Renewable and non-renewable electricity consumption–economic growth nexus: Evidence from OECD countries
Renewable Energy, 2019, vol. 136, issue C, 599-606
In this study, the relationship between renewable and non-renewable electricity consumption and economic growth was examined using data from the 1980–2015 period for 26 OECD countries. The relationship between the variables was examined using two different panel causality approaches in order to make a comparison. Time domain Granger causality tests cannot examine the causality relation at different frequencies. However, frequency domain Granger causality tests examine the causality at different frequencies. While Dumitrescu-Hurlin (2012) panel causality test is time domain causality test, the causality test developed by Croux and Reusens (2013) is the frequency domain causality test. According to the Dumitrescu-Hurlin panel causality test results, bidirectional causality has been determined between non-renewable electricity consumption and economic growth. On the contrary, the Croux and Reusens test results show that there is a bidirectional temporary, and permanent causality between economic growth and renewable-non-renewable electricity consumption. According to this results, for 26 OECD countries, where the feedback hypothesis is valid, policies need to be assessed not only in terms of economic growth, but also in terms of improving electricity energy supply security and environmental quality. Finally, policy-makers should promote the renewable electricity consumption to ensure energy security, reduce energy dependence, and encourage economic growth.
Keywords: Electricity consumption; Economic growth; Frequency domain; Panel causality; OECD countries (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:renene:v:136:y:2019:i:c:p:599-606
Access Statistics for this article
Renewable Energy is currently edited by Soteris A. Kalogirou and Paul Christodoulides
More articles in Renewable Energy from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().