The Impact of Renewable Energy Investment on Economic Growth

Abstract

The study aimed to define and assess the impact of renewable energy on economic growth. It used panel data for 18 countries during the period 2008-2015. The FMOLS econometric technicality was used to estimate the relevant relations between the independent variables, namely; renewable energy, capital, labor and trade openness and the dependent variable, real GDP per capita. The study found that renewable energy affects economic growth positively, however, the elasticity was highly inelastic. Also, the study found positive and significant relationships between economic growth and the other three independent variables with inelastic elasticities.



The study concluded that countries should be encouraged to invest in renewable energy and gradually decrease their dependence on conventional energy. Also, it highly recommended to remove all obstacles facing the development of renewable energy.

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Author Biographies

Harith Hadi Mohammed AlDarraji, Ph.D. candidate, School of Business -Business Economics Department, University of Jordan, Jordan

PHD Candidate at University of Jordan, Faculty of Business
Economics Department, Amman, Jordan.2015-2020

University: Master degree from Arab Academy for banking and finance sciences.
MIS between 2007- 2010.

High Diploma in translation French to Arabic and Arabic to French.1996-1997
University of Baghdad

Bachelor Degree in French Languages 1989-1992 University of Baghdad

Amir Bakir, Dr., Associate Professor, School of Business -Business Economics Department, University of Jordan, Amman, Jordan

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Published
2020-04-01
How to Cite
ALDARRAJI, Harith Hadi Mohammed; BAKIR, Amir. The Impact of Renewable Energy Investment on Economic Growth. Journal of Social Sciences (COES&RJ-JSS), [S.l.], v. 9, n. 2, p. 234-248, apr. 2020. ISSN 2305-9249. Available at: <http://centreofexcellence.net/index.php/JSS/article/view/jss.2020.9.2.234.248>. Date accessed: 05 apr. 2020. doi: https://doi.org/10.25255/jss.2020.9.2.234.248.
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