IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2018-01-19.html
   My bibliography  Save this article

Assessment of the contemporaneous impacts of GDP and renewable energy consumption, applying the Dynamic Panel Data: Evidence from developed countries

Author

Listed:
  • Hadi Darvishi

    (Department of Economics, Qaemshahr Branch, Islamic Azad University, Qaem Shahr, Iran,)

  • Shayesteh Varedi

    (Department of Economics, Qaemshahr Branch, Islamic Azad University, Qaem Shahr, Iran)

Abstract

The vast majority of the investigations analyze the effect of renewable energy utilization on GDP with single equation model and the others utilize dynamic panel data. The motivation behind this investigation is to build up a concurrent equations model to investigate the collaboration amongst GDP and sustainable power utilization in a dynamic panel data. This model uses GDP and renewable energy consumption as endogenous variables and seven factors as exogenous variables. By using a dynamic panel data of 30 developed countries from 1990 to 2015, with using the two-stage least-squares method. The results confirm the important influence of renewables and non-renewables as well as capital and labor force on GDP in developed countries. Also both GDP and real oil price play an important role in renewable energy consumption. Our findings suggest that energy planners and policy makers need to increase renewable energy investment to ensure sustainable economic development in future.

Suggested Citation

  • Hadi Darvishi & Shayesteh Varedi, 2018. "Assessment of the contemporaneous impacts of GDP and renewable energy consumption, applying the Dynamic Panel Data: Evidence from developed countries," International Journal of Energy Economics and Policy, Econjournals, vol. 8(1), pages 159-166.
  • Handle: RePEc:eco:journ2:2018-01-19
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijeep/article/download/5995/3512
    Download Restriction: no

    File URL: https://www.econjournals.com/index.php/ijeep/article/view/5995/3512
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Pao, Hsiao-Tien & Fu, Hsin-Chia, 2013. "Renewable energy, non-renewable energy and economic growth in Brazil," Renewable and Sustainable Energy Reviews, Elsevier, vol. 25(C), pages 381-392.
    2. Fang, Yiping, 2011. "Economic welfare impacts from renewable energy consumption: The China experience," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(9), pages 5120-5128.
    3. do Valle Costa, Claudia & La Rovere, Emilio & Assmann, Dirk, 2008. "Technological innovation policies to promote renewable energies: Lessons from the European experience for the Brazilian case," Renewable and Sustainable Energy Reviews, Elsevier, vol. 12(1), pages 65-90, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ivan Trifonov & Dmitry Trukhan & Yury Koshlich & Valeriy Prasolov & Beata Ślusarczyk, 2021. "Influence of the Share of Renewable Energy Sources on the Level of Energy Security in EECCA Countries," Energies, MDPI, vol. 14(4), pages 1-15, February.
    2. Lau, Lin-Sea & Choong, Chee-Keong & Ng, Cheong-Fatt & Liew, Feng-Mei & Ching, Suet-Ling, 2019. "Is nuclear energy clean? Revisit of Environmental Kuznets Curve hypothesis in OECD countries," Economic Modelling, Elsevier, vol. 77(C), pages 12-20.
    3. Meshkatus Salehin & Judit T. Kiss, 2022. "Testing the Causal Relationship between Economic Growth and Renewable Energy Consumption: Evidence from a Panel of EAGLE Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 12(1), pages 281-288.
    4. Arminen, Heli & Menegaki, Angeliki N., 2019. "Corruption, climate and the energy-environment-growth nexus," Energy Economics, Elsevier, vol. 80(C), pages 621-634.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lin, Boqiang & Moubarak, Mohamed, 2014. "Renewable energy consumption – Economic growth nexus for China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 40(C), pages 111-117.
    2. Ozcan, Burcu & Ozturk, Ilhan, 2019. "Renewable energy consumption-economic growth nexus in emerging countries: A bootstrap panel causality test," Renewable and Sustainable Energy Reviews, Elsevier, vol. 104(C), pages 30-37.
    3. Tiba, Sofien & Omri, Anis, 2017. "Literature survey on the relationships between energy, environment and economic growth," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 1129-1146.
    4. Naveed Razzaq & Faqeer Muhammad & Rehmat Karim & Muhammad Tariq & Khair Muhammad, 2021. "The Nexus between Energy, Environment and Growth: Evidence from Latin-American Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 11(1), pages 82-87.
    5. Sofien, Tiba & Omri, Anis, 2016. "Literature survey on the relationships between energy variables, environment and economic growth," MPRA Paper 82555, University Library of Munich, Germany, revised 14 Sep 2016.
    6. Sohag, Kazi & Taşkın, F. Dilvin & Malik, Muhammad Nasir, 2019. "Green economic growth, cleaner energy and militarization: Evidence from Turkey," Resources Policy, Elsevier, vol. 63(C), pages 1-1.
    7. Amri, Fethi, 2017. "Intercourse across economic growth, trade and renewable energy consumption in developing and developed countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 527-534.
    8. Saidi, Hichem & El Montasser, Ghassen & Ajmi, Noomen, 2018. "Renewable Energy, Quality of Institutions and Economic Growth in MENA Countries: a Panel Cointegration Approach," MPRA Paper 84055, University Library of Munich, Germany.
    9. Chen, Wenhui & Lei, Yalin, 2018. "The impacts of renewable energy and technological innovation on environment-energy-growth nexus: New evidence from a panel quantile regression," Renewable Energy, Elsevier, vol. 123(C), pages 1-14.
    10. Chang, Chiu-Lan & Fang, Ming, 2022. "Renewable energy-led growth hypothesis: New insights from BRICS and N-11 economies," Renewable Energy, Elsevier, vol. 188(C), pages 788-800.
    11. Stamatios Ntanos & Michalis Skordoulis & Grigorios Kyriakopoulos & Garyfallos Arabatzis & Miltiadis Chalikias & Spyros Galatsidas & Athanasios Batzios & Apostolia Katsarou, 2018. "Renewable Energy and Economic Growth: Evidence from European Countries," Sustainability, MDPI, vol. 10(8), pages 1-13, July.
    12. Adewuyi, Adeolu O. & Awodumi, Olabanji B., 2017. "Renewable and non-renewable energy-growth-emissions linkages: Review of emerging trends with policy implications," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 275-291.
    13. Bilgili, Faik, 2015. "Business cycle co-movements between renewables consumption and industrial production: A continuous wavelet coherence approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 325-332.
    14. Radmehr, Riza & Henneberry, Shida Rastegari & Shayanmehr, Samira, 2021. "Renewable Energy Consumption, CO2 Emissions, and Economic Growth Nexus: A Simultaneity Spatial Modeling Analysis of EU Countries," Structural Change and Economic Dynamics, Elsevier, vol. 57(C), pages 13-27.
    15. Kahia, Montassar & Aïssa, Mohamed Safouane Ben & Lanouar, Charfeddine, 2017. "Renewable and non-renewable energy use - economic growth nexus: The case of MENA Net Oil Importing Countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 71(C), pages 127-140.
    16. Adewuyi, Adeolu O. & Awodumi, Olabanji B., 2017. "Biomass energy consumption, economic growth and carbon emissions: Fresh evidence from West Africa using a simultaneous equation model," Energy, Elsevier, vol. 119(C), pages 453-471.
    17. Nadia Singh & Richard Nyuur & Ben Richmond, 2019. "Renewable Energy Development as a Driver of Economic Growth: Evidence from Multivariate Panel Data Analysis," Sustainability, MDPI, vol. 11(8), pages 1-18, April.
    18. Aziza Syzdykova & Aktolkin Abubakirova & Fehmi Bugra Erdal & Ainura Saparova & Zhanture Zhetibayev, 2021. "Analysis of the Relationship Between Renewable Energy and Economic Growth in Selected Developing Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 11(1), pages 110-116.
    19. Ranjan Aneja & Umer J. Banday & Tanzeem Hasnat & Mustafa Koçoglu, 2017. "Renewable and Non-renewable Energy Consumption and Economic Growth: Empirical Evidence from Panel Error Correction Model," Jindal Journal of Business Research, , vol. 6(1), pages 76-85, June.
    20. Al-mulali, Usama & Fereidouni, Hassan Gholipour & Lee, Janice Y.M., 2014. "Electricity consumption from renewable and non-renewable sources and economic growth: Evidence from Latin American countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 30(C), pages 290-298.

    More about this item

    Keywords

    Simultaneous Equations; Gross Domestic Product; Renewable Energy Consumption;
    All these keywords.

    JEL classification:

    • C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General
    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ2:2018-01-19. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.