chandra Sahu
Keyword(s):  
Renewable Energy ◽  
Energy Consumption ◽  
Environmental Kuznets Curve ◽  
Policy Implications ◽  
Energy Structure ◽  
Kuznets Curve ◽  
Coal Consumption ◽  
Renewable Energy Consumption ◽  
Distributed Lag ◽  
The One

Abstract While coal leads energy structure in a rapid growth economy like Vietnam, there exist efforts to increase the use of renewable energy and at the same time to reduce greenhouse gas emissions. This paper aims to investigate whether there is an inverted U environmental Kuznets curve (EKC) relation between income and coal consumption from 1984 to 2019 using the nonlinear autoregressive distributed lag (NARDL) framework. We find that the income elasticities of coal consumption are larger than unity and increase monotonically with income. It thus reveals that the income-coal consumption relationship resembles an upward-sloping curve instead of an inverted U-shaped curve. We also find that coal consumption reduces with the one percent increase in the share of renewable energy consumption by less than it increases with the one percent decrease in the share of renewable energy consumption. Despite this, it indicates that the substitution of renewable energy for coal seems more substantial with policy improvements. Moreover, we find that the quantity of coal consumed grows with positive oil price shocks. It suggests that rising oil prices play an undesirable role in reducing coal consumption and associated emissions. Finally, the study provides policy implications for interventions to achieve committed emission targets.

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