Renewable and non-renewable energy consumption and economic growth relationship revisited: Evidence from G7 countries

Can Tugcu, Ilhan Ozturk and Alper Aslan

Energy Economics, 2012, vol. 34, issue 6, 1942-1950

Abstract: The aim of this study is to investigate the long-run and causal relationships between renewable and non-renewable energy consumption and economic growth by using classical and augmented production functions, and making a comparison between renewable and non-renewable energy sources in order to determine which type of energy consumption is more important for economic growth in G7 countries for 1980–2009 period. Autoregressive Distributed Lag approach to cointegration was employed for this purpose. Also, causality among energy consumption and economic growth was investigated by employing a recently developed causality test by Hatemi-J (2012). The long-run estimates showed that either renewable or non-renewable energy consumption matters for economic growth and augmented production function is more effective on explaining the considered relationship. On the other hand, although bidirectional causality is found for all countries in case of classical production function, mixed results are found for each country when the production function is augmented.

Keywords: Renewable and non-renewable energy consumption; Growth; G7 (search for similar items in EconPapers)
JEL-codes: C3 O5 Q2 Q3 Q4 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (295)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0140988312001910
Full text for ScienceDirect subscribers only

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:eee:eneeco:v:34:y:2012:i:6:p:1942-1950

DOI: 10.1016/j.eneco.2012.08.021

Access Statistics for this article

Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant

More articles in Energy Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().