Output, renewable and non-renewable energy consumption and international trade: Evidence from a panel of 69 countries

Mehdi Ben Jebli () and Slim Ben Youssef

MPRA Paper from University Library of Munich, Germany

Abstract: This paper uses panel cointegration techniques to examine the causal relationship between output, renewable and non-renewable energy consumption, and international trade for a sample of 69 countries during the period 1980-2007. In the short-run, Granger causality tests show that there is a bidirectional causality between output and trade (exports or imports), a bidirectional causality between non-renewable energy and trade, and a one way causality running from renewable energy to trade. In the long-run, a bidirectional causality between renewable energy and imports and a unidirectional causality running from renewable energy to exports, are noticed. Our long-run OLS, FMOLS and DOLS estimates suggest that renewable, non-renewable energy consumption and trade have a positive impact on economic growth. Our energy policy recommendations are the following: i) any non-renewable energy policy should take into account the importance of international trade, ii) more renewable energy use should be encouraged by national and international competent authorities in order to increase international economic exchanges and promote economic growth without harming the environment, and iii) increasing imports, particularly by developing countries, is a good vehicle for renewable energy technology transfer and contributes to increase renewable energy consumption in the long-run, thus contributing to reducing greenhouse gas emissions.

Keywords: Renewable and non-renewable electricity consumption; Trade; Panel cointegration. (search for similar items in EconPapers)
JEL-codes: C33 E1 F1 Q43 (search for similar items in EconPapers)
Date: 2013-05-30, Revised 2014-04-07
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Journal Article: Output, renewable and non-renewable energy consumption and international trade: Evidence from a panel of 69 countries (2015)
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