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 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 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 Renewable Energy Consumption and Local Environmental Effects for Economic Growth: The Role of Financial Development and Foreign Direct Investment

2021 ◽  
Author(s):  
Itbar khan ◽  
lei han ◽  
Hayat khan
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Financial Development ◽  
Environmental Quality ◽  
Low Income ◽  
Carbon Emission ◽  
Renewable Energy Consumption ◽  
Middle Income ◽  
Income Groups

Abstract The use of renewable energy improves environmental quality by reducing carbon emission and influence economics growth where carbon emission also effect economic growth of a country. The economic theory of tourism also indicates that tourism development enhance economic growth though spillovers as well contribute to climate change. The inflow of FDI and financial development enhance economic growth however its also effect environmental quality. Based on the ongoing debate, the present research trying attempts to explore the effect of CO2 emission and renewable energy consumption, FDI and financial development on economic growth in different income grouped countries to know whether these impacts are the same for the low income, middle income and high income countries on economic growth? Using panel data for high income, low income & middle income countries for the period of 1980–2018, the current study found that all variables effect economic growth significantly where FDI and carbon emission are positive while renewable energy consumption and financial development are negative for economic growth in the whole sample while its differ in the income groups. These studies have shown that these variables are not the same as the economic growth of economic growth and different income groups are not the same, but it changes. In addition, the foundation of this study has a great deal of recommendations for income Group economic decision make-up.

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.

Impact of Globalization and Renewable Energy Consumption on Environmental Degradation: A Lesson for South Africa

2021 ◽  
Vol 11 (1) ◽  
pp. 145-155
Author(s):  
Seun Damola Oladipupo ◽  
Husam Rjoub ◽  
Dervis Kirikkaleli ◽  
Tomiwa Sunday Adebayo
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Co2 Emissions ◽  
Environmental Degradation ◽  
Energy Use ◽  
Sustainable Growth ◽  
Renewable Energy Consumption ◽  
Nonrenewable Energy

South Africa is one of Africa's most polluted countries, with rising CO2 emissions posing a threat. South Africa must discover ways of minimizing pollution and take necessary steps before it is too late in order to achieve sustainable growth. For this purpose, this research assesses the ecological consequences of globalization, nonrenewable energy use, economic growth and renewable energy consumption in South Africa. The study leverages on the non-linearity advantages of the novel quantile on quantile regression (QQR) method for a robust analysis as opposed to the use of conventional linear approaches, thereby overcoming conspicuous shortfalls in extant studies, while offering a detailed explanation of the overall dependency structure between CO2 emissions and globalization, nonrenewable energy use and renewable energy use using a dataset covering the period between 1970 and 2018. The outcomes suggest that nonrenewable energy use, globalization, and economic growth contribute to environmental degradation in the majority of the quantiles, while the effect of renewable energy use on CO2 is not strong at all quantiles. The study highlights that economic expansion, nonrenewable energy use and globalization play key roles in in mitigating environmental sustainability in South Africa, while renewable energy is not sufficient to meet environmental requirements.

Can conventional energy be replaced by renewable energy without harming economic growth in non-oil-MENA? Evidence from Granger causality in VECM

2019 ◽  
Vol 15 (2) ◽  
pp. 159-168
Author(s):  
Badry Hechmy
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Granger Causality ◽  
Renewable Energy Consumption ◽  
Causality Test ◽  
Content Type ◽  
Investigation Methods ◽  
The Relationship

Purpose The purpose of this paper is to examine the relationship between renewable energy consumption and economic growth in non-oil countries in the Middle East and North Africa (non-oil-MENA) during the period from 2000 to 2014. The Pedroni (2000) test shows that there is a long-term cointegration relationship between those variables; however, the Granger causality test in the vector error correction model (VECM) shows that this relationship is bidirectional in the short and long term. Thus, to ensure sustainable economic growth without pollution and to reduce dependence on abroad, renewable energies can be chosen as substitutes for conventional energies in the non-oil-MENA countries. Design/methodology/approach First, LLC and IPS unit root tests are used to test the variables stationarity; and, second, Pedroni panel cointegration and Engle–Granger causality by VECM analysis are used to check the relationship between the studied variables. Findings Empirical results show that the renewable energy consumption and economic growth are cointegrated and that there are two-way causal relationships between them in the long and in the short term. These countries must therefore encourage the consumption of renewable energy instead of traditional energy to reduce their dependence on energy from abroad and CO2 pollution. Originality/value The originality of this work lies in the measurements of the study variables and the empirical investigation methods used.

scholarly journals Forest Conservation and Renewable Energy Consumption: An ARDL Approach

Forests ◽  
2021 ◽  
Vol 12 (2) ◽  
pp. 255
Author(s):  
Pablo Ponce ◽  
María de la Cruz Del Río-Rama ◽  
José Álvarez-García ◽  
Cristiana Oliveira
Keyword(s):  
Renewable Energy ◽  
Energy Consumption ◽  
Low Income ◽  
Forest Cover ◽  
Clean Energy ◽  
Causal Link ◽  
Forest Area ◽  
Low Income Countries ◽  
Renewable Energy Consumption

Deforestation shows the constant environmental degradation that occurs worldwide as a result of the growth of economic activity and the increase in population. This research examines the causal link between renewable energy consumption, GDP, GDP2, non-renewable energy price, population growth and forest area in high, middle- and low-income countries. Based on data obtained from World Development Indicators, the autoregressive distributed lag model, with a time series, is used to examine the long-term cointegration relationship between the variables. The results justify the existence of a joint long-term relationship between the variables analysed for the middle-income countries and low-income countries. When the forest area is not at its equilibrium level, the speed of adjustment is slow (0.44% and 8.7%), which is typical of the nature of this natural resource. An increase in the consumption of renewable energy is associated with an increase between 0.04 and 0.02 square kilometres of forest cover, respectively. The research does not show evidence about the equilibrium relationship in the short term. Growth in renewable energy consumption is one of the main drivers for preserving the forest area. Therefore, those responsible for making economic policies must aim their measures towards the use of clean energy.

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