Directional connectedness between green consumption of energy and economic complexity and: a quantile VAR analysis in Vietnam

Nguyen Thi Thu Ha (), Tran Thi Mai Hoa (), To Trung Thanh () and Le Thanh Ha ()
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Nguyen Thi Thu Ha: National Economics University
Tran Thi Mai Hoa: National Economics University
To Trung Thanh: National Economics University
Le Thanh Ha: National Economics University

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, 2025, vol. 27, issue 7, No 50, 16319-16343

Abstract: Abstract The goal of the analysis is to determine how Vietnam’s green energy consumption (GEC) and economic complexity (EC) relate to one another. Seven variables are examined from 1995 to 2020. In order to investigate the interdependence of these variables, this research makes use of quantile vector autoregression (QVAR). Knowledge sharing in production plays a fundamental role in safeguarding the energy system’s resilience in Vietnam, a connection that has been understated until now. The quantile at 50% signifies the average connectedness throughout the period, as computed through directional net connectedness over a dynamically evolving quantile, illustrating a high level of connectedness for both substantial positive changes (exceeding 80%) and the fluctuations in EC and GEC (falling below the 20% quantile). The findings indicate that both brief and prolonged periods influence dynamic connectivity, accounting for 5% and around 2%, respectively. Throughout both durations, EC functions as a net shock receiver, while consumption of renewable energy has been acting as a shock transmitter since the final quarter of 2016. Examining dynamic net pairwise directional connection at a certain quantile demonstrates that notable 2016 occurrences, such as the Revised Power Development Plan 7, affect the volatility of both green energy consumption (GEC) and economic complexity (EC).

Keywords: QVAR; Economic complexity; Green energy volatility; Vietnam (search for similar items in EconPapers)
JEL-codes: C22 C51 D53 H1 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s10668-024-04562-0

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