The effect of renewable energy consumption on economic growth: Evidence from the renewable energy country attractive index

Muhammad Shahbaz, Chandrashekar Raghutla (), Krishna Chittedi, Zhilun Jiao and Xuan Vinh Vo

Energy, 2020, vol. 207, issue C

Abstract: The use of non-renewable resources emits a high quantity of CO2 into environment, leading to a greenhouse effect, to reduce CO2 emissions all countries have shifted to use renewable energy sources. Therefore, this study re-examines the effect of renewable energy consumption on economic growth across 38 renewable-energy-consuming countries from 1990 to 2018. The dynamic ordinary least squares (DOLS), fully modified ordinary least squares (FMOLS) and heterogeneous non-causality approaches are applied. The empirical analysis confirms the presence of a long-run relationship between renewable energy consumption and economic growth. Further, we noted that renewable energy, non-renewable energy, capital and labor have positive impact on economic growth, particularly, renewable energy consumption has a positive impact on economic growth for 58% of the sample countries. The empirical results suggest that international cooperation agencies, energy organizers, governments, and associated bodies must act together in increasing renewable energy investment for low carbon growth in most of these economies.

Keywords: Renewable energy; Economic growth; Renewable energy country attractiveness index (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (104)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S036054422031269X
Full text for ScienceDirect subscribers only

Related works:
Working Paper: The Effect of Renewable Energy Consumption on Economic Growth: Evidence from the Renewable Energy Country Attractive Index (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:207:y:2020:i:c:s036054422031269x

DOI: 10.1016/j.energy.2020.118162

Access Statistics for this article

Energy is currently edited by Henrik Lund and Mark J. Kaiser

More articles in Energy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().