Renewable energy and growth : evidence from heterogeneous panel of G7 countries using Granger causality
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Date
Authors
Chang, Tsangyao
Gupta, Rangan
Inglesi-Lotz, Roula
Simo-Kengne, Beatrice Desiree
Smithers, Devon
Trembling, Amy
Journal Title
Journal ISSN
Volume Title
Publisher
Elsevier
Abstract
In this paper we examine the causal relationship between renewable energy consumption and
economic growth across the G7 countries, using annual data for the period of 1990 to 2011.
By employing the causality methodology proposed by Emirmahmutoglu and Kose (2011), we
investigate if there is a causal relationship between the variables. The advantage of this
methodology is that it takes into account possible slope heterogeneity and cross-sectional
dependency in a multivariate panel. The empirical results support the existence of a bidirectional
causal relationship between economic growth and renewable energy for the
overall panel. However, looking at the individual results for each country, the neutrality
hypothesis is confirmed for Canada, Italy and the US; while for France and UK there is a
unidirectional causality from GDP to renewable energy, and the opposite for Germany and
Japan.
Description
Keywords
Renewable energy, Economic growth, G7 countries, Panel causality
Sustainable Development Goals
Citation
Chang, T, Gupta, R, Inglesi-Lotz, R, Simo-Kengne, BD, Smithers, D & Trembling, A 2015, 'Renewable energy and growth : evidence from heterogeneous panel of G7 countries using Granger causality', Renewable and Sustainable Energy Reviews, vol. 52, pp. 1405-1412.