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Renewable electricity generation and economic growth nexus in developing countries: An ARDL approach

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  • Anam Azam
  • Muhammad Rafiq
  • Muhammad Shafique
  • Jiahai Yuan

Abstract

This study examines the short- and long-run of the causal correlation between economic growth (G.R.) and renewable electricity generation sources for a panel of 25 developing nations over the period 1990–2017. To do so, second-generation cross-sectional dependence (C.D.) test Im, K.S., Pesaran and Augmented Dickey-Fuller panel unit root test, panel cointegration, autoregressive distributed lag in view of the pooled mean group estimation and panel heterogeneous Dumitrescu Hurlin (2012) causality methods are utilised. The main findings indicate that the positive and significant impact of renewable electricity generation on G.R. shows that renewable electricity generation sources stimulate G.R. in the long run for these selected countries. It is also demonstrated that there is bidirectional causality between renewable electricity generation and G.R. both in the short run and long run. Based on our findings, the feedback hypothesis is valid for developing countries.

Suggested Citation

  • Anam Azam & Muhammad Rafiq & Muhammad Shafique & Jiahai Yuan, 2021. "Renewable electricity generation and economic growth nexus in developing countries: An ARDL approach," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 34(1), pages 2423-2446, January.
    • Handle: RePEc:taf:reroxx:v:34:y:2021:i:1:p:2423-2446
    DOI: 10.1080/1331677X.2020.1865180
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    Citations

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    Cited by:

    1. Nyiko Worship Hlongwane & Olebogeng David Daw, 2023. "Electricity Trade and Economic Growth in South Africa," International Journal of Energy Economics and Policy, Econjournals, vol. 13(5), pages 355-364, September.
    2. Bei, Jinlan & Wang, Chunyu, 2023. "Renewable energy resources and sustainable development goals: Evidence based on green finance, clean energy and environmentally friendly investment," Resources Policy, Elsevier, vol. 80(C).
    3. Nyiko Worship Hlongwane & Mpho Lenoke & Olebogeng David Daw, 2023. "An Analysis of Electricity Generation, Supply, and Economic Growth in Selected SADC Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 13(6), pages 482-493, November.
    4. Shah, Syed Ale Raza & Zhang, Qianxiao & Abbas, Jaffar & Tang, Hui & Al-Sulaiti, Khalid Ibrahim, 2023. "Waste management, quality of life and natural resources utilization matter for renewable electricity generation: The main and moderate role of environmental policy," Utilities Policy, Elsevier, vol. 82(C).
    5. Meryem FİLİZ-BAŞTÜRK, 2024. "Solar Energy Production and Economic Growth: An Analysis for EU Countries," Sosyoekonomi Journal, Sosyoekonomi Society, issue 32(60).
    6. Shakouri, Hamed & Pandey, Shikhar & Rahmatian, Farnoosh & Paaso, Esa A., 2023. "Does the increased electricity consumption (provided by capacity expansion and/or reliability improvement) cause economic growth?," Energy Policy, Elsevier, vol. 182(C).
    7. Vaishali S. Dhingra, 2023. "Financial development, economic growth, globalisation and environmental quality in BRICS economies: evidence from ARDL bounds test approach," Economic Change and Restructuring, Springer, vol. 56(3), pages 1651-1682, June.
    8. Idroes, Ghalieb Mutig & Hardi, Irsan & Hilal, Iin Shabrina & Utami, Resty Tamara & Noviandy, Teuku Rizky & Idroes, Rinaldi, 2024. "Economic growth and environmental impact: Assessing the role of geothermal energy in developing and developed countries," Innovation and Green Development, Elsevier, vol. 3(3).

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