Renewable energy consumption–economic growth nexus in Turkey
TL;DR: In this article, the authors examined the renewable energy consumption and economic growth causality nexus in Turkey, and the results of this country-specific study support conservation hypothesis, and they showed that there is a unidirectional causality running from economic growth to renewable consumption.
Abstract: This paper examines the renewable energy consumption–economic growth causality nexus in Turkey. Studies in the literature can be grouped as country-specific and multi-country studies. The results of these studies are inconsistent, and there is no agreement on the existence or the direction of causality between renewable energy consumption and economic growth. The results of this country-specific study support conservation hypothesis. The results of empirical tests from ARDL approach show that renewable energy consumption has a negative impact on economic growth, and the ones of Toda–Yamamoto causality tests show that there is a unidirectional causality running from economic growth to renewable energy consumption.
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TL;DR: In this paper, a revisited Environmental Kuznets Curve (EKC) hypothesis with potential impact of renewable energy consumption on environmental quality was investigated. But, the validity of the EKC hypothesis does not depend on the income level of individual countries of the panel in which it holds.
Abstract: This paper considers a revisited Environmental Kuznets Curve (EKC) hypothesis with potential impact of renewable energy consumption on environmental quality. To this end, paper aims at investigating the validity of the EKC hypothesis employing the dependent variable of CO2 emissions and regressors of GDP, quadratic GDP and renewable energy consumption. This paper, hence, analyzes this revisited EKC hypothesis to observe if (i) there exists an inverted-U shaped relationship between environmental quality (in terms of CO2 emissions), per capita income and per capita income squared and (ii) there exists a negative causality from renewables to CO2 emissions within EKC model.
Paper employs a panel data set of 17 OECD countries over the period 1977–2010 and launches panel FMOLS and panel DOLS estimations. The findings support the EKC hypothesis for the panel and indicate that GDP per capita and GDP per capita squared have the impacts on CO2 emissions positively and negatively, respectively, and that renewable energy consumption yields negative impact on CO2 emissions. Another remark of this paper is that the validity of EKC does not depend on income level of individual countries of panel in which EKC hypothesis holds.
Eventually, paper argues that if countries carry out (i) policies, i.e., for fair and easy access to the electricity from renewable sources and (ii) policies to increase renewables supply through i.e. improved renewable energy technologies, they will be able to contribute to combating global warming problem as they increase their GDP’s.
727 citations
TL;DR: In this article, the causal relationship between economic growth and renewable energy consumption in BRICS countries over the period 1971-2010 within a multivariate framework was investigated, based on the ARDL estimates, there exist long-run equilibrium relationships among the competing variables.
Abstract: The current study investigates the causal relationship between economic growth and renewable energy consumption in the BRICS countries over the period 1971–2010 within a multivariate framework. The ARDL bounds testing approach to cointegration and vector error correction model (VECM) are used to examine the long-run and causal relationships between economic growth, renewable energy consumption, trade openness and carbon dioxide emissions. Empirical evidence shows that, based on the ARDL estimates, there exist long-run equilibrium relationships among the competing variables. Regarding the VECM results, bi-directional Granger causality exists between economic growth and renewable energy consumption, suggesting the feedback hypothesis, which can explain the role of renewable energy in stimulating economic growth in BRICS countries.
494 citations
Cites background from "Renewable energy consumption–econom..."
...Considering first the country-specific studies, Ocal and Aslan (2013) examine the causal relationship between renewable energy use and economic growth in Turkey over the period 1990-2010....
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TL;DR: In this article, the authors investigated the causes of carbon emissions by taking into account the role of financial development and economic growth in GCC countries, and found a long-run unidirectional causality running from carbon emissions to energy use in the case of Saudi Arabia, UAE, and Qatar.
Abstract: This study investigates the dynamic causal relationships among carbon emissions, financial development, economic growth, and energy consumption for Gulf Cooperation Council (GCC) countries from 1980 through 2011. Annual time series data and an autoregressive distributed lag (ARDL) model are used. The main contribution of this paper is that it has investigated the causes of carbon emissions by taking into account the role of financial development and economic growth in GCC countries. The results suggest long-run and causal relationships among carbon emissions, financial development, gross domestic product (GDP), and energy use in all GCC countries except United Arab Emirates (UAE). Moreover, there is long-run unidirectional causality running from carbon emissions to energy use in the case of Saudi Arabia, UAE, and Qatar. Furthermore, a one-way causal relationship from financial development to carbon emissions in the context of UAE, Oman, and Kuwait is found. The evidence suggests that financial systems should take into account environmental aspects in their current operations in these countries. The results of this study may be of great importance for policy and decision makers in developing energy policies for GCC countries that contribute to curbing carbon emissions while preserving economic growth.
410 citations
TL;DR: In this paper, the authors investigated the relationship between renewable energy consumption and economic growth in China for the period 1977-2011 and found that there is a bi-directional long-term causality between renewables consumption and the economic growth.
Abstract: The aim of this paper is to investigate the relationship between renewable energy consumption and economic growth in China for the period 1977–2011. Autoregressive Distributed Lag approach (ARDL) to cointegration and Johansen cointegration techniques are employed by including intermittent variables namely carbon dioxide emissions and labor. We also employed Granger causality test in order to determine the direction of the causality among the variables. The results show that there is a bi-directional long term causality between renewable energy consumption and economic growth. This finding implies that growing economy in China is propitious for the development of renewable energy sector which in turn helps to boost economic growth. We also find that labor influences renewable energy consumption in the short term. However, there is no evidence of long or short run causality between carbon emissions and renewable energy consumption. This implies that actual level of renewable energy in China is still insignificant and not considerably exploited in order to contribute to the mitigation of carbon dioxide emissions.
375 citations
TL;DR: In this paper, the authors investigated the long-term output elasticities between renewable energy consumption and non-renewable energy consumption in Asia-pacific economic cooperation (APEC) countries.
352 citations
References
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TL;DR: In this paper, the authors developed a new approach to the problem of testing the existence of a level relationship between a dependent variable and a set of regressors, when it is not known with certainty whether the underlying regressors are trend- or first-difference stationary.
Abstract: This paper develops a new approach to the problem of testing the existence of a level relationship between a dependent variable and a set of regressors, when it is not known with certainty whether the underlying regressors are trend- or first-difference stationary. The proposed tests are based on standard F- and t-statistics used to test the significance of the lagged levels of the variables in a univariate equilibrium correction mechanism. The asymptotic distributions of these statistics are non-standard under the null hypothesis that there exists no level relationship, irrespective of whether the regressors are I(0) or I(1). Two sets of asymptotic critical values are provided: one when all regressors are purely I(1) and the other if they are all purely I(0). These two sets of critical values provide a band covering all possible classifications of the regressors into purely I(0), purely I(1) or mutually cointegrated. Accordingly, various bounds testing procedures are proposed. It is shown that the proposed tests are consistent, and their asymptotic distribution under the null and suitably defined local alternatives are derived. The empirical relevance of the bounds procedures is demonstrated by a re-examination of the earnings equation included in the UK Treasury macroeconometric model. Copyright © 2001 John Wiley & Sons, Ltd.
13,898 citations
TL;DR: In this paper, the authors show how to estimate VAR's formulated in levels and test general restrictions on the parameter matrices even if the processes may be integrated or cointegrated of an arbitrary order.
4,959 citations
TL;DR: This article examined the use of autoregressive distributed lag (ARDL) models for the analysis of long-run relations when the underlying variables are I(1) and I(0) regressors.
Abstract: This paper examines the use of autoregressive distributed lag (ARDL) models for the analysis of long-run relations when the underlying variables are I(1). It shows that after appropriate augmentation of the order of the ARDL model, the OLS estimators of the short-run parameters are p T -consistent with the asymptotically singular covariance matrix, and the ARDL-based estimators of the long-run coe¢cients are super-consistent, and valid inferences on the long-run parameters can be made using standard normal asymptotic theory. The paper also examines the relationship between the ARDL procedure and the fully modi
ed OLS approach of Phillips and Hansen to estimation of cointegrating relations, and compares the small sample performance of these two approaches via Monte Carlo experiments. These results provide strong evidence in favour of a rehabilitation of the traditional ARDL approach to time series econometric modelling. The ARDL approach has the additional advantage of yielding consistent estimates of the long-run coe¢cients that are asymptotically normal irrespective of whether the underlying regressors are I(1) or I(0). JEL Classi
cations: C12, C13, C15, C22. Key Words: Autoregressive distributed lag model, Cointegration, I(1) and I(0) regressors, Model selection, Monte Carlo simulation. ¤This is a revised version of a paper presented at the Symposium at the Centennial of Ragnar Frisch, The Norwegian Academy of Science and Letters, Oslo, March 3-5, 1995. We are grateful to Peter Boswijk, Clive Granger, Alberto Holly, Kyung So Im, Brendan McCabe, Steve Satchell, Richard Smith, Ron Smith and an anonymous referee for helpful comments. Partial
nancial support from the ESRC (Grant No. R000233608) and the Isaac Newton Trust of Trinity College, Cambridge is gratefully acknowledged.
4,711 citations
TL;DR: In this paper, the stability over time of regression relationships is investigated using recursive residuals, defined to be uncorrelated with zero means and constant variance, and tests based on the cusum and cusume of squares of recursive residual coefficients are developed.
Abstract: Methods for studying the stability over time of regression relationships are considered. Recursive residuals, defined to be uncorrelated with zero means and constant variance, are introduced and tests based on the cusum and cusum of squares of recursive residuals are developed. Further techniques based on moving regressions, in which the regression model is fitted from a segment of data which is moved along the series, and on regression models whose coefficients are polynomials in time are studied. The Quandt log-likelihood ratio statistic is considered. Emphasis is placed on the use of graphical methods. The techniques proposed have been embodied in a comprehensive computer program, TIMVAR. Use of the techniques is illustrated by applying them to three sets of data.
4,125 citations
TL;DR: A survey of the recent progress in the literature of energy consumption and economic growth causality nexus can be found in this paper, which highlights that most empirical studies focus on either testing the role of energy (electricity) in stimulating economic growth or examining the direction of causality between these two variables.
1,470 citations