ANALYZING OF THE VALIDITY OF ENERGY-GROWTH HYPOTHESIS IN N-11 COUNTRIES
ANALYZING OF THE VALIDITY OF ENERGY-GROWTH HYPOTHESIS IN N-11 COUNTRIES
Author(s): Ebru Çağlayan Akay, Zamira OskonbaevaSubject(s): Economy, Energy and Environmental Studies
Published by: Rating Academy
Keywords: Renewable Energy; Economic Growth; CO2 Emissions; Panel VAR; Next-11 Countries;
Summary/Abstract: This study aims to determine which energy-growth hypothesis is valid in Next-11 countries. We adopt a panel estimation techniques for the period of 1984-2010 to examine the possibility of growth, conservative, feedback, or neutrality hypotheses for Next-11 countries. Firstly, second generation unit root test are used to investigate stationarity properties of the variables because of the cross-sectional dependence.Then a panel cointegration and panel causality approach are proposed to examine the causal relationship between the variables. Finally, panel vector autoregression model, impulse-response and variance decomposition analysis are applied using generalized moment methods.The findings obtained from panel Granger causality test suggests that there is evidence of uni-directional causality between renewable energy consumption and economic growth in the short-term, which is consistent with the growth hypothesis. It is also found that the responses of growth to a shock of renewable energy consumption are positive. Since there is evidence indicating that renewable energy consumption may trigger economic growth.
Journal: Journal of Life Economics
- Issue Year: 3/2016
- Issue No: 3
- Page Range: 101-118
- Page Count: 18
- Language: English