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A robust analysis of the relationship between renewable energy consumption and its main drivers

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  • Anis Omri
  • Saida Daly
  • Duc Khuong Nguyen

Abstract

We provide a comprehensive and robust analysis of the drivers of renewable energy consumption for a panel of 64 countries, using both the static (Pooled OLS, Panel Fixed and Random Effects) and dynamic (difference and system GMM) panel data estimation approaches. We show that the dynamic panel data model provides more efficient estimators than the static ones and that increases in per capita CO 2 emissions and per capita trade with foreign partners mainly drive the changes in per capita renewable energy consumption. We also find limited evidence of oil price effects on renewable energy consumption, which reflects the fact that renewable energy is just a complement and not a perfect substitute of crude oil, at least in the short run.

Suggested Citation

  • Anis Omri & Saida Daly & Duc Khuong Nguyen, 2015. "A robust analysis of the relationship between renewable energy consumption and its main drivers," Applied Economics, Taylor & Francis Journals, vol. 47(28), pages 2913-2923, June.
    • Handle: RePEc:taf:applec:v:47:y:2015:i:28:p:2913-2923
    DOI: 10.1080/00036846.2015.1011312
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