1. Renewable and non-renewable energy consumption-economic growth nexus: New evidence from South Asia.
- Author
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Rahman, Mohammad Mafizur and Velayutham, Eswaran
- Subjects
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VECTOR error-correction models , *SAVINGS , *ENERGY consumption , *ECONOMIC development , *SOUTH Asians , *LEAST squares , *NONRENEWABLE natural resources - 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 1990–2014. To see the long-run 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. • Renewable & non-renewable energy use and economic growth nexus is explored. • Panel FMOLS and DOLS estimation methods are used to examine the long-run effects. • Panel causality tests are used to see the causal link between the variables. • Positive impacts of both energy consumption on the economic growth are found. • A unidirectional causality from economic growth to renewable energy use is found. [ABSTRACT FROM AUTHOR]
- Published
- 2020
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