Electricity Consumption, Renewable Energy Production, and Current Account of Organisation for Economic Co-Operation and Development Countries: Implications for Sustainability

Suwastika Naidu (), Anand Chand (), Atishwar Pandaram and Sunia Vosikata
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Suwastika Naidu: School of Business & Management, University of the South Pacific, Private Mail Bag, Suva 1168, Fiji
Anand Chand: School of Management, College of Business, Hospitality & Tourism, Fiji National University, Suva 1544, Fiji
Atishwar Pandaram: School of Business & Management, University of the South Pacific, Private Mail Bag, Suva 1168, Fiji
Sunia Vosikata: School of Business & Management, University of the South Pacific, Private Mail Bag, Suva 1168, Fiji

Sustainability, 2024, vol. 16, issue 9, 1-21

Abstract: This paper uses the bootstrapped Granger Causality Testing approach to investigate the relationship between electricity consumption, renewable energy production, and the current account of the six OECD countries. One of the main advantages of using this approach is that it captures the cross-section dependence in our sample and applies the Seemingly Unrelated Regression (SUR) to examine the causality relationship between the variables. The empirical findings show the presence of cross-section dependence in our sample as the six Organisation for Economic Co-operation and Development (OECD) countries share resources, capabilities, and key competencies. Notably, a unidirectional causality exists running from electric power consumption to the current account of the USA. The current account balance causes electric power consumption in the case of France and Switzerland. The tri-variate causality relationship between electricity consumption, renewable energy production, and current account balance could not be established in the case of Germany, Finland, or the UK.

Keywords: renewable energy; current account; bootstrap; granger causality; seemingly unrelated regression (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
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