Renewable electricity is a pillar of the sustainability transition being pursued through climate and energy policy strategies, and the European Green Deal represents a potential investment plan for this new phase of development. Economic growth can be influenced by the expansion of renewable electricity consumption, but the nature of their relationship is ambiguous and depends on various economic and policy factors. This paper investigates the long-run relationship between renewable electricity consumption and economic growth in selected countries over the period 1971–2015 using econometric panel data techniques that specifically address cross-country heterogeneity and cross-sectional dependence. Our findings suggest that, on average, there is a significant positive long-term relationship between renewable electricity consumption and economic growth, although Granger causality is not detected. Regarding causality, we do find per capita economic growth to be a causal factor for total electricity consumption and fossil-fuel based electricity consumption.
Renewable electricity and economic growth relationship in the long run: Panel data econometric evidence from the OECD
Chakraborty, Saptorshee KantoCo-primo
;Mazzanti, Massimiliano
Co-primo
2021
Abstract
Renewable electricity is a pillar of the sustainability transition being pursued through climate and energy policy strategies, and the European Green Deal represents a potential investment plan for this new phase of development. Economic growth can be influenced by the expansion of renewable electricity consumption, but the nature of their relationship is ambiguous and depends on various economic and policy factors. This paper investigates the long-run relationship between renewable electricity consumption and economic growth in selected countries over the period 1971–2015 using econometric panel data techniques that specifically address cross-country heterogeneity and cross-sectional dependence. Our findings suggest that, on average, there is a significant positive long-term relationship between renewable electricity consumption and economic growth, although Granger causality is not detected. Regarding causality, we do find per capita economic growth to be a causal factor for total electricity consumption and fossil-fuel based electricity consumption.File | Dimensione | Formato | |
---|---|---|---|
1-s2.0-S0954349X21001004-main.pdf
solo gestori archivio
Descrizione: Full text editoriale
Tipologia:
Full text (versione editoriale)
Licenza:
NON PUBBLICO - Accesso privato/ristretto
Dimensione
1.4 MB
Formato
Adobe PDF
|
1.4 MB | Adobe PDF | Visualizza/Apri Richiedi una copia |
I documenti in SFERA sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.