Clean energy, non-clean energy, and economic growth in the MIST countries

Hsiao-Tien Pao, Yi-Ying Li and Hsin-Chia Fu,

Energy Policy, 2014, vol. 67, issue C, 932-942

Abstract: This paper explores the causal relationship between clean (renewable/nuclear) and non-clean energy consumption and economic growth in emerging economies of the MIST (Mexico, Indonesia, South Korea, and Turkey) countries. The panel co-integration tests reveal that there is a long-term equilibrium relationship among GDP, capital formation, labor force, renewable/nuclear, and fossil fuel energy consumption. The panel causality results indicate that (1) there is a positive unidirectional short-run causality from fossil fuel energy consumption to economic growth with a bidirectional long-run causality; (2) there is a unidirectional long-run causality from renewable energy consumption to economic growth with positive bidirectional short-run causality, and a long-run causality from renewable to fossil fuel energy consumption with negative short-run feedback effects; and (3) there is a bidirectional long-run causality between nuclear energy consumption and economic growth and a long-run causality from fossil fuel energy consumption to nuclear energy consumption with positive short-run feedback effects. These suggest that MIST countries should be energy-dependent economies and that energy conservation policies may depress their economic development. However, developing renewable and nuclear energy is a viable solution for addressing energy security and climate change issues, and creating clean and fossil fuel energy partnerships could enhance a sustainable energy economy.

Keywords: Clean energy consumption; MIST Countries; Panel causality (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (52)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:67:y:2014:i:c:p:932-942

DOI: 10.1016/j.enpol.2013.12.039

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