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Does Renewable Energy Increase Growth? Evidence from EU-19 Countries

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  • Gokhan Karhan

    (Department of Economy, Faculty of Economics and Administration, Batman University, Batman, Turkey.)

Abstract

The relationship between renewable energy consumption and economic growth has constituted a substantial field of research. Particularly, examining the significance of causality direction between the two variables is of high significance, since it may provide valuable insights for policy-makers. In this study the causality between renewable energy consumption and economic growth was investigated for 19 EU countries by using Rolling Windows Granger Causality Test for the 1994-2015 periods. Empirical findings show that renewable energy consumption Granger caused economic growth at 2001, 2002, 2003 and 2014 years. Economic growth Granger cause renewable energy consumption at 2004, 2005 and 2007 years. As can be understood from the results, the direction of the causality relationship between variables changes in different time periods. Empirical results have important policy implications for EU-19 Countries.

Suggested Citation

  • Gokhan Karhan, 2019. "Does Renewable Energy Increase Growth? Evidence from EU-19 Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 9(2), pages 341-346.
    • Handle: RePEc:eco:journ2:2019-02-40
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    Cited by:

    1. Jaka Sriyana, 2019. "Dynamic Effects of Energy Consumption on Economic Growth in an Emerging Economy," International Journal of Energy Economics and Policy, Econjournals, vol. 9(4), pages 283-290.
    2. Daniel Balsalobre-Lorente & Nuno Carlos Leitão & Festus Victor Bekun, 2021. "Fresh Validation of the Low Carbon Development Hypothesis under the EKC Scheme in Portugal, Italy, Greece and Spain," Energies, MDPI, vol. 14(1), pages 1-17, January.
    3. Nuno Carlos Leitão, 2021. "The Effects of Corruption, Renewable Energy, Trade and CO 2 Emissions," Economies, MDPI, vol. 9(2), pages 1-19, April.
    4. Krishna Murthy Inumula & Seema Singh & Sandip Solanki, 2020. "Energy Consumption and Agricultural Economic Growth Nexus: Evidence from India," International Journal of Energy Economics and Policy, Econjournals, vol. 10(6), pages 545-552.
    5. Hong, Xudong & Wu, Shengnan & Zhang, Xueliang, 2022. "Clean energy powers energy poverty alleviation: Evidence from Chinese micro-survey data," Technological Forecasting and Social Change, Elsevier, vol. 182(C).
    6. Nuno Carlos Leitão & Daniel Balsalobre Lorente, 2020. "The Linkage between Economic Growth, Renewable Energy, Tourism, CO 2 Emissions, and International Trade: The Evidence for the European Union," Energies, MDPI, vol. 13(18), pages 1-16, September.
    7. Cheng-Yih Hong & Hsiu-Ching Chang, 2019. "Comparing the Impact of Wind Power and Solar Power Investment on Industrial Development: Application of Dynamic Energy Industry-related Models," International Journal of Energy Economics and Policy, Econjournals, vol. 9(6), pages 38-44.

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    More about this item

    Keywords

    Economic Growth; Renewable Energy Consumption; Europe Union;
    All these keywords.

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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