Renewable energy: An efficient mechanism to improve GDP
This article analyzes the effects of renewable energy on GDP for 116 economies in 2003 through Structural Equation Modeling (SEM) approach. In order to decipher the mechanism of how the use of renewables improves macroeconomic efficiency, we decompose GDP by the "expenditure approach". Although previous theory predicts positive effects of renewables on capital formation and trade balance, the SEM results show that renewables have a significant positive influence on capital formation only. The result that renewables do not have a significant impact on trade balance implies that renewables do not have an import substitution effect. Thus, we confirm the positive relationship between renewable energy and GDP through the path of increasing capital formation, but not for the path of increasing trade balance.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Lund, P.D., 2007. "Upfront resource requirements for large-scale exploitation schemes of new renewable technologies," Renewable Energy, Elsevier, vol. 32(3), pages 442-458.
- Gan, Lin & Eskeland, Gunnar S. & Kolshus, Hans H., 2007. "Green electricity market development: Lessons from Europe and the US," Energy Policy, Elsevier, vol. 35(1), pages 144-155, January.
- Söderholm, Patrik & Ek, Kristina & Pettersson, Maria, 2007. "Wind power development in Sweden: Global policies and local obstacles," Renewable and Sustainable Energy Reviews, Elsevier, vol. 11(3), pages 365-400, April.
- Chien, Taichen & Hu, Jin-Li, 2007. "Renewable energy and macroeconomic efficiency of OECD and non-OECD economies," Energy Policy, Elsevier, vol. 35(7), pages 3606-3615, July.
- Anderson, Dennis & Leach, Matthew, 2004. "Harvesting and redistributing renewable energy: on the role of gas and electricity grids to overcome intermittency through the generation and storage of hydrogen," Energy Policy, Elsevier, vol. 32(14), pages 1603-1614, September.
- Green, Chris & Baksi, Soham & Dilmaghani, Maryam, 2007. "Challenges to a climate stabilizing energy future," Energy Policy, Elsevier, vol. 35(1), pages 616-626, January.
- Toshihiko Masui, Tatsuya Hanaoka, Saeko Hikita, and Mikiko Kainuma, 2006. "Assessment of CO2 Reductions and Economic Impacts Considering Energy-Saving Investments," The Energy Journal, International Association for Energy Economics, vol. 0(Special I), pages 175-190.
- Lund, P.D., 2007. "Effectiveness of policy measures in transforming the energy system," Energy Policy, Elsevier, vol. 35(1), pages 627-639, January.
- Wamukonya, Njeri, 2007. "Solar home system electrification as a viable technology option for Africa's development," Energy Policy, Elsevier, vol. 35(1), pages 6-14, January.
When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:36:y:2008:i:8:p:3035-3042. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
If references are entirely missing, you can add them using this form.