Renewable energy: An efficient mechanism to improve GDP
AbstractThis article analyzes the effects of renewable energy on GDP for 116 economies in 2003 through Structural Equation Modeling (SEM) approach. In order to decipher the mechanism of how the use of renewables improves macroeconomic efficiency, we decompose GDP by the "expenditure approach". Although previous theory predicts positive effects of renewables on capital formation and trade balance, the SEM results show that renewables have a significant positive influence on capital formation only. The result that renewables do not have a significant impact on trade balance implies that renewables do not have an import substitution effect. Thus, we confirm the positive relationship between renewable energy and GDP through the path of increasing capital formation, but not for the path of increasing trade balance.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Energy Policy.
Volume (Year): 36 (2008)
Issue (Month): 8 (August)
Contact details of provider:
Web page: http://www.elsevier.com/locate/enpol
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Gan, Lin & Eskeland, Gunnar S. & Kolshus, Hans H., 2007. "Green electricity market development: Lessons from Europe and the US," Energy Policy, Elsevier, vol. 35(1), pages 144-155, January.
- Söderholm, Patrik & Ek, Kristina & Pettersson, Maria, 2007. "Wind power development in Sweden: Global policies and local obstacles," Renewable and Sustainable Energy Reviews, Elsevier, vol. 11(3), pages 365-400, April.
- Toshihiko Masui, Tatsuya Hanaoka, Saeko Hikita, and Mikiko Kainuma, 2006. "Assessment of CO2 Reductions and Economic Impacts Considering Energy-Saving Investments," The Energy Journal, International Association for Energy Economics, vol. 0(Special I), pages 175-190.
- Lund, P.D., 2007. "Effectiveness of policy measures in transforming the energy system," Energy Policy, Elsevier, vol. 35(1), pages 627-639, January.
- Chien, Taichen & Hu, Jin-Li, 2007. "Renewable energy and macroeconomic efficiency of OECD and non-OECD economies," Energy Policy, Elsevier, vol. 35(7), pages 3606-3615, July.
- Anderson, Dennis & Leach, Matthew, 2004. "Harvesting and redistributing renewable energy: on the role of gas and electricity grids to overcome intermittency through the generation and storage of hydrogen," Energy Policy, Elsevier, vol. 32(14), pages 1603-1614, September.
- Wamukonya, Njeri, 2007. "Solar home system electrification as a viable technology option for Africa's development," Energy Policy, Elsevier, vol. 35(1), pages 6-14, January.
- Green, Chris & Baksi, Soham & Dilmaghani, Maryam, 2007. "Challenges to a climate stabilizing energy future," Energy Policy, Elsevier, vol. 35(1), pages 616-626, January.
- Lund, P.D., 2007. "Upfront resource requirements for large-scale exploitation schemes of new renewable technologies," Renewable Energy, Elsevier, vol. 32(3), pages 442-458.
Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Renewable energy and import-substituting industrialization
by John Whitehead in Environmental Economics on 2009-03-10 12:16:00
- Chmutina, Ksenia & Goodier, Chris I., 2014. "Alternative future energy pathways: Assessment of the potential of innovative decentralised energy systems in the UK," Energy Policy, Elsevier, vol. 66(C), pages 62-72.
- Susana Silva & Isabel Soares & Carlos Pinho, 2011.
"The impact of renewable energy sources on economic growth and CO2 emissions - a SVAR approach,"
FEP Working Papers
407, Universidade do Porto, Faculdade de Economia do Porto.
- Susana Silva & Isabel Soares & Carlos Pinho, 2012. "The Impact of Renewable Energy Sources on Economic Growth and CO2 Emissions - a SVAR approach," European Research Studies Journal, European Research Studies Journal, vol. 0(Special I), pages 133-144.
- Abanda, F.H. & Ng’ombe, A. & Keivani, R. & Tah, J.H.M., 2012. "The link between renewable energy production and gross domestic product in Africa: A comparative study between 1980 and 2008," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(4), pages 2147-2153.
- Grafton, R. Quentin & Kompas, Tom & Long, Ngo Van & To, Hang, 2014. "US biofuels subsidies and CO2 emissions: An empirical test for a weak and a strong green paradox," Energy Policy, Elsevier, vol. 68(C), pages 550-555.
- Bi, Gong-Bing & Song, Wen & Zhou, P. & Liang, Liang, 2014. "Does environmental regulation affect energy efficiency in China's thermal power generation? Empirical evidence from a slacks-based DEA model," Energy Policy, Elsevier, vol. 66(C), pages 537-546.
- 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.
- Chang, Ting-Huan & Huang, Chien-Ming & Lee, Ming-Chih, 2009. "Threshold effect of the economic growth rate on the renewable energy development from a change in energy price: Evidence from OECD countries," Energy Policy, Elsevier, vol. 37(12), pages 5796-5802, December.
- Kaldellis, J.K., 2011. "Critical evaluation of financial supporting schemes for wind-based projects: Case study Greece," Energy Policy, Elsevier, vol. 39(5), pages 2490-2500, May.
- Elena Ketteni & Theofanis Mamuneas & Panos Pashardes, 2013. "ICT and Energy Use: Patterns of Substitutability and Complementarity in Production," Cyprus Economic Policy Review, University of Cyprus, Economics Research Centre, vol. 7(1), pages 63-86, June.
- Muhammad, Shahbaz Shabbir & Muhammad, Zeshan & Muhammad, Shahbaz, 2011. "Renewable and nonrenewable energy consumption, real GDP and CO2 emissions nexus: a structural VAR approach in Pakistan," MPRA Paper 34859, University Library of Munich, Germany, revised 18 Nov 2011.
- Sadorsky, Perry, 2009. "Renewable energy consumption and income in emerging economies," Energy Policy, Elsevier, vol. 37(10), pages 4021-4028, October.
- Lili Li, 2014. "Empirical Research on the Relationship between China Export and New Energy Consumption," International Journal of Energy Economics and Policy, Econjournals, vol. 4(2), pages 229-237.
- Aviral Kumar Tiwari, 2011. "A structural VAR analysis of renewable energy consumption, real GDP and CO2 emissions: Evidence from India," Economics Bulletin, AccessEcon, vol. 31(2), pages 1793-1806.
- Fang, Yiping, 2011. "Economic welfare impacts from renewable energy consumption: The China experience," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(9), pages 5120-5128.
- Halkos, George & Tzeremes, Nickolaos, 2013. "Renewable energy consumption and economic efficiency: Evidence from European countries," MPRA Paper 44136, University Library of Munich, Germany.
- Natalia Magnani & Andrea Vaona, 2011.
"Regional spillover effects of renewable energy generation in Italy,"
12/2011, University of Verona, Department of Economics.
- Magnani, Natalia & Vaona, Andrea, 2013. "Regional spillover effects of renewable energy generation in Italy," Energy Policy, Elsevier, vol. 56(C), pages 663-671.
- Marques, António C. & Fuinhas, José A. & Pires Manso, J.R., 2010. "Motivations driving renewable energy in European countries: A panel data approach," Energy Policy, Elsevier, vol. 38(11), pages 6877-6885, November.
- Brown, Jason P. & Pender, John & Wiser, Ryan & Lantz, Eric & Hoen, Ben, 2012. "Ex post analysis of economic impacts from wind power development in U.S. counties," Energy Economics, Elsevier, vol. 34(6), pages 1743-1754.
- Huang, Shih-Chieh & Lo, Shang-Lien & Lin, Yen-Ching, 2013. "Application of a fuzzy cognitive map based on a structural equation model for the identification of limitations to the development of wind power," Energy Policy, Elsevier, vol. 63(C), pages 851-861.
- Andrea Vaona, 2013. "Import demand and renewable energy generation in 26 countries," Working Papers 07/2013, University of Verona, Department of Economics.
- Zafirakis, D. & Chalvatzis, K. & Kaldellis, J.K., 2013. "“Socially just” support mechanisms for the promotion of renewable energy sources in Greece," Renewable and Sustainable Energy Reviews, Elsevier, vol. 21(C), pages 478-493.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If references are entirely missing, you can add them using this form.