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On the causal dynamics between renewable and non-renewable energy consumption and economic growth in developed and developing countries

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Abstract

This study extends recent work on the relationship between renewable and non-renewable energy consumption and economic growth to the case of developed and developing countries over the period 1990–2007. Heterogeneous panel cointegration procedures show a long-run equilibrium relationship between real GDP, renewable energy consumption, non-renewable energy consumption, real gross fixed capital formation, and the labor force with the respective coefficient estimates positive and statistically significant for developed and developing country panels. The results from the panel error correction models reveal bidirectional causality between renewable and non-renewable energy consumption and economic growth in the short- and long-run for each country panel.

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Authors and Affiliations

  1. Department of Banking and Financial Management, University of Piraeus, Karaoli and Dimitriou 80, Piraeus, Attiki, 18534, Greece

    Nicholas Apergis

  2. University of South Florida Polytechnic, 3433 Winter Lake Road, Lakeland, FL, 33803-9714, USA

    James E. Payne

Authors
  1. Nicholas Apergis
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  2. James E. Payne
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Correspondence to James E. Payne.

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Apergis, N., Payne, J.E. On the causal dynamics between renewable and non-renewable energy consumption and economic growth in developed and developing countries. Energy Syst 2, 299–312 (2011). https://doi.org/10.1007/s12667-011-0037-6

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  • DOI: https://doi.org/10.1007/s12667-011-0037-6

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