A comparative study of sectoral renewable energy consumption and GDP in the U.S.: Evidence from a threshold approach

Abid, Mehdi; Moez, Dabboussi

doi:10.1016/j.renene.2022.03.057

Cited by 17 publications

(4 citation statements)

References 43 publications

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“…Indeed, our results show that policymakers should increase the use of renewable energy above a certain threshold to achieve the desired effect on economic growth. This result confirms the finding of Dabboussi and Abid (2022).…”

Section: Ptr Results and Discussionsupporting

confidence: 92%

The nonlinear nexus between renewable energy consumption and economic growth in OECD countries: evidence from PTR and PSTR estimates

Ferhi

Helali

2023

JES

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PurposeToday, the increasing use of fossil fuels, energy security, concerns and the great importance of achieving sustainable economic growth underscore the urgent need to transition to a green energy system as soon as possible. To shed light on the relationship between the economy and renewable energy, this study assesses the nonlinear relationship between renewable energy consumption and economic growth for 24 OECD countries between 1990 and 2015.Design/methodology/approachThe authors apply two nonlinear models: panel threshold regression (PTR) and panel smooth transition regression (PSTR).FindingsThe results show that the positive effect of renewable energy consumption on economic growth is conditional. On the one hand, the results of the nonlinear PTR model yielded a threshold value for renewable energy consumption of about 251.17. Below this threshold, the authors find a negative impact of renewable energy consumption on economic growth. However, above this threshold, renewable energy consumption becomes a favorable source of economic growth. Using the nonlinear PSTR model based on the gamma transition parameter of 2.014, the transition from low renewable energy consumption regime to higher is abrupt.Originality/valueReferring to previous studies analyzing linear causality between renewable energy and economic growth, most of the results show various mixed and non-stable effects over the study period. The contributions of this study consist in conduct a series of empirical tests of the nonlinear effects of renewable energy use on economic growth using two nonlinear approaches such as the PTR and PSTR models. If the authors show that such a relationship is nonlinear, it is essential to check whether the transition from one weak regime to another strong regime is abrupt or smooth, using the PSTR approach.

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Section: Ptr Results and Discussionsupporting

confidence: 92%

The nonlinear nexus between renewable energy consumption and economic growth in OECD countries: evidence from PTR and PSTR estimates

Ferhi

Helali

2023

JES

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“…For model 1, the coefficient on the EC variable is equal to 0.651 and is statistically significant, implying that a 1% increase in energy consumption per capita would lead to a 0.651% increase in ecological footprint per capita. The positive sign of this coefficient is consistent with the work of Puntoon et al (2022), Karaaslan and Çamkaya (2022), Wang and Jia (2022), Nan et al (2022), Li and Haneklaus (2022), Abid and Sekrafi (2021), Abid et al (2022), and Dabboussi and Abid (2022). On the other hand, international trade would tend to reduce polluting emissions in Saudi Arabia.…”

Section: Test Of the Cointegration Relationshipsupporting

confidence: 79%

Impact of GDP growth on the ecological footprint: Theoretical and empirical evidence from Saudi Arabia

Alruweili

2023

Int. j. adv. appl. sci.

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This study aims to examine the hypothesis of the environmental Kuznets curve (EKC) within the context of Saudi Arabia from 1981 to 2017. The ARDL approach is employed to estimate the relationship between ecological footprint, energy consumption, trade openness, and GDP per capita. The findings confirm that GDP per capita, trade openness, and energy consumption positively impact the ecological footprint, and reveal the presence of a feedback relationship between GDP per capita and energy consumption. The results demonstrate the empirical validity of the EKC, indicating an inverted U-shaped relationship between GDP and ecological footprint. Consequently, as Saudi Arabia's level of economic growth advances, its environmental conditions tend to improve. To further reduce the ecological footprint, Saudi Arabia is urged to substantially increase its utilization of renewable energy sources and implement a more efficient energy policy.

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“…Empirical studies on renewable energy have also been conducted to prove its great sustainable effect in the USA. Dabboussi and Abid (2022) analyzed, using a threshold approach, that renewable energy consumption has a positive impact on economic growth. Emirmahmutoglu et al (2021) analyzed the relationship between renewable and non-renewable energy consumption and the US real GDP using the Toda-Yamamoto approach.…”

Section: Literature Reviewmentioning

confidence: 99%

Does Renewable Energy Transition in the USA and China Overcome Environmental Degradation?

Mohamad,

Zainuddin,

Ab-Rahim

2023

IJEEP

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The use of fossil energy highly contributes to the CO2 emissions. Compared to other countries, China and the USA were responsible for approximately half of the global CO2 emissions in 2022. The SDG7 agenda, which aims to preserve the use of renewable energy, has made people aware of the need to switch from fossil-based to renewable energy sources by 2030. Thus, this paper aims to analyze the implications of fossil and renewable energy consumption on environmental degradation in the USA and China. This study uses the linear and nonlinear autoregressive distributed lag (ARDL) model to examine the cointegration of the fossil and renewable energy toward the CO2 emissions from 1985 to 2021. The estimation results for USA using linear ARDL shows that fossil energy lead to higher CO2 emissions, meanwhile renewable energy reduces the CO2 emissions. Similar finding in the nonlinear ARDL, most of the models for China and the USA found significant impact of renewable energy consumption, where higher renewable energy transition contributes in lowering environmental degradation. This provide justification for policymakers in both countries to continue their efforts in renewable energy transition to archive the SDG7 agenda in 2030.

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A comparative study of sectoral renewable energy consumption and GDP in the U.S.: Evidence from a threshold approach

Cited by 17 publications

References 43 publications

The nonlinear nexus between renewable energy consumption and economic growth in OECD countries: evidence from PTR and PSTR estimates

The nonlinear nexus between renewable energy consumption and economic growth in OECD countries: evidence from PTR and PSTR estimates

Impact of GDP growth on the ecological footprint: Theoretical and empirical evidence from Saudi Arabia

Does Renewable Energy Transition in the USA and China Overcome Environmental Degradation?

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