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Renewable and non-renewable energy consumption and economic growth relationship revisited: Evidence from G7 countries

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  • Tugcu, Can Tansel
  • Ozturk, Ilhan
  • Aslan, Alper

Abstract

The aim of this study is to investigate the long-run and causal relationships between renewable and non-renewable energy consumption and economic growth by using classical and augmented production functions, and making a comparison between renewable and non-renewable energy sources in order to determine which type of energy consumption is more important for economic growth in G7 countries for 1980–2009 period. Autoregressive Distributed Lag approach to cointegration was employed for this purpose. Also, causality among energy consumption and economic growth was investigated by employing a recently developed causality test by Hatemi-J (2012). The long-run estimates showed that either renewable or non-renewable energy consumption matters for economic growth and augmented production function is more effective on explaining the considered relationship. On the other hand, although bidirectional causality is found for all countries in case of classical production function, mixed results are found for each country when the production function is augmented.

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Bibliographic Info

Article provided by Elsevier in its journal Energy Economics.

Volume (Year): 34 (2012)
Issue (Month): 6 ()
Pages: 1942-1950

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Handle: RePEc:eee:eneeco:v:34:y:2012:i:6:p:1942-1950

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Web page: http://www.elsevier.com/locate/eneco

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Keywords: Renewable and non-renewable energy consumption; Growth; G7;

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Citations

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Cited by:
  1. Sebri, Maamar & Ben Salha, Ousama, 2013. "On the causal dynamics between economic growth, renewable energy consumption, CO2 emissions and trade openness: Fresh evidence from BRICS countries," MPRA Paper 52535, University Library of Munich, Germany.
  2. Al-mulali, Usama & Fereidouni, Hassan Gholipour & Lee, Janice Ym & Sab, Che Normee Binti Che, 2013. "Examining the bi-directional long run relationship between renewable energy consumption and GDP growth," Renewable and Sustainable Energy Reviews, Elsevier, vol. 22(C), pages 209-222.
  3. Çoban, Serap & Topcu, Mert, 2013. "The nexus between financial development and energy consumption in the EU: A dynamic panel data analysis," Energy Economics, Elsevier, vol. 39(C), pages 81-88.
  4. Ben Jebli, Mehdi & Ben Youssef, Slim & Ozturk, Ilhan, 2013. "The Environmental Kuznets Curve: The Role of Renewable and Non-Renewable Energy Consumption and Trade Openness," MPRA Paper 51672, University Library of Munich, Germany.
  5. Halkos, George & Tzeremes, Nickolaos, 2013. "The effect of electricity consumption from renewable sources on countries’ economic growth levels: Evidence from advanced, emerging and developing economies," MPRA Paper 50630, University Library of Munich, Germany.
  6. Anis Omri & Anissa Chaibi, 2014. "Nuclear energy, renewable energy, and economic growth in developed and developing countries : A modelling analysis from simultaneous-equation models," Working Papers 2014-188, Department of Research, Ipag Business School.
  7. Ocal, Oguz & Aslan, Alper, 2013. "Renewable energy consumption–economic growth nexus in Turkey," Renewable and Sustainable Energy Reviews, Elsevier, vol. 28(C), pages 494-499.
  8. Halkos, George & Tzeremes, Nickolaos, 2013. "Renewable energy consumption and economic efficiency: Evidence from European countries," MPRA Paper 44136, University Library of Munich, Germany.
  9. Ben Salha, Ousama & Sebri, Maamar, 2013. "A multivariate analysis of the causal flow between renewable energy consumption and GDP in Tunisia," MPRA Paper 52572, University Library of Munich, Germany.
  10. Kandemir Kocaaslan, Ozge, 2013. "The causal link between energy and output growth: Evidence from Markov switching Granger causality," Energy Policy, Elsevier, vol. 63(C), pages 1196-1206.
  11. Gorkemli Kazar & Arthur Kazar, 2014. "The Renewable Energy Production-Economic Development Nexus," International Journal of Energy Economics and Policy, Econjournals, vol. 4(2), pages 312-319.
  12. Can Tansel TUGCU, 2013. "Disaggregate Energy Consumption and Total Factor Productivity: A Cointegration and Causality Analysis for the Turkish Economy," International Journal of Energy Economics and Policy, Econjournals, vol. 3(3), pages 307-314.
  13. Sebri, Maamar, 2014. "Use renewables to be cleaner: Meta-analysis of the renewable energy consumption-economic growth nexus," MPRA Paper 53247, University Library of Munich, Germany.
  14. Ben Jebli, Mehdi & Ben Youssef, Slim, 2013. "Economic growth, combustible renewables and waste consumption and emissions in North Africa," MPRA Paper 47765, University Library of Munich, Germany.

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