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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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Paper provided by Università di Verona, Dipartimento di Scienze economiche 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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