ANALYZING OF THE VALIDITY OF ENERGY-GROWTH HYPOTHESIS IN N-11 COUNTRIES

Ebru ÇAĞLAYAN Akay () and Zamira Oskonbaeva ()
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Ebru ÇAĞLAYAN Akay: Marmara University/TURKEY
Zamira Oskonbaeva: Kyrgyzstan-Turkey Manas University/Kyrgyzstan

JOURNAL OF LIFE ECONOMICS, 2016, vol. 3, issue 3, 101-118

Abstract: This study aims to determine which energy-growth hypothesis is valid in Next-11 countries. We adopt a panel estimation techniques for the period of 1984-2010 to examine the possibility of growth, conservative, feedback, or neutrality hypotheses for Next-11 countries. Firstly, second generation unit root test are used to investigate stationarity properties of the variables because of the cross-sectional dependence.Then a panel cointegration and panel causality approach are proposed to examine the causal relationship between the variables. Finally, panel vector autoregression model, impulse-response and variance decomposition analysis are applied using generalized moment methods. The findings obtained from panel Granger causality test suggests that there is evidence of uni-directional causality between renewable energy consumption and economic growth in the short-term, which is consistent with the growth hypothesis. It is also found that the responses of growth to a shock of renewable energy consumption are positive. Since there is evidence indicating that renewable energy consumption may trigger economic growth.

Keywords: Renewable; Energy; Economic; Growth; CO2; Emissions; Panel; VAR; Next-11; Countries (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:jle:journl:v:3:y:2016:i:3:p:101-118

DOI: 10.15637/jlecon.141

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