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

Rahman, Mohammad Mafizur and Velayutham, Eswaran (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

Abstract

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: Current - Faculty of Business, Education, Law and Arts - School of Commerce (1 July 2013 -)
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: 27 Sep 2019 05:11
Uncontrolled Keywords: renewable energy; non-renewable energy; economic growth; South Asia; panel data; fully modified ordinary least squares
Fields of Research : 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
Socio-Economic Objective: B Economic Development > 85 Energy > 8505 Renewable Energy > 850599 Renewable Energy not elsewhere classified
Identification Number or DOI: 10.1016/j.renene.2019.09.007
URI: http://eprints.usq.edu.au/id/eprint/37008

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