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Assessment of the contemporaneous impacts of GDP and renewable energy consumption, applying the Dynamic Panel Data: Evidence from developed countries

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  • Hadi Darvishi

    (Department of Economics, Qaemshahr Branch, Islamic Azad University, Qaem Shahr, Iran,)

  • Shayesteh Varedi

    (Department of Economics, Qaemshahr Branch, Islamic Azad University, Qaem Shahr, Iran)

Abstract

The vast majority of the investigations analyze the effect of renewable energy utilization on GDP with single equation model and the others utilize dynamic panel data. The motivation behind this investigation is to build up a concurrent equations model to investigate the collaboration amongst GDP and sustainable power utilization in a dynamic panel data. This model uses GDP and renewable energy consumption as endogenous variables and seven factors as exogenous variables. By using a dynamic panel data of 30 developed countries from 1990 to 2015, with using the two-stage least-squares method. The results confirm the important influence of renewables and non-renewables as well as capital and labor force on GDP in developed countries. Also both GDP and real oil price play an important role in renewable energy consumption. Our findings suggest that energy planners and policy makers need to increase renewable energy investment to ensure sustainable economic development in future.

Suggested Citation

  • Hadi Darvishi & Shayesteh Varedi, 2018. "Assessment of the contemporaneous impacts of GDP and renewable energy consumption, applying the Dynamic Panel Data: Evidence from developed countries," International Journal of Energy Economics and Policy, Econjournals, vol. 8(1), pages 159-166.
    • Handle: RePEc:eco:journ2:2018-01-19
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    More about this item

    Keywords

    Simultaneous Equations; Gross Domestic Product; Renewable Energy Consumption;
    All these keywords.

    JEL classification:

    • C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General
    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

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