Regional spillover effects of renewable energy generation in Italy

Natalia Magnani and Andrea Vaona

Energy Policy, 2013, vol. 56, issue C, 663-671

Abstract: In a multivariate setting, we document that renewable energy generation has a positive impact on economic growth at the regional level in Italy. We do so by adopting panel data unit-root and cointegration tests as well as Granger non-causality tests relying on the system GMM estimator. Our results are interpreted in three ways. Renewable energy generation alleviates balance-of-payments constraints and reduces the exposure of a regional economy to the volatility of the price of fossil fuels and to negative environmental and health externalities deriving from non-renewable energy generation. Therefore, our evidence supports policies promoting renewable energy generation. In an appendix we show that our results are robust to the adoption of alternative econometric methods and definitions for our energy variable. They are also stable over time.

Keywords: Renewable energy generation; Economic growth; Panel data methods (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (35)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:56:y:2013:i:c:p:663-671

DOI: 10.1016/j.enpol.2013.01.032

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