Renewable Vs Non-Renewable Energy Consumption as a Driver of Government Deficit in Net Energy Importing Countries

Can Tugcu, Angeliki N Menegaki () and Ilhan Ozturk

Asian Economic and Financial Review, 2020, vol. 10, issue 10, 1100-1114

Abstract: This paper is an empirical study on the relationship between renewable and non-renewable energy sources on the central government budget deficit of 33 net energy importing energy countries. We employ a panel data framework with variables such as the budget deficit of the central government, the GDP per capita, the average official exchange rate, the real interest rate, renewable and non-renewable energy consumption for a data span from 2000 to 2012. Based on causality results from this study, there is a uni-directional effect from budget deficit towards renewable energy consumption and a bi-directional causal relationship between non-renewable energy consumption and the budget deficit. Results from our study are informative for policy making, since nowadays fiscal policy on energy consumption is worldwide disputed, for not being able to fully achieve its targets. Therefore, there is political willingness to re-design it and move it from energy subsidies and energy taxes into energy full cost pricing and other tools that aim to reach those social groups that are in more need.

Keywords: Economic growth; Renewable energy; Energy consumption; Energy importers; Fiscal effects. (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://archive.aessweb.com/index.php/5002/article/view/2003/3182 (application/pdf)
https://archive.aessweb.com/index.php/5002/article/view/2003/7252 (text/html)

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:asi:aeafrj:v:10:y:2020:i:10:p:1100-1114:id:2003

Access Statistics for this article

More articles in Asian Economic and Financial Review from Asian Economic and Social Society
Bibliographic data for series maintained by Robert Allen ().