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Renewable, non-renewable energy consumption and economic growth nexus in G7: fresh evidence from CS-ARDL

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Abstract

This study investigates the effects of renewable energy (REN) consumption and non-renewable energy (NREN) consumption on economic growth in G7 countries with annual data covering the period 1980–2016 using a new panel data estimator that provides robust results under cross-sectional dependence, slope heterogeneity, and can be used whether series are integrated in different orders. In addition, the causality between the variables is analyzed with the panel bootstrap Granger causality method takes cross-sectional dependency and slope heterogeneity into account. According to Cross-sectionally Augmented Autoregressive Distributed Lag (CS-ARDL) results, the coefficients of REN and NREN consumption are positive and statistically significant in both the short- and long-run. Furthermore, NREN consumption has a greater impact on enhancing economic growth than REN consumption. The panel bootstrap causality analysis reveals that the growth hypothesis (GH) is valid in REN in Canada, Italy, and the USA; neutrality is valid in REN in France, Japan, and the UK; the feedback hypothesis (FE) is valid for REN only in Germany. For NREN, the GH is valid for Canada, France, and Germany; the conservation hypothesis (CH) is valid in Italy and the UK. Finally, the FH is valid in Japan and the USA.

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Data and materials availability

The datasets analyzed during the current study are available from the corresponding author on reasonable request.

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We do not receive any financial assistance from any agency. All the costs associated with preparing the article bear by authors solely.

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Authors and Affiliations

  1. Department of Economics, Kahramanmaras Sutcu Imam University, Kahramanmaras, Turkey

    Ilyas Okumus

  2. Department of Economics, Hatay Mustafa Kemal University, Hatay, Turkey

    Arif Eser Guzel

  3. Department of Economics, Gaziantep University, Gaziantep, Turkey

    Mehmet Akif Destek

Authors
  1. Ilyas Okumus
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  2. Arif Eser Guzel
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  3. Mehmet Akif Destek
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Contributions

MAD initiated and designed the study. İO reviewed the literature and collected the dataset. AEG carried out the empirical analysis. AEG and İO have jointly interpreted the empirical findings, revised and completed the manuscript. All authors read and approved the final manuscript.

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Correspondence to Mehmet Akif Destek.

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Okumus, I., Guzel, A.E. & Destek, M.A. Renewable, non-renewable energy consumption and economic growth nexus in G7: fresh evidence from CS-ARDL. Environ Sci Pollut Res 28, 56595–56605 (2021). https://doi.org/10.1007/s11356-021-14618-7

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