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The Relationship between Non-Renewable Energy Consumption and Economic Growth: A Regional Analysis of European Continent

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  • Metehan Yılgör
  • Suna Korkmaz
  • Fulden Kömüryakan

Abstract

This study aims to examine the relationship between the non-renewable energy consumption of the countries and their economic status since energy consumption and production appear to be interconnected phenomena. This study analyses the Eastern, Middle, North, South, and Western regions of the European continent from 1990 to 2014. To the best of our knowledge, this is the first paper to analyze the relationship between non-renewable energy consumption and economic growth in the European continent by region. The study adopts a panel causality process to examine the relationship between two phenomena. According to the empirical analyses, there is bidirectional causality between non-renewable energy consumption and economic growth in Eastern, Middle, North, and South European regions whereas a unidirectional relationship from non-renewable energy consumption to economic growth in the Western. Non-renewable energy consumption and economic growth are still interconnected phenomena in the European countries even though climate concerns, environmental precautions, and promotion to reduce unsustainable production.

Suggested Citation

  • Metehan Yılgör & Suna Korkmaz & Fulden Kömüryakan, 2021. "The Relationship between Non-Renewable Energy Consumption and Economic Growth: A Regional Analysis of European Continent," Journal of Research in Economics, Politics & Finance, Ersan ERSOY, vol. 6(3), pages 587-607.
    • Handle: RePEc:ahs:journl:v:6:y:2021:i:3:p:587-607
    DOI: 10.30784/epfad.916025
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    References listed on IDEAS

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    Cited by:

    1. Korkmaz, Özge, 2022. "Do oil, coal, and natural gas consumption and rents impact economic growth? An empirical analysis of the Russian Federation," Resources Policy, Elsevier, vol. 77(C).

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    More about this item

    Keywords

    Non-renewable Energy; Economic Growth; European Continent; Panel Causality Analysis;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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