IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i19p8627-d1758242.html

Empirical Analysis of the Energy–Growth Nexus with Machine Learning and Panel Causality: Evidence from Disaggregated Energy Sources

Author

Listed:
  • Irem Ersöz Kaya

    (Department of Computer Engineering, Tarsus University, Tarsus 33400, Türkiye)

  • Suna Korkmaz

    (Department of Economics, Bandırma Onyedi Eylül University, Bandırma 10200, Türkiye)

Abstract

The relationship between energy consumption and economic growth remains a critical and complex issue in both economic and environmental research. This study investigates the disaggregated effects of primary energy sources on GDP growth across four country groups, including G20, OECD founding members (OECDf), all OECD members (OECDa), and a global subset (World), using data from the Our World in Data and World Bank. While prior studies often rely on aggregate energy use, this study investigates the disaggregated effects of primary energy sources on GDP growth across four country groups: G20, OECD founding members (OECDf), all OECD members (OECDa), and a global subset (World). To assess these relationships, both multiple linear regression and a multilayer feedforward neural network (MLP) model were employed. While the regression model exhibited low explanatory power across all groups, the MLP offered more accurate and flexible predictions by capturing nonlinear dynamics. The model exhibited high predictive performance, with Pearson correlation coefficients ranging from 0.80 to 0.94 and intraclass correlation coefficients exceeding 0.87 across all test datasets. Predictive accuracy was strongest in more homogenous and economically stable groups such as the G20 and OECDf, while wider confidence intervals in the OECDa and World datasets indicated increased variability, likely due to heterogeneous energy structures and data quality limitations—particularly for renewables prior to 2010. These findings highlight the effectiveness of machine learning in modeling complex energy–growth relationships and underscore the importance of accounting for energy source diversity and national context in empirical analyses.

Suggested Citation

  • Irem Ersöz Kaya & Suna Korkmaz, 2025. "Empirical Analysis of the Energy–Growth Nexus with Machine Learning and Panel Causality: Evidence from Disaggregated Energy Sources," Sustainability, MDPI, vol. 17(19), pages 1-29, September.
  • Handle: RePEc:gam:jsusta:v:17:y:2025:i:19:p:8627-:d:1758242
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/19/8627/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/17/19/8627/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
    2. Sen, Doruk & Tunç, K.M. Murat & Günay, M. Erdem, 2021. "Forecasting electricity consumption of OECD countries: A global machine learning modeling approach," Utilities Policy, Elsevier, vol. 70(C).
    3. Stamatios Ntanos & Michalis Skordoulis & Grigorios Kyriakopoulos & Garyfallos Arabatzis & Miltiadis Chalikias & Spyros Galatsidas & Athanasios Batzios & Apostolia Katsarou, 2018. "Renewable Energy and Economic Growth: Evidence from European Countries," Sustainability, MDPI, vol. 10(8), pages 1-13, July.
    4. Salim, Ruhul A. & Hassan, Kamrul & Shafiei, Sahar, 2014. "Renewable and non-renewable energy consumption and economic activities: Further evidence from OECD countries," Energy Economics, Elsevier, vol. 44(C), pages 350-360.
    5. Hemant Kumar Sah & Gyanendra Singh Sisodia & Gouher Ahmed & Aqila Rafiuddin & Naseem Abidi, 2023. "The Role of Energy Consumption and Economic Growth on Carbon Emission- Application of Artificial Neural Network," International Journal of Energy Economics and Policy, Econjournals, vol. 13(6), pages 591-596, November.
    6. Cogoljević, Dušan & Alizamir, Meysam & Piljan, Ivan & Piljan, Tatjana & Prljić, Katarina & Zimonjić, Stefan, 2018. "A machine learning approach for predicting the relationship between energy resources and economic development," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 495(C), pages 211-214.
    7. Apergis, Nicholas & Payne, James E., 2010. "Renewable energy consumption and economic growth: Evidence from a panel of OECD countries," Energy Policy, Elsevier, vol. 38(1), pages 656-660, January.
    8. Gyimah, Justice & Yao, Xilong & Tachega, Mark Awe & Sam Hayford, Isaac & Opoku-Mensah, Evans, 2022. "Renewable energy consumption and economic growth: New evidence from Ghana," Energy, Elsevier, vol. 248(C).
    9. T. W. Swan, 1956. "ECONOMIC GROWTH and CAPITAL ACCUMULATION," The Economic Record, The Economic Society of Australia, vol. 32(2), pages 334-361, November.
    10. Nurcan Kilinc-Ata, 2025. "Investigation of the Impact of Environmental Degradation on the Transition to Clean Energy: New Evidence from Sultanate of Oman," Energies, MDPI, vol. 18(4), pages 1-15, February.
    11. Namahoro, Jean Pierre & Wu, Qiaosheng & Xiao, Haijun & Zhou, Na, 2021. "The asymmetric nexus of renewable energy consumption and economic growth: New evidence from Rwanda," Renewable Energy, Elsevier, vol. 174(C), pages 336-346.
    12. Kahia, Montassar & Moulahi, Tarek & Mahfoudhi, Sami & Boubaker, Sabri & Omri, Anis, 2022. "A machine learning process for examining the linkage among disaggregated energy consumption, economic growth, and environmental degradation," Resources Policy, Elsevier, vol. 79(C).
    13. Ozturk, Ilhan, 2010. "A literature survey on energy-growth nexus," Energy Policy, Elsevier, vol. 38(1), pages 340-349, January.
    14. Bhattacharya, Mita & Paramati, Sudharshan Reddy & Ozturk, Ilhan & Bhattacharya, Sankar, 2016. "The effect of renewable energy consumption on economic growth: Evidence from top 38 countries," Applied Energy, Elsevier, vol. 162(C), pages 733-741.
    15. Zhang, Long & Padhan, Hemachandra & Singh, Sanjay Kumar & Gupta, Monika, 2024. "The impact of renewable energy on inflation in G7 economies: Evidence from artificial neural networks and machine learning methods," Energy Economics, Elsevier, vol. 136(C).
    16. Cosimo Magazzino & Marco Mele & Giovanna Morelli, 2021. "The Relationship between Renewable Energy and Economic Growth in a Time of Covid-19: A Machine Learning Experiment on the Brazilian Economy," Sustainability, MDPI, vol. 13(3), pages 1-22, January.
    17. Khan, Atif Maqbool & Wyrwa, Artur, 2025. "Integrating machine learning and econometric models to uncover macroeconomic determinants of renewable energy production in the selected European countries," Energy, Elsevier, vol. 333(C).
    18. Rahman, Mohammad Mafizur & Velayutham, Eswaran, 2020. "Renewable and non-renewable energy consumption-economic growth nexus: New evidence from South Asia," Renewable Energy, Elsevier, vol. 147(P1), pages 399-408.
    19. Mohamed F. Abd El-Aal & Hasan Amin Mohamed Mahmoud & Abdelsamiea Tahsin Abdelsamiea & Marwa Samir Hegazy, 2024. "Leveraging Machine Learning to Assess the Impact of Energy Consumption on Global GDP Growth: What Actions should be taken Globally toward Environmental Concerns?," International Journal of Energy Economics and Policy, Econjournals, vol. 14(4), pages 108-115, July.
    20. Kahia, Montassar & Aïssa, Mohamed Safouane Ben & Lanouar, Charfeddine, 2017. "Renewable and non-renewable energy use - economic growth nexus: The case of MENA Net Oil Importing Countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 71(C), pages 127-140.
    21. Inglesi-Lotz, Roula, 2016. "The impact of renewable energy consumption to economic growth: A panel data application," Energy Economics, Elsevier, vol. 53(C), pages 58-63.
    22. Mahalingam, Brinda & Orman, Wafa Hakim, 2018. "GDP and energy consumption: A panel analysis of the US," Applied Energy, Elsevier, vol. 213(C), pages 208-218.
    23. Lu, Fei & Ma, Feng & Hu, Shiyang, 2024. "Does energy consumption play a key role? Re-evaluating the energy consumption-economic growth nexus from GDP growth rates forecasting," Energy Economics, Elsevier, vol. 129(C).
    24. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chang, Chiu-Lan & Fang, Ming, 2022. "Renewable energy-led growth hypothesis: New insights from BRICS and N-11 economies," Renewable Energy, Elsevier, vol. 188(C), pages 788-800.
    2. Jeffrey Kouton, 2021. "The impact of renewable energy consumption on inclusive growth: panel data analysis in 44 African countries," Economic Change and Restructuring, Springer, vol. 54(1), pages 145-170, February.
    3. Namahoro, J.P. & Nzabanita, J. & Wu, Q., 2021. "The impact of total and renewable energy consumption on economic growth in lower and middle- and upper-middle-income groups: Evidence from CS-DL and CCEMG analysis," Energy, Elsevier, vol. 237(C).
    4. Fang, Zheng & Chen, Yang, 2017. "Human capital, energy, and economic development – Evidence from Chinese provincial data," RIEI Working Papers 2017-03, Xi'an Jiaotong-Liverpool University, Research Institute for Economic Integration.
    5. Nguyen Ngoc Thach, 2024. "Bayesian Hierarchical Modeling of Individual Effects: Renewables and Non-Renewables on Global Economic Growth," SAGE Open, , vol. 14(3), pages 21582440241, August.
    6. Shahbaz, Muhammad & Raghutla, Chandrashekar & Chittedi, Krishna Reddy & Jiao, Zhilun & Vo, Xuan Vinh, 2020. "The effect of renewable energy consumption on economic growth: Evidence from the renewable energy country attractive index," Energy, Elsevier, vol. 207(C).
    7. Zafar, Muhammad Wasif & Shahbaz, Muhammad & Hou, Fujun & Sinha, Avik, 2018. "¬¬¬¬¬¬From Nonrenewable to Renewable Energy and Its Impact on Economic Growth: Silver Line of Research & Development Expenditures in APEC Countries," MPRA Paper 90611, University Library of Munich, Germany, revised 10 Dec 2018.
    8. Rabie Said & Muhammad Ishaq Bhatti & Ahmed Imran Hunjra, 2022. "Toward Understanding Renewable Energy and Sustainable Development in Developing and Developed Economies: A Review," Energies, MDPI, vol. 15(15), pages 1-12, July.
    9. Nyiko Worship Hlongwane & Hlalefang Khobai, 2025. "The Impact of the Renewable Energy Transition on Economic Growth in BRICS Nations," Energies, MDPI, vol. 18(16), pages 1-28, August.
    10. Muhammad Shahbaz & Naceur Khraief & Robert L. Czudaj, 2020. "Renewable energy consumption-economic growth nexus in G7 countries: New evidence from a nonlinear ARDL approach," Economics Bulletin, AccessEcon, vol. 40(4), pages 2828-2843.
    11. Hongwen Jia & Shugang Fan & Miao Xia, 2023. "The Impact of Renewable Energy Consumption on Economic Growth: Evidence from Countries along the Belt and Road," Sustainability, MDPI, vol. 15(11), pages 1-11, May.
    12. Mahfuzur Rahman & Ngu Wang Keat & Md Abdul Kaium Masud & Mohamed Albaity, 2024. "Powering Growth: The Dynamic Impact of Renewable Energy on GDP in ASEAN-5," International Journal of Energy Economics and Policy, Econjournals, vol. 14(5), pages 118-130, September.
    13. Radmehr, Riza & Henneberry, Shida Rastegari & Shayanmehr, Samira, 2021. "Renewable Energy Consumption, CO2 Emissions, and Economic Growth Nexus: A Simultaneity Spatial Modeling Analysis of EU Countries," Structural Change and Economic Dynamics, Elsevier, vol. 57(C), pages 13-27.
    14. Minglin Wang & Si Tan & Yunzhe Wang & Zhengxia He & Shaolong Zeng, 2023. "The Spatial Spillover Effect of Clean Energy Development on Economic Development: A Case of Theoretical and Empirical Analyses from China," IJERPH, MDPI, vol. 20(4), pages 1-19, February.
    15. Nadia Singh & Richard Nyuur & Ben Richmond, 2019. "Renewable Energy Development as a Driver of Economic Growth: Evidence from Multivariate Panel Data Analysis," Sustainability, MDPI, vol. 11(8), pages 1-18, April.
    16. Okumus, İlyas & Guzel, Arif Eser & Destek, Mehmet Akif, 2021. "Renewable, Non-renewable Energy Consumption and Economic Growth Nexus in G7: Fresh Evidence from CS-ARDL," MPRA Paper 114136, University Library of Munich, Germany.
    17. Muntasir Murshed & Haider Mahmood & Tarek Tawfik Yousef Alkhateeb & Mohga Bassim, 2020. "The Impacts of Energy Consumption, Energy Prices and Energy Import-Dependency on Gross and Sectoral Value-Added in Sri Lanka," Energies, MDPI, vol. 13(24), pages 1-22, December.
    18. Yugang He & Panpan Huang, 2022. "Exploring the Forms of the Economic Effects of Renewable Energy Consumption: Evidence from China," Sustainability, MDPI, vol. 14(13), pages 1-16, July.
    19. Marques, António Cardoso & Fuinhas, José Alberto & Neves, Sónia Almeida, 2018. "Ordinary and Special Regimes of electricity generation in Spain: How they interact with economic activity," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P1), pages 1226-1240.
    20. Daniel Ştefan Armeanu & Georgeta Vintilă & Ştefan Cristian Gherghina, 2017. "Does Renewable Energy Drive Sustainable Economic Growth? Multivariate Panel Data Evidence for EU-28 Countries," Energies, MDPI, vol. 10(3), pages 1-21, March.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:17:y:2025:i:19:p:8627-:d:1758242. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.