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Examining the Connection amongst Renewable Energy, Economic Growth and Carbon Dioxide Emissions in Algeria

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  • Salah Eddine SARİ HASSOUN

    (Faculty Abou Bekr Belkaid of Economics, Business, and Management science, POLDEVA Laboratory, University of Tlemcen, Algeria)

  • Mohammed MEKİDİCHE

    (Faculty of Economics and Commerce, University of Tlemcen, -Maghnia Annex-, Algeria)

  • Mohammed Seghir GUELLİ

    (Faculty of Economics and Commerce, University of Mascara, MCLDL Laboratory, Algeria)

Abstract

In this paper, we shall study the relationship between renewable energy, economic growth (GDP), carbon dioxide emissions and with control variable that are estimated into realized volatility and to verify if the EKC hypothesis is accepted or not. This study is focussed on the Algerian situation during the periods of 1995-2016 and we employed the VECM procedure and Granger causality to estimate the short and long-run coefficients. We found with VECM that an increase in carbon dioxide emissions, fossil energy consumption and production will raise the level of economic growth, while an increase in GDP, fossil energy consumption and production will upsurge the level of carbon dioxide emissions, but an increase in renewable energy consumption will reduce both GDP and carbon dioxide emissions. We concluded in the short-term that there’s bidirectional causality between carbon dioxide emissions and GDP and there is unidirectional causality running from renewable energy consumption to carbon dioxide emissions.Classification-JEL: C01, C2, C24, N7

Suggested Citation

  • Salah Eddine SARİ HASSOUN & Mohammed MEKİDİCHE & Mohammed Seghir GUELLİ, 2018. "Examining the Connection amongst Renewable Energy, Economic Growth and Carbon Dioxide Emissions in Algeria," EKOIST Journal of Econometrics and Statistics, Istanbul University, Faculty of Economics, vol. 14(28), pages 199-223, December.
    • Handle: RePEc:ist:ekoist:v:14:y:2018:i:29:p:199-223
    DOI: 10.26650/ekoist.2018.14.29.0013
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    Cited by:

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    More about this item

    Keywords

    Environment; Renewable Energy; Economic Growth; Carbon Dioxide Emissions; EKC Hypothesis; VECM Model; Granger Causality;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • P18 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Energy; Environment
    • 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

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