Articlegold2014

The Renewable Energy Production-Economic Development Nexus

54 citations0/0 files storedInternational Journal of Energy Economics and Policy

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Energy, Environment, Economic Growth Renewable energy and sustainable power systems Energy and Environmental Sustainability

Abstract

ABSTRACT: As renewable energy requirements increases, its relation with development is controversial. In this study, by taking human development index for development level, the relationship between renewable electricity net generation values and development has been searched with panel analysis. Study covers two different time periods: 1980-2010 with 5 year data to analyze long term effects and 2005-2010 yearly data for short term effects. Unlike previous studies, energy generation has been taken into consideration for it is thought to be more related with economic development. It is found that in the long run economic development will be leading to renewable energy production, while in the short run there exists a bidirectional causal relationship between renewable energy production and economic development. In addition, the causal relationship between economic development and renewable energy production varies both in the long run and in the short run due to human development level of the countries.

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References

1978ON THE RELATIONSHIP BETWEEN ENERGY AND GNP 2009Renewable energy consumption and economic growth: Evidence from a panel of OECD countries 2009A literature survey on energy–growth nexus 2010CO2 emissions, energy consumption and economic growth in Turkey 2010On the causal dynamics between emissions, nuclear energy, renewable energy, and economic growth 2010Growth and renewable energy in Europe: A random effect model with evidence for neutrality hypothesis 2010Renewable energy consumption and growth in Eurasia 2012Renewable and non-renewable energy consumption and economic growth relationship revisited: Evidence from G7 countries

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