Renewable energy consumption and economic growth: Evidence from a panel of OECD countries

Nicholas Apergis () and James Payne

Energy Policy, 2010, vol. 38, issue 1, 656-660

Abstract: This study examines the relationship between renewable energy consumption and economic growth for a panel of twenty OECD countries over the period 1985-2005 within a multivariate framework. Given the relatively short span of the time series data, a panel cointegration and error correction model is employed to infer the causal relationship. The heterogeneous panel cointegration test reveals a long-run equilibrium relationship between real GDP, renewable energy consumption, real gross fixed capital formation, and the labor force with the respective coefficients positive and statistically significant. The Granger-causality results indicate bidirectional causality between renewable energy consumption and economic growth in both the short- and long-run.

Keywords: Renewable; energy; consumption; Growth; Panel; unit; root; and; cointegration; tests; Granger-causality (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (637)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:38:y:2010:i:1:p:656-660

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