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Regional spillover effects of renewable energy generation in Italy

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  • Magnani, Natalia
  • Vaona, Andrea

Abstract

In a multivariate setting, we document that renewable energy generation has a positive impact on economic growth at the regional level in Italy. We do so by adopting panel data unit-root and cointegration tests as well as Granger non-causality tests relying on the system GMM estimator. Our results are interpreted in three ways. Renewable energy generation alleviates balance-of-payments constraints and reduces the exposure of a regional economy to the volatility of the price of fossil fuels and to negative environmental and health externalities deriving from non-renewable energy generation. Therefore, our evidence supports policies promoting renewable energy generation. In an appendix we show that our results are robust to the adoption of alternative econometric methods and definitions for our energy variable. They are also stable over time.

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Bibliographic Info

Article provided by Elsevier in its journal Energy Policy.

Volume (Year): 56 (2013)
Issue (Month): C ()
Pages: 663-671

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Handle: RePEc:eee:enepol:v:56:y:2013:i:c:p:663-671

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

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Keywords: Renewable energy generation; Economic growth; Panel data methods;

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Cited by:
  1. Muhammad, Shahbaz & Muhammad, Zeshan & Talat, Afza, 2012. "Is energy consumption effective to spur economic growth in Pakistan? new evidence from bounds test to level relationships and Granger causality tests," MPRA Paper 39734, University Library of Munich, Germany, revised 29 Jun 2012.
  2. Muhammad, Shahbaz & Qazi, Muhammad Adnan Hye & Muhammad, Zeshan, 2012. "Is Renewable Energy Consumption Effective to Promote Economic Growth in Pakistan: Evidence from Bounds Testing and Rolling Window Approach," MPRA Paper 41608, University Library of Munich, Germany, revised 27 Sep 2012.

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