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An Antidote to the Resource Curse: The Blessing of Renewable Energy

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  • Angeliki N. Menegaki

    (Organismos Georgikon Asfaliseon, Regional Branch of Eastern Macedonia & Thrace, 69100, Komotini, Greece)

Abstract

This paper empirically examines the validity of the resource curse in Europe and it is the first time renewable energy is inserted in this research context. The study uses panel data with a variety of explanatory variable proxies for investment, openness, rule of law, resource endowments and human capital. It employs a single equation fixed effects model with heteroskedasticity robust covariance and a simultaneous two equation model where renewable energy enters the structural equation as an endogenous variable. The resource curse is confirmed only for crude oil and resource productivity in the single equation model while renewable energy has a positive relationship to growth. In the simultaneous two equation model, countries with high oil production and emissions also have a higher production of renewable energies.

Suggested Citation

  • Angeliki N. Menegaki, 2013. "An Antidote to the Resource Curse: The Blessing of Renewable Energy," International Journal of Energy Economics and Policy, Econjournals, vol. 3(4), pages 321-332.
    • Handle: RePEc:eco:journ2:2013-04-17
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    References listed on IDEAS

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    1. Chris Jeffords & Alexi Thompson & David Yerger, 2015. "Employment Booms and Busts Stemming from Nonrenewable Resource Extraction," International Journal of Energy Economics and Policy, Econjournals, vol. 5(3), pages 809-815.

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    More about this item

    Keywords

    Natural resource curse; economic growth; renewable energy; Europe; fixed effects model;
    All these keywords.

    JEL classification:

    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
    • P52 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General

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