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On the causal dynamics between economic growth, renewable energy consumption, CO2 emissions and trade openness: Fresh evidence from BRICS countries

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  • Sebri, Maamar
  • Ben Salha, Ousama

Abstract

The current study investigates the causal relationship between economic growth and renewable energy consumption in the BRICS countries over the period 1971-2010 within a multivariate framework. The ARDL bounds testing approach to cointegration and vector error correction model (VECM) are used to examine the long-run and causal relationships between economic growth, renewable energy consumption, trade openness and carbon dioxide emissions. Empirical evidence shows that, based on the ARDL estimates, there exist long-run equilibrium relationships among the competing variables. Regarding the VECM results, bi-directional Granger causality exists between economic growth and renewable energy consumption, suggesting the feedback hypothesis, which can explain the role of renewable energy in stimulating economic growth in BRICS countries.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 52535.

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Date of creation: 25 Dec 2013
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Handle: RePEc:pra:mprapa:52535

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Keywords: ARDL; BRICS; Granger causality; Economic growth; Renewable energy.;

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