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Renewable Energy Consumption Convergence in G-7 Countries

Author

Listed:
  • Mohamad Husam Helmi

    (Rabdan Academy, Abu Dhabi, 22401, United Arab Emirates,)

  • Abdurrahman Nazif Catik

    (Department of Economics, Ege University, Izmir, Turkey,)

  • Nuran Coskun

    (Department of Economics, Mersin University, Mersin, Turkey)

  • Esra Balli

    (Department of Economics, Erzincan Binali Yildirim University, Erzincan, Turkey)

  • Ciler Sigeze

    (Department of Econometrics, Cukurova University, Adana, Turkey)

Abstract

This study examines the convergence of renewable energy consumption in G-7 countries. We employ LM unit root and RALS version of LM unit root tests with endogenously determined with structural one or two breaks. Despite the increase in renewable energy consumption in G-7 countries, it is important to identify whether renewable energy consumption converges across these countries to formulate appropriate policies to support sustainable energy consumption and reduce CO2 emissions. Our analysis indicated that Germany, Italy, and Canada exhibit evidence of convergence. However, after employing both the LM and RALS versions of the LM unit root tests, which consider level shifts with one or two breaks or trend shifts with one or two breaks, we found that there is no evidence of convergence for France, Japan, and the United Kingdom. Overall, our results highlight the importance of formulating country-specific policies to support renewable energy consumption and reduce CO2 emissions. Policymakers need to identify the drivers of renewable energy consumption and adopt appropriate measures to ensure that the countries can meet their climate goals while also ensuring energy security.

Suggested Citation

  • Mohamad Husam Helmi & Abdurrahman Nazif Catik & Nuran Coskun & Esra Balli & Ciler Sigeze, 2023. "Renewable Energy Consumption Convergence in G-7 Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 13(6), pages 203-210, November.
    • Handle: RePEc:eco:journ2:2023-06-22
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    References listed on IDEAS

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    More about this item

    Keywords

    Renewable Energy; G-7 Countries; Convergence;
    All these keywords.

    JEL classification:

    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models

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