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Regional spillover effects of renewable energy generation in Italy

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  • Natalia Magnani

    (University of Trento, Dipartimento di Sociologia e Ricerca Sociale)

  • Andrea Vaona

    (Department of Economics (University of Verona))

Abstract

In a multivariate setting, we document that renewable energy generation has a positive impact on economic growth at the regional level in Italy. We do so by adopting panel data unit-root and cointegration tests as well as Granger non-causality tests relying on the system GMM estimator. Our results are interpreted in three ways. Renewable energy generation alleviates balance-of-payments constraints and reduces the exposure of a regional economy to the volatility of the price of fossil fuels and to negative environmental and health externalities deriving from non-renewable energy generation. Therefore, our evidence supports policies promoting renewable energy generation.

Suggested Citation

  • Natalia Magnani & Andrea Vaona, 2011. "Regional spillover effects of renewable energy generation in Italy," Working Papers 12/2011, University of Verona, Department of Economics.
    • Handle: RePEc:ver:wpaper:12/2011
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    Keywords

    renewable energy generation; economic growth; panel unit root and cointegration tests; Granger causality; Italy; panel error correction model; regions.;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • N70 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - General, International, or Comparative
    • 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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