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Biomass energy consumption and economic growth nexus in OECD countries: A panel analysis

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  • Ajmi, Ahdi Noomen
  • Inglesi-Lotz, Roula

Abstract

This paper investigates the relationship between biomass energy consumption and economic growth for 26 OECD countries for 1980 to 2013 period. This study used panel unit root analyses, panel cointegration analyses, dynamic OLS analyses, fully modified OLS analyses and panel VECM Granger causality to examine the relationship. The results reveal the presence of long-run equilibrium relationship between the variables supporting the feedback hypothesis. As policy implication, OECD countries have to improve the biomass energy infrastructure as an important source of renewable energy to promote economic growth.

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  • Ajmi, Ahdi Noomen & Inglesi-Lotz, Roula, 2020. "Biomass energy consumption and economic growth nexus in OECD countries: A panel analysis," Renewable Energy, Elsevier, vol. 162(C), pages 1649-1654.
    • Handle: RePEc:eee:renene:v:162:y:2020:i:c:p:1649-1654
    DOI: 10.1016/j.renene.2020.10.002
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    References listed on IDEAS

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    1. Shahbaz, Muhammad & Rasool, Ghulam & Ahmed, Khalid & Mahalik, Mantu Kumar, 2016. "Considering the effect of biomass energy consumption on economic growth: Fresh evidence from BRICS region," Renewable and Sustainable Energy Reviews, Elsevier, vol. 60(C), pages 1442-1450.
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    3. Bilgili, Faik & Ozturk, Ilhan, 2015. "Biomass energy and economic growth nexus in G7 countries: Evidence from dynamic panel data," Renewable and Sustainable Energy Reviews, Elsevier, vol. 49(C), pages 132-138.
    4. Ozturk, Ilhan & Bilgili, Faik, 2015. "Economic growth and biomass consumption nexus: Dynamic panel analysis for Sub-Sahara African countries," Applied Energy, Elsevier, vol. 137(C), pages 110-116.
    5. Kao, Chihwa, 1999. "Spurious regression and residual-based tests for cointegration in panel data," Journal of Econometrics, Elsevier, vol. 90(1), pages 1-44, May.
    6. 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.
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    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q47 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy Forecasting

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