Renewable and non-renewable energy consumption-economic growth nexus: new evidence from South Asia

Rahman, Mohammad Mafizur ORCID: and Velayutham, Eswaran ORCID: (2020) Renewable and non-renewable energy consumption-economic growth nexus: new evidence from South Asia. Renewable Energy, 147 (Part 1). pp. 399-408. ISSN 0960-1481


This study explores the relationship between renewable and non-renewable energy consumption and economic growth for a panel of five South Asian countries over the period of 1990e2014. To see the longrun co-integration between the variables, the study applies Pedroni (1999, 2004) and Kao (1999) tests. The long-run equilibrium relationship is determined using panel Fully Modified Ordinary Least Squares and panel Dynamic Ordinary Least Squares estimation techniques. Dumitrescue-Hurlin (2012) panel causality test is used to see the causal links between the variables. The study finds positive impacts of renewable and non-renewable energy consumption and fixed capital formation on economic growth. Ceteris paribus, a 1% increase in renewable energy consumption, non-renewable energy consumption and capital increased economic growth by 0.66%. 0.10% and 0.58%, respectively. It is also revealed that there is a unidirectional causality running from economic growth to renewable energy consumption. As per the obtained results, the conservation hypothesis is valid for the South Asian countries.

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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Published version cannot be displayed due to copyright restrictions.
Faculty/School / Institute/Centre: Historic - Faculty of Business, Education, Law and Arts - School of Commerce (1 Jul 2013 - 17 Jan 2021)
Faculty/School / Institute/Centre: Current - Institute for Resilient Regions - Rural Economies Centre of Excellence (1 Aug 2018 -)
Date Deposited: 10 Sep 2019 04:46
Last Modified: 19 Jul 2022 03:25
Uncontrolled Keywords: renewable energy; non-renewable energy; economic growth; South Asia; panel data; fully modified ordinary least squares
Fields of Research (2008): 14 Economics > 1402 Applied Economics > 140202 Economic Development and Growth
14 Economics > 1403 Econometrics > 140304 Panel Data Analysis
14 Economics > 1402 Applied Economics > 140299 Applied Economics not elsewhere classified
Fields of Research (2020): 44 HUMAN SOCIETY > 4404 Development studies > 440499 Development studies not elsewhere classified
38 ECONOMICS > 3802 Econometrics > 380204 Panel data analysis
38 ECONOMICS > 3801 Applied economics > 380199 Applied economics not elsewhere classified
Socio-Economic Objectives (2008): B Economic Development > 85 Energy > 8505 Renewable Energy > 850599 Renewable Energy not elsewhere classified
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