The Importance of Renewable Energy in Economic Growth: Evidence from a Panel of Emerging Countries

Manel Kamoun () and Mohamed Ben Amar

Romanian Economic Journal, 2016, vol. 18, issue 59, 125-142

Abstract: The purpose of this paper is to estimate the impact of renewable energy consumption from combustible renewable and waste sources on economic growth in emerging countries. We analyze the stylized facts of renewable energy and emerging countries related to four regions (Africa, Europe, Latin America, and Asia). We use recent data in the cob-Douglas function and applying a non-stationary panel model for 15 emerging countries covering the period (1990-2011). The Granger causality test showed that there is no causal relationship between renewable energy consumption of combustible renewable and waste sources and economic growth that confirm the neutrality hypothesis. The results supported a positive and significant effect of renewable energy consumption of this source on economic growth in emerging countries. The absence of a causal relationship can be explained by the inefficient use of combustible renewable and waste in the majority of those emerging countries. The consumption of low variability renewable energy such as renewable and waste stimulates economic growth in emerging countries.

Keywords: Renewable Energy; economic growth; Emerging Countries; Non-stationary Panel Model. (search for similar items in EconPapers)
JEL-codes: C23 O44 Q20 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

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Persistent link: https://EconPapers.repec.org/RePEc:rej:journl:v:18:y:2016:i:59:p:125-142

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