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The Relationship between Economic Growth, Renewable Energy, and CO2 Emissions: Evidence from Panel Data Approach

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  • Majid Mahmoodi

    (Faculty of Management, Economics and Accounting, Velayat University, Iranshahr, Iran)

Abstract

The aim of the present study is to examine the relationship between economic growth, renewable energy (RE) and carbon dioxide emission (CO2) for a panel of 11 developing countries over the period 2000 2014. The panel cointegration and panel vector error correction model causality is employed to examine the long-run and causal relationships between the variables. The results of Kao and Pedroni panel cointegration test indicate the existence of long-run relationship between economic growth, RE and CO2 emissions. Also the panel causality results indicate bidirectional causality between RE and CO2 emission, bidirectional causality between gross domestic product (GDP) and CO2, and unidirectional causality from GDP to RE. Furthermore, the results of panel dynamic ordinary least squares estimates show the positive impact of economic growth on CO2 emissions and negative impact of RE on CO2 emissions.

Suggested Citation

  • Majid Mahmoodi, 2017. "The Relationship between Economic Growth, Renewable Energy, and CO2 Emissions: Evidence from Panel Data Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 7(6), pages 96-102.
    • Handle: RePEc:eco:journ2:2017-06-12
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    References listed on IDEAS

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    Cited by:

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    2. Sebastian Cuadros & Yeny E. Rodríguez & Javier Contreras, 2020. "Dynamic Data Envelopment Analysis Model Involving Undesirable Outputs in the Electricity Power Generation Sector: The Case of Latin America and the Caribbean Countries," Energies, MDPI, vol. 13(24), pages 1-20, December.
    3. Daniel Balsalobre-Lorente & Nuno Carlos Leitão & Festus Victor Bekun, 2021. "Fresh Validation of the Low Carbon Development Hypothesis under the EKC Scheme in Portugal, Italy, Greece and Spain," Energies, MDPI, vol. 14(1), pages 1-17, January.
    4. Mirziyoyeva, Ziroat & Salahodjaev, Raufhon, 2022. "Renewable energy and CO2 emissions intensity in the top carbon intense countries," Renewable Energy, Elsevier, vol. 192(C), pages 507-512.
    5. Nuno Carlos Leitão, 2021. "The Effects of Corruption, Renewable Energy, Trade and CO 2 Emissions," Economies, MDPI, vol. 9(2), pages 1-19, April.
    6. Adebayo, Tomiwa Sunday & Awosusi, Abraham Ayobamiji & Bekun, Festus Victor & Altuntaş, Mehmet, 2021. "Coal energy consumption beat renewable energy consumption in South Africa: Developing policy framework for sustainable development," Renewable Energy, Elsevier, vol. 175(C), pages 1012-1024.
    7. Papież, Monika & Śmiech, Sławomir & Frodyma, Katarzyna, 2019. "Effects of renewable energy sector development on electricity consumption – Growth nexus in the European Union," Renewable and Sustainable Energy Reviews, Elsevier, vol. 113(C), pages 1-1.
    8. Leadina Sanchez & Carmen V squez & Amelec Viloria, 2018. "The Data Envelopment Analysis to Determine Efficiency of Latin American Countries for Greenhouse Gases Control in Electric Power Generation," International Journal of Energy Economics and Policy, Econjournals, vol. 8(3), pages 197-208.
    9. Naveed Razzaq & Faqeer Muhammad & Rehmat Karim & Muhammad Tariq & Khair Muhammad, 2021. "The Nexus between Energy, Environment and Growth: Evidence from Latin-American Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 11(1), pages 82-87.
    10. Hong, Xudong & Wu, Shengnan & Zhang, Xueliang, 2022. "Clean energy powers energy poverty alleviation: Evidence from Chinese micro-survey data," Technological Forecasting and Social Change, Elsevier, vol. 182(C).
    11. Nuno Carlos Leitão & Daniel Balsalobre Lorente, 2020. "The Linkage between Economic Growth, Renewable Energy, Tourism, CO 2 Emissions, and International Trade: The Evidence for the European Union," Energies, MDPI, vol. 13(18), pages 1-16, September.
    12. Roberto J. Santill n-Salgado & Humberto Valencia-Herrera & Francisco Venegas-Mart nez, 2020. "On the Relations among CO2 Emissions, Gross Domestic Product, Energy Consumption, Electricity Use, Urbanization, and Income Inequality for a Sample of 134 Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 10(6), pages 195-207.
    13. Gulmira Azretbergenova & Beybit Syzdykov & Talgat Niyazov & Turysbekova Gulzhan & Nazira Yskak, 2021. "The Relationship between Renewable Energy Production and Employment in European Union Countries: Panel Data Analysis," International Journal of Energy Economics and Policy, Econjournals, vol. 11(3), pages 20-26.
    14. Simona Andreea Apostu & Mirela Panait & Daniel Balsalobre-Lorente & Diogo Ferraz & Irina Gabriela Rădulescu, 2022. "Energy Transition in Non-Euro Countries from Central and Eastern Europe: Evidence from Panel Vector Error Correction Model," Energies, MDPI, vol. 15(23), pages 1-21, December.
    15. Nano Prawoto & Agus Tri Basuki, 2020. "Effect of Macroeconomic Indicators and CO2 Emission on Indonesian Economic Growth," International Journal of Energy Economics and Policy, Econjournals, vol. 10(6), pages 354-358.

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    More about this item

    Keywords

    Economic Growth; Renewable Energy; CO2 Emissions; Panel Data;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General

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