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Are natural resources and oil prices a possible solution to renewable energy electricity? Evidence from global time series data

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  • Yu, Ti-Ming
  • Yan, Yu-Tong
  • Yin, Ya-Hua
  • Yang, Ming-Gao

Abstract

Numerous studies have inspected the link between renewable energy, economic development, and electricity production; however, studies of the nexus of consumption expenditures and renewable electricity are lacking in the existing literature. Hence, this research explored the nexus of electricity from renewable energy, total consumption expenditures, and renewable electricity output globally from 1985 to 2021. Economic growth, mineral, and oil prices, forest rents, and access to clean fuel technology (ACFCT) are added as contributing variables via employing Bootstrap quantile regression and Least squares methods as primary procedures. For robustness protocols, FMOLS, DOLS, and CCR as parametric methods and non-parametric Bootstrap with different mechanisms of NRR are included. The results unveil that total consumption expenditures negatively and significantly impact the median and upper quantiles. At the same time, electricity from renewable energy shows a weak impact in the upper quantile only. Besides, the results of the latter co-variates are also found to be significant in the least squares method. Moreover, Economic growth is negative but insignificant in the lower quantiles and positive and significant in the median and upper quantiles. Despite the structural breaks taken on economic growth in the least squares method, it completely and significantly impacts renewable electricity output. The influence of coal, mineral, oil prices, and natural gas is negative. Forest rents have an insignificant impact in the lower and median quantiles while positive and significant in the upper quantiles. Conversely, ACFCT has a negative and significant impact on the lower quantile, while a positive and significant impact on renewable electricity output in the upper quantiles. Robustness check analysis via both methods provides similar results. Based on the outcomes, this study proposes numerous policy implications concerning renewable electricity output by examining the effective role of consumption expenditures, electricity from renewable production, ACFCT, and forest rents.

Suggested Citation

  • Yu, Ti-Ming & Yan, Yu-Tong & Yin, Ya-Hua & Yang, Ming-Gao, 2023. "Are natural resources and oil prices a possible solution to renewable energy electricity? Evidence from global time series data," Resources Policy, Elsevier, vol. 86(PB).
    • Handle: RePEc:eee:jrpoli:v:86:y:2023:i:pb:s0301420723009996
    DOI: 10.1016/j.resourpol.2023.104288
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