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Renewable energy consumption in Coastline Mediterranean Countries: impact of environmental degradation and housing policy

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Abstract

The significance of the natural geographical characteristics and ecological formation of the Coastline Mediterranean Countries (CMC) suggests a further examination of the dynamics of the renewable energy consumption (renewables) within the aforesaid region. As such, the dynamic impact of carbon emissions and the housing construction policy vis-à-vis dwellings, building and residential developments on the renewable energy consumption is investigated among Spain, France, Slovenia, Greece, Turkey, Lebanon and Israel. The dynamic autoregressive distributed lag methods of the pooled mean group, mean group and dynamic fixed-effect estimators are adopted for the empirical investigation over the periods 1999–2014 with real income and tourism employed as an additional variable. Using the PMG estimators, empirical results show that positive and statistically significant relationship exists among the variables in the long run. A 1% increase in housing construction policy, real income tourism and carbon emissions leads to (0.955), (8.622), (0.007) and (6.805) increase in renewable energy growth, while deviations in the short run significantly adjust to long-run equilibrium under an unforeseen disturbance at a moderate annual speed of about 73% annually. The inference from the short-run estimated coefficients indicates that housing construction policy is not a driver of renewables in Israel. From a policy standpoint, proposed strategic housing development policy and environmental pollution mitigation policy by policymakers should be void of causing a disservice toward the enrichment of renewable energy generation domestically in the panel countries.

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Notes

  1. The U.S. Energy Information Administration (EIA) provides an independent statistics and analysis of the energy sector in the United States of America. Information regarding the sources of energy, their outlook and projections of renewable energy is made available. https://www.eia.gov/energyexplained/?page=renewable_home.

  2. A conference organized by the United Nations Framework Convention on Climate Change (UNFCCC) between 30 November and 12 December 2015 culminates into the Paris climate agreement or Paris climate accord. The legal protocol which was finalized in 2014 was officially activated and became effective on 4 November 2016 and had 195 UNFCCC members signatory to it. https://ec.europa.eu/clima/policies/international/negotiations/paris_en.

  3. For brevity, we could not discuss in detail the remaining panel unit root test conducted.

  4. This finding is consistent with that reported in the Appendix for panel static model. The H-test rejects the null hypothesis of random effects. Thus, we confirm the existence of slope homogeneity in the model.

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Acknowledgements

The authors’ gratitude is extended to the editor and anonymous reviewers that will/have spared his/her time to guide toward a successful publication.

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Authors and Affiliations

  1. Faculty of Economics, Administrative and Social Sciences, Istanbul Gelisim University, Istanbul, Turkey

    Andrew Adewale Alola & Uju Violet Alola

  2. Aviola Consult Ltd, Lagos, Nigeria

    Andrew Adewale Alola

  3. Faculty of Business and Economics, Department of Economics, Eastern Mediterranean University, via Mersin 10, Famagusta, North Cyprus, Turkey

    Seyi Saint Akadiri

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  1. Andrew Adewale Alola
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Table 8 Panel static models
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Alola, A.A., Alola, U.V. & Akadiri, S.S. Renewable energy consumption in Coastline Mediterranean Countries: impact of environmental degradation and housing policy. Environ Sci Pollut Res 26, 25789–25801 (2019). https://doi.org/10.1007/s11356-019-05502-6

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