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Understanding the Influence of Wind and Solar PV on Socioeconomic and Environmental Trends: A Non-causality Perspective

Author

Listed:
  • Palloma Silva

    (NOVA School of Science and Technology, NOVA University Lisbon, Portugal)

  • Roberta Amaral

    (Centro Universitário Serra dos Órgãos- UNIFESO, Brazil)

  • Patricia Fortes

    (CENSE- Centre for Environmental and Sustainability Research Energy and Climate, NOVA School of Science and Technology, NOVA University Lisbon, Portugal)

  • Isabel Soares

    (Faculty of Economics and Management and Center for Economics and Finance at U. Porto, University of Porto, Portugal)

Abstract

This paper investigates the non-causality perspective of economic growth, investment, social well-being, employment, GHG emissions on renewable energy sources (RES) (wind and solar PV), providing a comprehensive overview of renewable technologies that effect on socio-economic and environmental drivers. The analysis and enhancing linear regression techniques, addressing cross-country RES installed capacity heterogeneity, and applying time-lags techniques to better understand the temporal effect of RES´s investment. The study tested: I. economic growth in a country is related to the development of RESs, employment, investment. II. Increased RESs share positively impacts social well-being. III. RESs implementation reduces GHG emissions. Our findings suggest that RES positively influenced economic growth over time for countries with higher installed capacity. However, this statistically significant is not observed across countries with lower installed capacity nor across all indicators, like social well-being, employment, investment, which show modest growth trend over time. GHG emissions also showed an inverse trend, suggesting the needs the renewable electricity´s expansion accompanied by additional mitigation measures to reduce emissions. One limitation is the temporal restriction, which limits the assessment of long-run trends. Future research should focus on gathering a larger dataset for long-run trends analysis.

Suggested Citation

  • Palloma Silva & Roberta Amaral & Patricia Fortes & Isabel Soares, 2024. "Understanding the Influence of Wind and Solar PV on Socioeconomic and Environmental Trends: A Non-causality Perspective," International Journal of Energy Economics and Policy, Econjournals, vol. 14(5), pages 1-9, September.
    • Handle: RePEc:eco:journ2:2024-05-1
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    References listed on IDEAS

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    More about this item

    Keywords

    Renewable Energy; Investment; Economic Growth; Social; Employment; Greenhouse Gas Emissions;
    All these keywords.

    JEL classification:

    • C8 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs
    • C18 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Methodolical Issues: General
    • C19 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Other
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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