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Renewable Energy Consumption and Economic Growth in Argentina: A Multivariate Co-integration Analysis

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  • Hlalefang Khobai

    (Department of Economics, North-West University, South Africa.)

Abstract

This paper applied the ARDL bounds test approach and the VECM test technique to examine the long run relationship and direction of causality between renewable energy consumption and economic growth in Argentina. Quarterly time series data was employed in this study covering a period between 1990 and 2018. Trade openness, capital and employment were included in the study to form a multivariate framework. The results established that there is a long run relationship between the variables. The VECM test technique confirmed a unidirectional causality flowing from economic growth to renewable energy consumption. This implies that energy conservation policies may not harm the economic growth. The study, therefore, suggest that an appropriate and effective energy policy should be implemented in the long run.

Suggested Citation

  • Hlalefang Khobai, 2021. "Renewable Energy Consumption and Economic Growth in Argentina: A Multivariate Co-integration Analysis," International Journal of Energy Economics and Policy, Econjournals, vol. 11(3), pages 563-570.
    • Handle: RePEc:eco:journ2:2021-03-68
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    More about this item

    Keywords

    Renewable energy consumption; Economic growth; Causality; Argentina;
    All these keywords.

    JEL classification:

    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • Q47 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy Forecasting
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development

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