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Renewable energy consumption and income in emerging economies

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  • Sadorsky, Perry
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    Abstract

    Increased economic growth and demand for energy in emerging economies is creating an opportunity for these countries to increase their usage of renewable energy. This paper presents and estimates two empirical models of renewable energy consumption and income for a panel of emerging economies. Panel cointegration estimates show that increases in real per capita income have a positive and statistically significant impact on per capita renewable energy consumption. In the long term, a 1% increase in real income per capita increases the consumption of renewable energy per capita in emerging economies by approximately 3.5%. Long-term renewable energy per capita consumption price elasticity estimates are approximately equal to -0.70.

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    Bibliographic Info

    Article provided by Elsevier in its journal Energy Policy.

    Volume (Year): 37 (2009)
    Issue (Month): 10 (October)
    Pages: 4021-4028

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    Handle: RePEc:eee:enepol:v:37:y:2009:i:10:p:4021-4028

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

    Related research

    Keywords: Renewable energy Panel cointegration Emerging economies;

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