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Regional spillover effects of renewable energy generation in Italy

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  • Natalia Magnani

    ()
    (University of Trento, Dipartimento di Sociologia e Ricerca Sociale)

  • Andrea Vaona

    ()
    (Department of Economics (University of Verona))

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.

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Bibliographic Info

Paper provided by University of Verona, Department of Economics in its series Working Papers with number 12/2011.

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Length: 19
Date of creation: Aug 2011
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Handle: RePEc:ver:wpaper:12/2011

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Keywords: renewable energy generation; economic growth; panel unit root and cointegration tests; Granger causality; Italy; panel error correction model; regions.;

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Cited by:
  1. Shahbaz, Muhammad & Zeshan, Muhammad & Afza, Talat, 2012. "Is energy consumption effective to spur economic growth in Pakistan? New evidence from bounds test to level relationships and Granger causality tests," Economic Modelling, Elsevier, vol. 29(6), pages 2310-2319.
  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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