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The Impact of Oil Price on Transition toward Renewable Energy Consumption? Evidence from Russia

Author

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  • Rıdvan Karacan

    (Department of Economy, Kocaeli University, Kocaeli 41800, Turkey)

  • Shahriyar Mukhtarov

    (Department of Economics, Baku Engineering University, Hasan Aliyev 120, Khirdalan, Baku AZ0101, Azerbaijan
    Faculty of Economics and International Relations, Vistula University, Stoklosy 3, 02-787 Warsaw, Poland)

  • İsmail Barış

    (Department of Social Work, Uskudar University, İstanbul 34662, Turkey)

  • Aykut İşleyen

    (Department of Business Administration, Hitit University, Çorum 19030, Turkey)

  • Mehmet Emin Yardımcı

    (Faculty of Economics and Administrative Sciences, Kocaeli University, Kocaeli 41040, Turkey)

Abstract

This research investigates the impact of oil price, income and carbon dioxide emissions on renewable energy consumption in Russia for the data period from 1990 to 2015, using the Vector Error Correction Models and the Canonical Cointegrating Regression method. This article is the only study conducting individual time-series analysis that emphasizes the effect of oil price on renewable energy consumption in the case of Russia. The results of empirical analysis conclude that oil price affects renewable energy consumption negatively. The negative oil price effects on renewable energy use can be interpreted as a sign of issue that stems from higher oil prices and slows the transition from conventional to renewable energy sources. Additionally, we found that there is a positive and statistically significant influence of real GDP per capita as a proxy of income on renewable energy consumption, whereas the carbon dioxide emissions have a negative and statistically insignificant influence on renewable energy consumption. Considering these empirical results, Russia, which has a significant share in energy production in the world, should focus on the use of renewable energy in order to maintain this superiority and its sustainability. The findings of this paper may be useful to policymakers and may help to contribute to existing literature for future research in the case of oil-exporting countries.

Suggested Citation

  • Rıdvan Karacan & Shahriyar Mukhtarov & İsmail Barış & Aykut İşleyen & Mehmet Emin Yardımcı, 2021. "The Impact of Oil Price on Transition toward Renewable Energy Consumption? Evidence from Russia," Energies, MDPI, vol. 14(10), pages 1-14, May.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:10:p:2947-:d:558024
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    References listed on IDEAS

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