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Examining the bi-directional long run relationship between renewable energy consumption and GDP growth

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  • Al-mulali, Usama
  • Fereidouni, Hassan Gholipour
  • Lee, Janice Ym
  • Sab, Che Normee Binti Che

Abstract

The bi-directional long run relationship between renewable energy consumption and GDP growth has been investigated in high income, upper middle income, lower middle income, and high income countries. To achieve this goal, the fully modified OLS was utilized. The results revealed that 79% of the countries have a positive bi-directional long run relationship between renewable energy consumption and GDP growth. This represents the feedback hypothesis. On the other hand, 19% of the countries showed no long run relationship between the variables. This represents the neutrality hypothesis. Besides, 2% of the countries showed a one way long run relationship from GDP growth to renewable energy consumption, confirming the conservation hypothesis, and from renewable energy consumption and GDP growth representing the growth hypothesis. Despite the mixed results across countries, it has been proved that the more persistent and significant the bi-directional long run relationship between the variables is, the higher the income countries are.

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Bibliographic Info

Article provided by Elsevier in its journal Renewable and Sustainable Energy Reviews.

Volume (Year): 22 (2013)
Issue (Month): C ()
Pages: 209-222

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Handle: RePEc:eee:rensus:v:22:y:2013:i:c:p:209-222

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Keywords: Renewable energy consumption; GDP growth; FMOLS;

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Cited by:
  1. Ben Jebli, Mehdi & Ben Youssef, Slim, 2013. "Output, renewable and non-renewable energy consumption and international trade: Evidence from a panel of 69 countries," MPRA Paper 56494, University Library of Munich, Germany, revised 07 Apr 2014.
  2. Ben Jebli, Mehdi & Ben Youssef, Slim, 2014. "Economic growth, combustible renewables and waste consumption and emissions in North Africa," MPRA Paper 55300, University Library of Munich, Germany.
  3. Malik, Ihtisham Abdul & Siyal, Ghamz-e-Ali & Abdullah, Alias Bin & Alam, Arif & Zaman, Khalid & Kyophilavong, Phouphet & Shahbaz, Muhammad & Baloch, Siraj Ullah & Shams, Tauqeer, 2014. "Turn on the Lights: Macroeconomic Factors Affecting Renewable in Pakistan," MPRA Paper 56828, University Library of Munich, Germany, revised 23 Jun 2014.
  4. 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.

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