A Global Perspective on the Renewable Energy Consumption-Growth Nexus

摘要

This study examines the causal relationship between renewable energy consumption and economic growth for 80 countries within a multivariate panel framework over the period 1990-2007. The results of the panel cointegration test indicates there is a long-run equilibrium relationship between real gross domestic product, renewable energy consumption, real gross fixed capital formation, and the labor force with the respective coefficient estimates positive and statistically significant. The results from the panel error correction model reveal bidirectional causality between renewable energy consumption and economic growth in both the short-run and long-run.