IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2024-02-10.html
   My bibliography  Save this article

Analyzing the Relationship between Renewable Energy Sources, Economic Growth and Energy Consumption in Greece

Author

Listed:
  • Bahman Huseynli

    (Lecturer, Department of Business Administration, Azerbaijan State University of Economics (UNEC), Baku, Azerbaijan; & Head of Labor Market Analysis Division, Azerbaijan Public Employment Agency, Baku, Azerbaijan)

Abstract

Renewable energy sources are one of the important economic factors of today. Energy resources have a great place for economic growth. There are many types of renewable energy sources, each of which is one of the indispensable elements for the development and development of countries. In this study, which measures the importance of energy consumption within the scope of economic growth and renewable energy, the effects of renewable energy sources and economic growth on energy consumption are investigated. In the study, the relationship between renewable energy sources, economic growth and energy consumption was examined by making panel cointegration analysis for Greece between 1997-2015. According to the results of the analysis, the panel data model established is significant at the 95% level. The independent factors explain 78% of the dependent variable's variation, according to R2. Energy consumption and renewable energy consumption were negatively correlated. A significant and positive relationship was found between economic growth and energy consumption at the 95% confidence level. An 1% increase in economic growth will increase energy consumption by about 15%. This result obtained because of the estimation also supports the theoretical expectation.

Suggested Citation

  • Bahman Huseynli, 2024. "Analyzing the Relationship between Renewable Energy Sources, Economic Growth and Energy Consumption in Greece," International Journal of Energy Economics and Policy, Econjournals, vol. 14(2), pages 89-95, March.
    • Handle: RePEc:eco:journ2:2024-02-10
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijeep/article/download/15356/7748
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijeep/article/view/15356
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Nigar Huseynli, 2022. "Impact of Revenues from Oil and Non-Oil Sectors on the Economic Growth of Azerbaijan," International Journal of Energy Economics and Policy, Econjournals, vol. 12(5), pages 31-35, September.
    2. Michael A. Toman & Barbora Jemelkova, 2003. "Energy and Economic Development: An Assessment of the State of Knowledge," The Energy Journal, , vol. 24(4), pages 93-112, October.
    3. Sadorsky, Perry, 2012. "Energy consumption, output and trade in South America," Energy Economics, Elsevier, vol. 34(2), pages 476-488.
    4. Cheng Hsiao, 2007. "Panel data analysis—advantages and challenges," TEST: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 16(1), pages 1-22, May.
    5. Im, Kyung So & Pesaran, M. Hashem & Shin, Yongcheol, 2003. "Testing for unit roots in heterogeneous panels," Journal of Econometrics, Elsevier, vol. 115(1), pages 53-74, July.
    6. Nigar Huseynli, 2022. "Effect of Renewable Energy and Traditional Energy Production on Economic Growth: The Case of Turkey and Azerbaijan," International Journal of Energy Economics and Policy, Econjournals, vol. 12(3), pages 257-261, May.
    7. Muhammad Shahbaz & Syed Jawad Hussain Shahzad & Mantu Kumar Mahalik & Perry Sadorsky, 2018. "How strong is the causal relationship between globalization and energy consumption in developed economies? A country-specific time-series and panel analysis," Applied Economics, Taylor & Francis Journals, vol. 50(13), pages 1479-1494, March.
    8. Pesaran, M. H. & Shin, Y. & Smith, R. P., 1997. "Pooled Estimation of Long-run Relationships in Dynamic Heterogeneous Panels," Cambridge Working Papers in Economics 9721, Faculty of Economics, University of Cambridge.
    9. Jeffrey M. Wooldridge, 2002. "Inverse probability weighted M-estimators for sample selection, attrition, and stratification," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 1(2), pages 117-139, August.
    10. Yener Altunbas & Ayhan Kapusuzoglu, 2011. "The Causality Between Energy Consumption and Economic Growth in United Kingdom," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 24(2), pages 60-67, January.
    11. Chontanawat, Jaruwan & Hunt, Lester C. & Pierse, Richard, 2008. "Does energy consumption cause economic growth?: Evidence from a systematic study of over 100 countries," Journal of Policy Modeling, Elsevier, vol. 30(2), pages 209-220.
    12. Kaddour Hadri, 2000. "Testing for stationarity in heterogeneous panel data," Econometrics Journal, Royal Economic Society, vol. 3(2), pages 148-161.
    13. Lee, Chien-Chiang & Chang, Chun-Ping & Chen, Pei-Fen, 2008. "Energy-income causality in OECD countries revisited: The key role of capital stock," Energy Economics, Elsevier, vol. 30(5), pages 2359-2373, September.
    14. Fang, Zheng & Chang, Youngho, 2016. "Energy, human capital and economic growth in Asia Pacific countries — Evidence from a panel cointegration and causality analysis," Energy Economics, Elsevier, vol. 56(C), pages 177-184.
    15. Lee, Chien-Chiang & Chang, Chun-Ping, 2008. "Energy consumption and economic growth in Asian economies: A more comprehensive analysis using panel data," Resource and Energy Economics, Elsevier, vol. 30(1), pages 50-65, January.
    16. H seyin Kalyoncu & Faruk G rsoy & Hasan G cen, 2013. "Causality Relationship between GDP and Energy Consumption in Georgia, Azerbaijan and Armenia," International Journal of Energy Economics and Policy, Econjournals, vol. 3(1), pages 111-117.
    17. Costantini, Valeria & Martini, Chiara, 2010. "The causality between energy consumption and economic growth: A multi-sectoral analysis using non-stationary cointegrated panel data," Energy Economics, Elsevier, vol. 32(3), pages 591-603, May.
    18. Lee, Chien-Chiang & Chiu, Yi-Bin, 2013. "Modeling OECD energy demand: An international panel smooth transition error-correction model," International Review of Economics & Finance, Elsevier, vol. 25(C), pages 372-383.
    19. Zheng Fang & Marcin Wolski, 2021. "Human capital, energy and economic growth in China: evidence from multivariate nonlinear Granger causality tests," Empirical Economics, Springer, vol. 60(2), pages 607-632, February.
    20. Shahbaz, Muhammad & Lean, Hooi Hooi & Shabbir, Muhammad Shahbaz, 2012. "Environmental Kuznets Curve hypothesis in Pakistan: Cointegration and Granger causality," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(5), pages 2947-2953.
    21. Cheng Hsiao, 2007. "Rejoinder on: Panel data analysis—advantages and challenges," TEST: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 16(1), pages 56-57, May.
    22. Yu, Eden S. H. & Jin, Jang C., 1992. "Cointegration tests of energy consumption, income, and employment," Resources and Energy, Elsevier, vol. 14(3), pages 259-266, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dedeoğlu, Dinçer & Kaya, Hüseyin, 2013. "Energy use, exports, imports and GDP: New evidence from the OECD countries," Energy Policy, Elsevier, vol. 57(C), pages 469-476.
    2. Farhani, Sahbi & Shahbaz, Muhammad & Sbia, Rashid & Chaibi, Anissa, 2014. "What does MENA region initially need: Grow output or mitigate CO2 emissions?," Economic Modelling, Elsevier, vol. 38(C), pages 270-281.
    3. Apergis, Nicholas & Payne, James E., 2009. "Energy consumption and economic growth in Central America: Evidence from a panel cointegration and error correction model," Energy Economics, Elsevier, vol. 31(2), pages 211-216.
    4. Farhani, Sahbi & Shahbaz, Muhammad & Sbia, Rashid, 2013. "What is MENA Region Initially Needed: Grow Output or Mitigate CO2 Emissions?," MPRA Paper 48859, University Library of Munich, Germany, revised 05 Aug 2013.
    5. repec:ipg:wpaper:2014-529 is not listed on IDEAS
    6. Apergis, Nicholas & Payne, James E., 2010. "Energy consumption and growth in South America: Evidence from a panel error correction model," Energy Economics, Elsevier, vol. 32(6), pages 1421-1426, November.
    7. Apergis, Nicholas & Payne, James E., 2009. "Energy consumption and economic growth: Evidence from the Commonwealth of Independent States," Energy Economics, Elsevier, vol. 31(5), pages 641-647, September.
    8. Dobnik, Frauke, 2011. "Energy Consumption and Economic Growth Revisited: Structural Breaks and Cross-section Dependence," Ruhr Economic Papers 303, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    9. Stern, David I. & Enflo, Kerstin, 2013. "Causality between energy and output in the long-run," Energy Economics, Elsevier, vol. 39(C), pages 135-146.
    10. David I. Stern, 2010. "The Role of Energy in Economic Growth," CCEP Working Papers 0310, Centre for Climate & Energy Policy, Crawford School of Public Policy, The Australian National University.
    11. Bashiri Behmiri, Niaz & Pires Manso, José R., 2012. "Crude oil conservation policy hypothesis in OECD (organisation for economic cooperation and development) countries: A multivariate panel Granger causality test," Energy, Elsevier, vol. 43(1), pages 253-260.
    12. David I. Stern, 2011. "From Correlation to Granger Causality," Crawford School Research Papers 1113, Crawford School of Public Policy, The Australian National University.
    13. repec:zbw:rwirep:0190 is not listed on IDEAS
    14. Zhang, Chuanguo & Xu, Jiao, 2012. "Retesting the causality between energy consumption and GDP in China: Evidence from sectoral and regional analyses using dynamic panel data," Energy Economics, Elsevier, vol. 34(6), pages 1782-1789.
    15. Belke, Ansgar & Dobnik, Frauke & Dreger, Christian, 2011. "Energy consumption and economic growth: New insights into the cointegration relationship," Energy Economics, Elsevier, vol. 33(5), pages 782-789, September.
    16. Bozoklu, Seref & Yilanci, Veli, 2013. "Energy consumption and economic growth for selected OECD countries: Further evidence from the Granger causality test in the frequency domain," Energy Policy, Elsevier, vol. 63(C), pages 877-881.
    17. Lee, Jung Wan, 2013. "The contribution of foreign direct investment to clean energy use, carbon emissions and economic growth," Energy Policy, Elsevier, vol. 55(C), pages 483-489.
    18. Ansgar Belke & Christian Dreger & Frauke de Haan, 2010. "Energy Consumption and Economic Growth – New Insights into the Cointegration Relationship," Ruhr Economic Papers 0190, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    19. Coers, Robin & Sanders, Mark, 2013. "The energy–GDP nexus; addressing an old question with new methods," Energy Economics, Elsevier, vol. 36(C), pages 708-715.
    20. Naser, Hanan, 2014. "On the cointegration and causality between Oil market, Nuclear Energy Consumption, and Economic Growth: Evidence from Developed Countries," MPRA Paper 65252, University Library of Munich, Germany, revised 25 Mar 2015.
    21. Ciarreta, A. & Zarraga, A., 2010. "Economic growth-electricity consumption causality in 12 European countries: A dynamic panel data approach," Energy Policy, Elsevier, vol. 38(7), pages 3790-3796, July.
    22. Frauke Dobnik, 2011. "Energy Consumption and Economic Growth Revisited: Structural Breaks and Cross-section Dependence," Ruhr Economic Papers 0303, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.

    More about this item

    Keywords

    Renewable Energy; Energy Economics; Energy Consumption; Economic Growth; Greece;
    All these keywords.

    JEL classification:

    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ2:2024-02-10. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.