Considering the effect of biomass energy consumption on economic growth:fresh evidence from BRICS region
Muhammad Shahbaz (),
Khalid Ahmed (),
Ghulam Rasool and
MPRA Paper from University Library of Munich, Germany
This paper investigates the relationship between biomass energy consumption and economic growth by incorporating capital and trade openness in production function for the case of BRICS countries. In doing so, unit root and cointegration tests have been used in order to examine unit root properties and long run relationship between the series for the period of 1991Q1-2015Q4. The results confirm the presence of long-run equilibrium relationship between the variables. Moreover, biomass energy consumption stimulates economic growth. Capital increments economic growth and trade openness spurs economic growth. The feedback effect exists between biomass energy consumption and economic growth. Trade openness Granger causes economic growth, capital and biomass energy consumption. The policy to adopt biomass as the primary source of renewable energy helps BRICS countries to achieve sustainable development goal in both short-run and long-run. However, the key innovative point of this study is to establish the sign for Granger causality test.
Keywords: Biomass energy; Growth; Capital; Trade (search for similar items in EconPapers)
JEL-codes: C0 (search for similar items in EconPapers)
Date: 2016-03-12, Revised 2016-03-14
New Economics Papers: this item is included in nep-ene, nep-env, nep-fdg and nep-gro
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14) Track citations by RSS feed
Downloads: (external link)
https://mpra.ub.uni-muenchen.de/70024/3/MPRA_paper_70024.pdf original version (application/pdf)
Journal Article: Considering the effect of biomass energy consumption on economic growth: Fresh evidence from BRICS region (2016)
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:pra:mprapa:70024
Access Statistics for this paper
More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().