IDEAS home Printed from https://ideas.repec.org/a/sae/enejou/v40y2019i4p1-24.html

The Interconnections between Renewable Energy, Economic Development and Environmental Pollution: A Simultaneous Equation System Approach

Author

Listed:
  • Elias Soukiazis
  • Sara Proença
  • Pedro A. Cerqueira

Abstract

Although the relationship between renewable energy and economic performance has attracted the interest of researchers in recent years, most of the analysis has focused on economic growth, which does not reflect the quality of standards of living. We employ a different approach measuring the impact of renewable energy consumption on the Human Development Index, which also considers qualitative characteristics. Using a simultaneous equation system approach that describes the interrelations between economic variables, renewable energy and pollution emissions with feedback effects, we provide robust evidence for a set of 28 OECD countries over the period 2004-2015, that renewable energy, human and physical capital are important factors for explaining the degree of sustainable development. Renewable energy consumption is mostly determined by higher levels of human capital, R&D, and the countries’ development stage. Furthermore, the development level, total energy consumption, and the education level are important for explaining environmental pollution.

Suggested Citation

  • Elias Soukiazis & Sara Proença & Pedro A. Cerqueira, 2019. "The Interconnections between Renewable Energy, Economic Development and Environmental Pollution: A Simultaneous Equation System Approach," The Energy Journal, , vol. 40(4), pages 1-24, July.
    • Handle: RePEc:sae:enejou:v:40:y:2019:i:4:p:1-24
    DOI: 10.5547/01956574.40.4.esou
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.5547/01956574.40.4.esou
    Download Restriction: no
    File URL: https://libkey.io/10.5547/01956574.40.4.esou?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Omri, Anis, 2013. "CO2 emissions, energy consumption and economic growth nexus in MENA countries: Evidence from simultaneous equations models," Energy Economics, Elsevier, vol. 40(C), pages 657-664.
    2. Ouedraogo, Nadia S., 2013. "Energy consumption and human development: Evidence from a panel cointegration and error correction model," Energy, Elsevier, vol. 63(C), pages 28-41.
    3. Apergis, Nicholas & Payne, James E., 2012. "Renewable and non-renewable energy consumption-growth nexus: Evidence from a panel error correction model," Energy Economics, Elsevier, vol. 34(3), pages 733-738.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Junda Qiu & Peng Li & Congzhe You & Honghui Fan, 2023. "Research of the impact of economic decline on air quality in Wuhan under COVID-19 epidemic," PLOS ONE, Public Library of Science, vol. 18(3), pages 1-15, March.
    2. Luo, Yi-Lang & Li, Wen-Bo & Chen, Xuesheng, 2025. "Dynamic relationship between stock markets and renewable energy development: Evidence from cross-country data," Economic Analysis and Policy, Elsevier, vol. 87(C), pages 1262-1274.
    3. Mahmut Unsal Sasmaz & Emre Sakar & Yunus Emre Yayla & Ulas Akkucuk, 2020. "The Relationship between Renewable Energy and Human Development in OECD Countries: A Panel Data Analysis," Sustainability, MDPI, vol. 12(18), pages 1-16, September.
    4. Panagiotis Pegkas, 2024. "Energy Consumption and Human Capital: Does Human Capital Stimulate Renewable Energy? The Case of Greece," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(4), pages 17256-17283, December.
    5. Tehmina Zahid & Noman Arshed & Mubbasher Munir & Kamran Hameed, 2021. "Role of energy consumption preferences on human development: a study of SAARC region," Economic Change and Restructuring, Springer, vol. 54(1), pages 121-144, February.
    6. Stephen Taiwo Onifade & Bright Akwasi Gyamfi & Andrew Adewale Alola & Ilham Haouas, 2024. "Assessing the drivers of (non)conventional energy portfolios in the South Asian economies: The role of technological innovation and human development," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(3), pages 1762-1773, June.
    7. Simionescu, Mihaela & Radulescu, Magdalena & Belascu, Lucian, 2024. "The impact of renewable energy consumption and energy poverty on pollution in Central and Eastern European countries," Renewable Energy, Elsevier, vol. 236(C).

    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. Nagmi Moftah Aimer, 2020. "Renewable energy consumption, financial development and economic growth: Evidence from panel data for the Middle East and North African countries," Economics Bulletin, AccessEcon, vol. 40(3), pages 2058-2072.
    2. Chen, Chaoyi & Pinar, Mehmet & Stengos, Thanasis, 2021. "Determinants of renewable energy consumption: Importance of democratic institutions," Renewable Energy, Elsevier, vol. 179(C), pages 75-83.
    3. Omri, Anis & Ben Mabrouk, Nejah & Sassi-Tmar, Amel, 2015. "Modeling the causal linkages between nuclear energy, renewable energy and economic growth in developed and developing countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 1012-1022.
    4. Yu, Tiffany Hui-Kuang & Huang, Meng-Chen & Huarng, Kun-Huang, 2016. "Causal complexity of economic development by energy consumption," Journal of Business Research, Elsevier, vol. 69(6), pages 2271-2276.
    5. Magdalena Osińska & Atif Maqbool Khan & Jacek Kwiatkowski, 2024. "Identifying Economic Factors of Renewable Energy Consumption—A Global Perspective," Energies, MDPI, vol. 17(15), pages 1-26, July.
    6. Sofien, Tiba & Omri, Anis, 2016. "Literature survey on the relationships between energy variables, environment and economic growth," MPRA Paper 82555, University Library of Munich, Germany, revised 14 Sep 2016.
    7. Bélaïd, Fateh & Youssef, Meriem, 2017. "Environmental degradation, renewable and non-renewable electricity consumption, and economic growth: Assessing the evidence from Algeria," Energy Policy, Elsevier, vol. 102(C), pages 277-287.
    8. Muhammad Shahbaz & Mehmet Akif Destek & Michael L. Polemis, 2018. "Do Foreign Capital and Financial Development Affect Clean Energy Consumption and Carbon Emissions? Evidence from BRICS and Next-11 Countries," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 68(4), pages 20-50, October-D.
    9. Tran, Nguyen Van & Tran, Quyet Van & Do, Linh Thi Thuy & Dinh, Linh Hong & Do, Ha Thi Thu, 2019. "Trade off between environment, energy consumption and human development: Do levels of economic development matter?," Energy, Elsevier, vol. 173(C), pages 483-493.
    10. Anatole Toinar Mogota & Djimoudjiel Djekonbe, 2022. "Renewable Energy and Economic Growth: The Role of Foreign Direct Investment in Sub-Saharan Africa," Economic Research Guardian, Mutascu Publishing, vol. 12(2), pages 115-128, December.
    11. repec:bcp:journl:v:9:y:2025:i:15:p:1396-1410 is not listed on IDEAS
    12. Omri, Anis & Nguyen, Duc Khuong, 2014. "On the determinants of renewable energy consumption: International evidence," Energy, Elsevier, vol. 72(C), pages 554-560.
    13. Mesbah Fathy Sharaf & Abdelhalem Mahmoud Shahen & Radi EL-Sayed Abdel-Gawad Issa, 2025. "Rethinking Growth in the Gulf: The Role of Renewable Energy, Electricity Use, and Economic Openness in Oil-Rich Economies," Sustainability, MDPI, vol. 17(19), pages 1-23, October.
    14. Dogan, Eyup & Seker, Fahri, 2016. "The influence of real output, renewable and non-renewable energy, trade and financial development on carbon emissions in the top renewable energy countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 60(C), pages 1074-1085.
    15. Dogan, Eyup & Seker, Fahri, 2016. "Determinants of CO2 emissions in the European Union: The role of renewable and non-renewable energy," Renewable Energy, Elsevier, vol. 94(C), pages 429-439.
    16. repec:ipg:wpaper:2014-535 is not listed on IDEAS
    17. Marra, Alessandro & Colantonio, Emiliano, 2021. "The path to renewable energy consumption in the European Union through drivers and barriers: A panel vector autoregressive approach," Socio-Economic Planning Sciences, Elsevier, vol. 76(C).
    18. Natnaporn Aeknarajindawat & Boonsri Suteerachai & Pornkul Suksod, 2020. "The Impact of Natural Resources, Renewable Energy, Economic Growth on Carbon Dioxide Emission in Malaysia," International Journal of Energy Economics and Policy, Econjournals, vol. 10(3), pages 211-218.
    19. Fateh Belaïd & Maha Harbaoui Zrelli, 2016. "Renewable and Non-Renewable Electricity Consumption, Carbon Emissions and GDP: Evidence From Mediterranean Countries," Working Papers 1037, Economic Research Forum, revised Aug 2016.
    20. Belaïd, Fateh & Zrelli, Maha Harbaoui, 2019. "Renewable and non-renewable electricity consumption, environmental degradation and economic development: Evidence from Mediterranean countries," Energy Policy, Elsevier, vol. 133(C).
    21. 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.
    22. 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.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

    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:sae:enejou:v:40:y:2019:i:4:p:1-24. 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: SAGE Publications (email available below). General contact details of provider: .

    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.