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Renewable and fossil energy, terrorism, economic growth, and trade: Evidence from France

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  • Mohamed, Hassen
  • Ben Jebli, Mehdi
  • Ben Youssef, Slim

Abstract

To the best of our knowledge, there is no econometric study on the causal relationship between renewable or fossil energies and terrorism, nor on terrorism in France. This paper tries to fill this gap and considers other variables as economic growth and trade openness. The autoregressive distributed lag approach and Granger causality are used for annual data on France covering the period 1980–2015. The Wald test confirms the existence of long-run relationships between the considered variables. Granger causality reveals long-run bidirectional causalities between all the variables. Interestingly, in the short-run, there are unidirectional causalities running from renewable energy to terrorism, and from terrorism to trade openness, and there is bidirectional causality between terrorism and economic growth. Long-run parameter estimates show that more renewable energy consumption and more trade increase both terrorism and economic growth. However, economic growth reduces terrorism in the long-run and appears as a powerful tool to combat terrorism in France. In addition, France is recommended to continue encouraging the use of renewable energies, and at the same time, to make more diplomatic efforts to resolve political and military conflicts in the world, and particularly in the Middle East.

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  • Mohamed, Hassen & Ben Jebli, Mehdi & Ben Youssef, Slim, 2019. "Renewable and fossil energy, terrorism, economic growth, and trade: Evidence from France," Renewable Energy, Elsevier, vol. 139(C), pages 459-467.
    • Handle: RePEc:eee:renene:v:139:y:2019:i:c:p:459-467
    DOI: 10.1016/j.renene.2019.02.096
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    More about this item

    Keywords

    Renewable and non-renewable energy; Terrorism; Economic growth; Autoregressive distributed lag; Granger causality; France;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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