scholarly journals The Effect of Renewable Energy Consumption on Sustainable Economic Development: Evidence from Emerging and Developing Economies

Energies ◽  
2019 ◽  
Vol 12 (15) ◽  
pp. 2954 ◽  
Author(s):  
Mun Ahmed ◽  
Koji Shimada
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Latin American ◽  
Developing Economies ◽  
Least Square ◽  
Renewable Energy Consumption ◽  
The World ◽  
The Caribbean

The objective of the paper is to figure out the nexus between renewable energy consumption and sustainable economic development for emerging and developing countries. In this paper, a panel of 30 emerging and developing countries is selected using the World Development Indicators (WDI) of the World Bank, Renewable Energy Country Attractiveness Index (RECAI) by Ernst and Young, and a random selection method based on the current trend of renewable energy consumption for five different regions of the world i.e., Asia, South-Asia, Latin America, Africa and the Caribbean. To achieve the objective, robust panel econometric models such as the Pesaran cross-section dependence (CD) test, second generation panel unit root test, e.g., cross-sectional augmented IPS test (CIPS) proposed by Pesran (2007), panel co-integration test, fully modified ordinary least square (FMOLS) and dynamic ordinary least square (DOLS) are applied to check the cross-sectional dependence, heterogeneity and long-term relationship among variables. The panel is strongly balanced and the findings suggest a significant long-run relationship between renewable energy consumption and economic growth for selected South Asian, Asian and most of the African countries (Ghana, Tunisia, South Africa, Zimbabwe and Cameroon). But for the Latin American and the Caribbean countries, economic growth depends on non-renewable energy consumption. Renewable energy consumption in the selected countries of these two regions are still at the initial stage. In case of the renewable energy consumption and CO 2 emissions nexus, for selected South Asian, Asian, Latin American and African countries both GDP and non-renewable energy consumption cause the increase of CO 2 emissions. For the Caribbean countries only non-renewable energy consumption causes the increase of CO 2 emissions. An important finding regarding renewable energy consumption-economic growth nexus indicates the existence of bi-directional causality. This supports the existence of a feedback hypothesis for the emerging and developing economies. In the case of renewable energy consumption- CO 2 emissions nexus, there exists unidirectional causality. This supports the existence of the conservation hypothesis, where CO 2 emissions necessitates the renewable energy consumptions. Based on the findings, the study proposes possible policy options. The countries, who have passed the take-off stage of renewable energy consumption, can take advanced policy initiatives e.g., feed-in tariff, renewable portfolio standard and green certificate for long-term economic development. Other countries can undertake subsidy, low interest loan and market development to facilitate the renewable energy investments.

scholarly journals Does Green Energy Complement Economic Growth for Achieving Environmental Sustainability? Evidence from Saudi Arabia

2020 ◽  
Vol 13 (1) ◽  
pp. 180
Author(s):  
Montassar Kahia ◽  
Anis Omri ◽  
Bilel Jarraya
Keyword(s):  
Economic Growth ◽  
Saudi Arabia ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Co2 Emissions ◽  
Environmental Sustainability ◽  
Least Square ◽  
Ekc Hypothesis ◽  
Renewable Energy Consumption ◽  
Ordinary Least Square

This study extends previous environmental sustainability literature by investigating the joint impact of economic growth and renewable energy on reducing CO2 emissions in Saudi Arabia over the period 1990–2016. Using the fully modified ordinary least-square (FMOLS) and dynamic ordinary least-square DOLS estimators, we find that economic growth increases CO2 emissions in all estimated models. Moreover, the validity of the environmental Kuznets curve (EKC) hypothesis is only supported for CO2 emissions from liquid fuel consumption. The invalidity of the EKC hypothesis in the most commonly used models implies that economic growth alone is not sufficient to enhance environmental quality. Renewable energy is found to have a weak influence on reducing the indicators of environmental degradation. We also find that the joint impact of renewable energy consumption and economic growth on the indicators of CO2 emissions is negative and insignificant for all the estimated models, meaning that the level of renewable energy consumption in Saudi Arabia is not sufficient to moderate the negative effect of economic growth on environmental quality. Implications for policy are also discussed.

scholarly journals How to coordinate the relationship between energy consumption’s structure transformation and green economic development: From the perspective of technological advancement

2020 ◽  
Author(s):  
Fangming Xie ◽  
Yali Liu ◽  
Fangyuan Guan ◽  
Ning Wang
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Production Efficiency ◽  
New Technologies ◽  
Technological Advancement ◽  
Structure Transformation ◽  
Renewable Energy Consumption ◽  
The Relationship

Abstract Background: Green economic development refers to reducing pollution emissions and increasing production efficiency while promoting economic growth. Although the transformation of energy consumption’s structure is “green," it may not promote green economic development due to the constraints of existing technical conditions. Thus, the development and use of renewable energy may be detrimental to production efficiency and economic growth. Therefore, the technological advancement approach that can help coordinate the relationship between energy consumption structural transformation and green growth should be identified. In addition, we should determine whether to develop new technologies or improve existing ones. Results: This paper uses the Global-Malmquist-Luenberger approach based on Slacks-Based Measure method to measure the levels of green economic development among the 27 member states of the European Union (excluding the Republic of Malta). Moreover, this study focuses on the impact of energy consumption’s structure transformation on green economic development through the threshold regression method. Empirical results reveal (1) the inverted N-shaped relationship between energy consumption’s structure transformation and green economic development under the existing technical conditions. The degree of energy consumption’s structure transformation can merely promote green economic development in the interval of 0.67–10.87. That is, the renewable energy consumption (% of total energy consumption) is less than 0.67% or greater than 10.87%, which is not conducive to green economic development. (2) Developing new technologies can stimulate the positive effect of energy consumption’s structure transformation on green economic development. However, the improvement of existing technologies fail to exhibit an effective impact on the relationship between energy consumption’s structure transformation and green economic development. (3) Coordinating the relationship between energy consumption’s structure transformation and green economic development can also be achieved by reducing the dependence of Gross Domestic Product (GDP) on fossil fuels. Conclusions: With the existing technical conditions, the blind development and use of renewable energy may not be conducive to green economic development. When the degree of energy consumption’s structure transformation exceeds an appropriate range, it will adversely affect green economic development. Therefore, in order to better coordinate the relationship between energy consumption’s structure transformation and green economic development, European Union member states, especially those with a high degree of energy consumption’s structure transformation, should paid more attention to develop new energy technologies rather than improve existing ones. In addition, to mediate the transformation of energy consumption’s structure that promotes green economic development, we must prioritize and adjust the industrial structure and rationally allocate resources to reduce the GDP’s on fossil energy prior to increasing the intensity of renewable energy consumption.

The impact of green finance, economic growth and energy usage on CO2 emission in Vietnam – a multivariate time series analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Quyen Ha Tran
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Economic Development ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Multivariate Time Series ◽  
Renewable Energy Consumption ◽  
Content Type ◽  
Green Finance ◽  
The Relationship

PurposeThis study aims to examine the relationship between green finance, economic growth, renewable energy consumption (energy efficiency), energy import and CO2 emission in Vietnam using multivariate time series analysis.Design/methodology/approachThe data were collected from 1986 to 2018 since Vietnam initiated the economic reforms, namely “Doi Moi” in 1986. The concept and methods of cointegration, Granger causality and error correction model (ECM) were employed to establish the relationship between the variables of interest.FindingsOur results confirmed the existence of cointegration among the variables. The Granger causality test revealed unidirectional causality running from renewable energy consumption to CO2 emission and green investment to CO2 emission.Originality/valueThis study results confirm the existence of cointegration among the variables. The results of the study imply that policies on economic development impose a significant impact on pollution in Vietnam. This study has described Vietnam, its economic development, green manufacturing practices, its environmental health and level of carbon dioxide emission which was enhanced due to COVID-19.

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.

Assessing the impact of transition from nonrenewable to renewable energy consumption on economic growth-environmental nexus from developing Asian economies

2021 ◽  
Vol 284 ◽  
pp. 111999 ◽  
Author(s):  
Muhammad Mohsin ◽  
Hafiz Waqas Kamran ◽  
Muhammad Atif Nawaz ◽  
Muhammed Sajjad Hussain ◽  
Abdul Samad Dahri
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Renewable Energy Consumption ◽  
Asian Economies ◽  
The Impact

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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