The Impact of Renewable Energy Investment on Economic Growth
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.
1. Hadda The projectof the implementation of solar energy in the greater South of Algeria, Journal of Research No. 11, pp. 149-156
2. (Zerzar layachi and Medahi Mouhamed (2016) Solar Energy and Sustainable Development Volume 5 No (1 )2016 Scientific journal published by the Center for Research and Studies on Solar Energy
1. Ellabban, Omar; Abu-Rub, Haitham; Blaabjerg, Frede (2014). "Renewable energy resources: Current status, future prospect and their enabling technology. Renewable and sustainable energy Reviews 39.748-764(749). doi:10.1016/j.rser.2014.07.113
2. Renewables 2010 Global Status Report" REN21(Renewable Energy Policy Network for the 21st Century). September 2010. Retrieved 27 October 2019.
3. Renewable Energy Types Nada Kh. M. A. Alrikabi Journal of Clean Energy Technologies, Vol. 2, No. 1, January 2014.
4. Statistics on the Growth of the Global Gross Domestic Product (GDP) from 2003 to 2013, IMF, October 2012.
5. Bjork, Gordon J. (1999). The Way It Worked and Why It Won't: Structural Change and the Slowdown of U.S. Economic Growth. Westport, CT; London: Praeger. pp. 2, 67. ISBN 978-0-275-96532-7.
6. Agnė Šimelytė1, Gitana DudzevičiūtėConsumption of Renewable Energy and Economic Growth CONTEMPORARY ISSUES IN BUSINESS, MANAGEMENT AND EDUCATION’2017 eISSN 2029-7963/eISBN 978-609-476-012-9 https://doi.org/10.3846/cbme.2017.048
7. Wen-Cheng Lu (2017) Renewable energy, carbon emissions, and economic growth in 24 Asian countries: evidence from panel cointegration analysis Environmental Science and Pollution Research (2017) 24:26006–26015 DOI 10.1007/s11356-017-0259-9
8. (KamilKaygusuzaAbdullahKaygusuzb2002). Renewable energy and sustainable development in Turkey Volume 25, Issue 3 Pages 341-497 (March 2002) science direct book.
9. (Acemoglu, 2012). Journal of Economic TheoryVolume 147, Issue 2, March 2012, Pages 545-550 Introduction to economic growth
10. Armeanu, Daniel tefan; Vintil, Georgeta; tefan, Cristian Gherghina . Energies; Basel Vol. 10, Iss. 3, (2017): 381. Does Renewable Energy Drive Sustainable Economic Growth? Multivariate Panel Data Evidence for EU-28 Countries
11. Georgeta SOAVA, Anca MEHEDINTU, Mihaela STERPU, Mircea RADUTEANU,(2018) IMPACT OF RENEWABLE ENERGY CONSUMPTION ON ECONOMIC GROWTH: EVIDENCE FROM EUROPEAN UNION COUNTRIES (Technological and Economic Development of Economy ISSN 2029-4913 / eISSN 2029-49212018 Volume 24 Issue 3: 914–932 https://doi.org/10.3846/tede.2018.1426)
12. Teresa Grijo´ • Isabel(2016) Soares Solar photovoltaic investments and economic growth in EU: Are we able to evaluate the nexus? Environ Dev Sustain (2016) 18:1415–1432 DOI 10.1007/s10668-016-9806-7.
13. Imran Hanif (2018) Impact of economic growth, nonrenewable and renewable energy consumption, and urbanization on carbon emissions
in Sub-Saharan AfricaEnvironmental Science and Pollution Research (2018) 25:15057–15067 https://doi.org/10.1007/s11356-018-1753-4.
14. Marinaş M-C, Dinu M, Socol A-G, Socol C (2018) Renewable energy consumption and economic growth. Causality relationship in Central and Eastern European countries. PLoS ONE 13 (10): e0202951. https://doi.org/10.1371/journal.pone.0202951.
Fang, Y.P. Economic welfare impacts from renewable energy consumption: The China experience.Renew. Sustain. Energy Rev. 2011, 15, 5120–5128.
15. Bölük, G.; Mert, M. Fossil & renewable energy consumption, GHGS (greenhouse gases) and economic growth: Evidence from a panel of EU (European Union) countries. Energy, Elsevier, vol. 74(C), pages 439 446. Akdeniz University, https://doi.org/10.1016/j.energy.2014.07.008
16. Javed Ahmad BhatRenewableandnon- renewableenergyconsumption—impact on economic growth and CO2 emissions in five emerging marketeconomies. Published online: 22 October 2018Springer-Verlag GmbH Germany, part of Springer Nature 2018 EnvironmentalScienceandPollutionResearch(2018).
17. Arize, Malindretos and Ghosh (2015) in International Review of Economics and Finance. Also, see Arize, Osang and Slottje (2000) in Journal of Business & Economic Statistics.
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.