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Renewable energy consumption and economic growth: Evidence from a panel of OECD countries

2009; Elsevier BV; Volume: 38; Issue: 1 Linguagem: Inglês

10.1016/j.enpol.2009.09.002

1873-6777

Nicholas Apergis, James E. Payne,

Energy and Environment Impacts

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.