Evidence on clean energy consumption and business cycle: A global perspective

Meng Yan and Kai Shi

Natural Resources Forum, 2021, vol. 45, issue 3, 230-255

Abstract: This paper aims to investigate the heterogeneous patterns of clean energy consumption at business cycle frequencies from 1970 to 2017. Specifically, the paper provides a systematic analysis of this relationship in a comprehensive cross‐country panel by extracting the cyclical components of the clean energy consumption and gross domestic product (GDP) series based on the Hodrick–Prescott filter. Focusing on the cyclical components, we conclude the stylised facts as follows: (a) clean energy consumption is procyclical in advanced economies and developing economies, but acyclical in the Organization of the Petroleum Exporting Countries (OPEC); (b) clean energy consumption is cyclically more volatile than GDP in a typical country; (c) the correlation between cyclicality of clean energy consumption and GDP per capita is more intricate in different country groups; and (d) clean energy consumption is positively correlated with the oil price in advanced economies and developing economies, and negatively correlated in OPEC. These stylised facts are potentially important for establishing empirical and theoretical models to exploit the consequences and impacts of clean energy consumption.

Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://doi.org/10.1111/1477-8947.12223

Related works:
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:wly:natres:v:45:y:2021:i:3:p:230-255

Access Statistics for this article

More articles in Natural Resources Forum from Blackwell Publishing
Bibliographic data for series maintained by Wiley Content Delivery ().