Renewable and Nonrenewable Energy Consumption, Government Expenditure, Institution Quality, Financial Development, Trade Openness, and Sustainable Development in Latin America and Caribbean Emerging Market and Developing Economies

Hoang Phong Le () and Ho Hoang Gia Bao
Additional contact information
Ho Hoang Gia Bao: Department of Finance and Accounting Management, Faculty of Management, Ho Chi Minh City University of Law, 02 Nguyen Tat Thanh Street, District 4, Ho Chi Minh City, Vietnam.

International Journal of Energy Economics and Policy, 2020, vol. 10, issue 1, 242-248

Abstract: This study investigates the role of non-renewable and renewable energy consumption in the sustainable development in 16 Latin America and Caribbean Emerging Market and Developing Economies (EMDEs) incorporating capital, government expenditure, institution quality, financial development, and trade openness by a multivariate framework using annual data from 1990 to 2014. We apply second-generation techniques for heterogeneous panel data as the presence of cross-sectional dependence and slope heterogeneity is detected. Accordingly, CADF and CIPS unit root tests show that all variables are integrated at order 1. Westerlund cointegration test acknowledges the long-run relationship among the variables. The long-run estimation is conducted by the Augmented Mean Group (AMG), Mean Group (MG) and Common Correlated Effects Mean Group (CCEMG) estimators. The findings indicate that, in the long run, renewable and non-renewable energy use, along with other factors including government expenditure, gross fixed capital formation, trade openness and financial development, positively affects the economic growth in the selected countries. The empirical results imply that the EMDEs in Latin America and the Caribbean should appropriately implement fiscal policies for macroeconomic stabilization in combination with finance and international trade policies as well as effective energy strategies to attain their sustainable development objectives.

Keywords: Sustainable Development; Renewable and non-renewable energy use; Heterogeneous Panel Data; Economic growth; Emerging Market and Developing Economies; Latin America and the Caribbean. (search for similar items in EconPapers)
JEL-codes: C01 E02 H72 O11 Q01 Q43 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21)

Downloads: (external link)
https://www.econjournals.com/index.php/ijeep/article/download/8506/4779 (application/pdf)
https://www.econjournals.com/index.php/ijeep/article/view/8506/4779 (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:eco:journ2:2020-01-35

Access Statistics for this article

International Journal of Energy Economics and Policy is currently edited by Ilhan Ozturk

More articles in International Journal of Energy Economics and Policy from Econjournals
Bibliographic data for series maintained by Ilhan Ozturk ().