Renewable energy consumption and economic growth: Evidence from a panel of OECD countries
Energy Policy
Short Title:
Energy PolicyRenewable energy consumption and economic growth
Format:
Journal Article
Publication Date:
2010/01/01/
Pages:
656 - 660
Sources ID:
87756
Visibility:
Public (group default)
Abstract:
(Show)
This study examines the relationship between renewable energy consumption and economic growth for a panel of twenty OECD countries over the period 1985–2005 within a multivariate framework. Given the relatively short span of the time series data, a panel cointegration and error correction model is employed to infer the causal relationship. The heterogeneous panel cointegration test reveals a long-run equilibrium relationship between real GDP, renewable energy consumption, real gross fixed capital formation, and the labor force with the respective coefficients positive and statistically significant. The Granger-causality results indicate bidirectional causality between renewable energy consumption and economic growth in both the short- and long-run.