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The Nexus between Renewable Energy Consumption and Economic Growth: Empirical Evidence from Jordan

Author

Listed:
  • Omar Alkasasbeh

    (Faculty of Business, Amman Arab University, Amman, Jordan)

  • Ohoud Khasawneh

    (Faculty of Business, Amman Arab University, Amman, Jordan)

  • Amro Alzghoul

    (Faculty of Business, Amman Arab University, Amman, Jordan)

Abstract

Existing literature on the relationship between renewable energy and economic growth yields mixed outcomes, since the impact of renewable energy consumption on economic growth can be negative, positive or insignificant. Using the autoregressive distributed lag (ARDL) method, this paper examines the nexus between renewable energy and economic growth in Jordan from 2000 to 2020, utilizing renewable electricity output (REO), renewable energy consumption (REC), and gross domestic product (GDP). Utilizing the Dickey Fuller (ADF) and Philips Perron (PP) unit root tests, the levels or differences of the stationary variables were explored. The statistically robust findings reveal that renewable energy usage has a substantial positive economic effects. The results indicate that stakeholders (including energy planners, governments, and private sector organizations) must collaborate to increase investment in renewable energy to secure long-term economic growth.

Suggested Citation

  • Omar Alkasasbeh & Ohoud Khasawneh & Amro Alzghoul, 2023. "The Nexus between Renewable Energy Consumption and Economic Growth: Empirical Evidence from Jordan," International Journal of Energy Economics and Policy, Econjournals, vol. 13(2), pages 194-199, March.
    • Handle: RePEc:eco:journ2:2023-02-20
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    References listed on IDEAS

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    Cited by:

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    More about this item

    Keywords

    ARDL; Climate; Economic Growth; greenhouse gas;
    All these keywords.

    JEL classification:

    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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