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Renewable Energy and Economic Growth: Evidence from the Sign of Panel Long-Run Causality

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Listed:
  • Nicholas Apergis

    (Department of Economics and Property, Curtin University, Bentley Campus, Perth 6845, Australia)

  • Dan Constantin Danuletiu

    (Department of Economics and Business Administration, 1 Decembrie 1918 University of Alba Iulia, Alba Iulia, Romania.)

Abstract

Unlike previous renewable energy-growth studies, this study examines for the first time the relationship between renewable energy and economic growth for 80 countries under the Canning and Pedroni (2008) long-run causality test, which indicates that there is long-run positive causality running from renewable energy to real GDP for the total sample as well as across regions. The empirical findings provide strong evidence that the interdependence between renewable energy consumption and economic growth indicates that renewable energy is important for economic growth and likewise economic growth encourages the use of more renewable energy source. The presence of causality provides an avenue to continue the use of government policies that enhance the development of the renewable energy sector.

Suggested Citation

  • Nicholas Apergis & Dan Constantin Danuletiu, 2014. "Renewable Energy and Economic Growth: Evidence from the Sign of Panel Long-Run Causality," International Journal of Energy Economics and Policy, Econjournals, vol. 4(4), pages 578-587.
    • Handle: RePEc:eco:journ2:2014-04-08
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    More about this item

    Keywords

    Renewable energy; Economic growth; Sign test; Panel countries;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General

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