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The moderating role of human capital and renewable energy in promoting economic development in G10 economies: Evidence from CUP-FM and CUP-BC methods

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  • Shidong, Li
  • Chupradit, Supat
  • Maneengam, Apichit
  • Suksatan, Wanich
  • Phan The, Cong
  • Nguyen Ngoc, Quynh

Abstract

Economic development is attributed to higher energy consumption emerged from economic and industrial activities, whereas renewable energy is pronounced as the differentiating factor for achieving competitiveness among the economies and ensuring environmental sustainability. On the other hand, Human Capital plays the role of an interface between the inputs or resources consumed and the output generated; therefore, it can also derive economic development in a better way. Thus, this study explores the impact of human Capital, renewable energy, and the interaction of both in realizing higher economic development. For empirical analysis, we employed comparatively new panel estimation techniques “continuously updated fully modified” (Cup-FM) and “continuously updated bias-corrected” (Cup-BC) using a panel of G-10 countries. The overall results demonstrate that human Capital and renewable stimulate higher economic development. Manifestly, the interaction of both variables reports a more substantial impact on economic development, implying that human capital development is a stimulus to boost the positive effects of renewable energy sources on economic growth. Based on the findings, the stakeholders are recommended to invest in human Capital and renewable energy adoption.

Suggested Citation

  • Shidong, Li & Chupradit, Supat & Maneengam, Apichit & Suksatan, Wanich & Phan The, Cong & Nguyen Ngoc, Quynh, 2022. "The moderating role of human capital and renewable energy in promoting economic development in G10 economies: Evidence from CUP-FM and CUP-BC methods," Renewable Energy, Elsevier, vol. 189(C), pages 180-187.
    • Handle: RePEc:eee:renene:v:189:y:2022:i:c:p:180-187
    DOI: 10.1016/j.renene.2022.02.053
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    More about this item

    Keywords

    Human capital; Renewable energy; Economic development; G10 economies; Environmental sustainblity CUP-FM; CUP-BC;
    All these keywords.

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)

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