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Renewable energy consumption and economic growth in Argentina: A multivariate co-integration analysis

Hlalefang Khobai

No 1805, Working Papers from Department of Economics, Nelson Mandela University

Abstract: This paper applied the ARDL bounds test approach and the VECM test technique to examine the long run relationship and direction of causality between renewable energy consumption and economic growth in Argentina. Quarterly time series data was employed in this study covering a period between 1990 and 2014. Trade openness, capital and employment were included in the study to form a multivariate framework. The results established that there is a long run relationship between the variables. The VECM test technique confirmed a unidirectional causality flowing from economic growth to renewable energy consumption. This implies that energy conservation policies may not harm the economic growth. The study, therefore, suggest that an appropriate and effective energy policy should be implemented in the long run.

Keywords: Renewable energy consumption; Economic growth; Causality; Argentina. (search for similar items in EconPapers)
JEL-codes: D04 Q01 Q42 Q47 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2018-01, Revised 2018-01
New Economics Papers: this item is included in nep-ene and nep-env
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