Does Renewable Energy Matter for Economic Growth in Central and Eastern European Countries? Empirical Evidence from Heterogeneous Panel Cointegration Analysis

AbstractThe aim of the paper is to provide empirical evidence in support of the relationship between renewable energy consumption and economic growth in eleven Central and Eastern European (CEE) countries over the period 1995-2015 within a multivariate panel data analysis. Based on World Bank data, the panel cointegration analysis reveals that renewable energy consumption and economic growth are positively associated in the long run in CEE countries. The heterogeneous panel causality test indicates a bi-directional causality relationship in support of the feedback hypothesis between economic growth and renewable energy consumption in Central and Eastern European countries.

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

PLoS ONE ◽

10.1371/journal.pone.0202951 ◽

2018 ◽

Vol 13 (10) ◽

pp. e0202951 ◽

Cited By ~ 21

Author(s):

Marius-Corneliu Marinaș ◽

Marin Dinu ◽

Aura-Gabriela Socol ◽

Cristian Socol

Keyword(s):

Economic Growth ◽

Renewable Energy ◽

Energy Consumption ◽

European Countries ◽

Eastern European ◽

Renewable Energy Consumption ◽

Causality Relationship ◽

Eastern European Countries

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Linking between Renewable Energy, CO2 Emissions, and Economic Growth: Challenges for Candidates and Potential Candidates for the EU Membership

Sustainability ◽

10.3390/su11061528 ◽

2019 ◽

Vol 11 (6) ◽

pp. 1528 ◽

Cited By ~ 32

Author(s):

Yuriy Bilan ◽

Dalia Streimikiene ◽

Tetyana Vasylieva ◽

Oleksii Lyulyov ◽

Tetyana Pimonenko ◽

...

Keyword(s):

Economic Growth ◽

Renewable Energy ◽

Energy Consumption ◽

Co2 Emissions ◽

Panel Cointegration ◽

Potential Candidate ◽

Total Energy Consumption ◽

Renewable Energy Consumption ◽

Eu Membership ◽

The Eu

This paper investigates the impact of renewable energy sources (RESs), CO2 emissions, macroeconomics, and the political stability in a country on the Gross Domestic Product (GDP). The authors analyse the dynamics of RESs use, CO2 emissions, and GDP development and also test the following hypotheses: (1) The country’s economic growth is related to the energy consumption, in terms of both human resources and capital; (2) the share of the renewable energy consumption of the total energy consumption has a positive impact on the economic growth; and (3) the share of the renewable energy consumption of the total energy consumption is unrelated to the economic growth. To test the above hypotheses, the authors use the modified Cobb-Douglas production function, which also considers RES production volumes, CO2 emissions, and economic growth. The study employs data between 1995 to 2015 from the candidate and potential candidate countries for the EU membership. The data are drawn from the World Bank and Eurostat. The analyses entail panel unit root tests, Pedroni panel cointegration tests, fully modified OLS (FMOLS), dynamic OLS (DOLS) panel cointegration techniques, and the Vector Error Correction model (VECM). The findings confirm the relationship between RESs, CO2 emissions, and the GDP. For the EU countries, RESs as human resources and capital have an impact on the GDP. Moreover, the results reveal a correction retraction when the economic growth leads to an increase in renewable energy consumption. The investigation also finds that candidate and potential candidate countries for the EU membership should foster renewable energy development. The authors conclude that developing affordable and effective instruments and mechanisms to boost the RES implementation is necessary to decrease the anthropogenic impact on the environment (in particular, decreasing CO2 emissions) without any attendant reduction in the economic growth.

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