Energy Consumption, Energy RD and Economic Growth in OECD Economies

摘要

The economic growth of OECD countries has been fostered by fossil fuel consumption and R&D. How- ever, renewable energy consumption and R&D could promote economic growth and various climatic policies are meant to promote the transitions towards renewable energy-based economies. Nonethe- less, the transitions towards renewable energy-based economies were restrained by the high levels of fossil fuel consumption and R&D. Using causality tests and Solow growth framework on OECD data from period 1977 to 2007, this study ?nds that renewable energy consumption appears to stimulate output per worker in the Netherlands amongst the countries examined; and renewable energy R&D appears to promote economic growth for both countries with and without oil reserves. In contrast, for countries without oil endowment, fossil fuel R&D appears to restrict economic growth. To e¤ectively facilitate the shift towards renewable energy-based economies with high level of renewable energy usage and low level of fossil fuels, environmental policies such as o¤ering tax incentives for renewable energy innovations and imposing environmental taxes are suggested to be employed.