Economic welfare impacts from renewable energy consumption: The China experience

Fang, Yiping

doi:10.1016/j.rser.2011.07.044

Cited by 269 publications

(124 citation statements)

References 43 publications

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“…The main reason for this difference is the inclusion of more countries in this exercise and most importantly the inclusion of the R&D expenses as an additional factor of production. The findings are lower to the ones reported by Fang (2011) for the case of China. He finds that the coefficient for trc is 0.12 and 0.162 for gdp and gdppc; while for src it is 0.031 and 0.009 for gdp and gdppc respectively.…”

Section: Resultscontrasting

confidence: 95%

“…The theoretical framework followed was derived by Fang (2011) and justified by Tugcu et al (2012). The panel cointegration technique proposed by Pedroni (1999Pedroni ( , 2004 …”

Section: Brief Literature Reviewmentioning

confidence: 99%

“…The theoretical basis of this focus area lies with the fundamental economics of production as it was used by Fang (2011) in his effort to evaluate the influence of renewable energy consumption to the Chinese economy. In his empirical work followed here, in order to represent a relationship between inputs and output, a Cobb-Douglas functional form is used.…”

Section: Theoretical Modelmentioning

confidence: 99%

“…Following Fang (2011), in this exercise the R&D expenditure is used as a proxy to technological changes. Following Fang (2011), two variables will represent the possible influence of renewable energy consumption to economic growth: total consumption of renewable energy and share of renewable consumption to the energy mix. Thus, the final Cobb-Douglas function to be estimated will be as follows in its natural logarithm form (denoted by the small letters):…”

Section: Theoretical Modelmentioning

confidence: 99%

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The impact of renewable energy consumption to economic growth: A panel data application

2016

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Internationally, the importance of renewable energy in the energy mix has been increasingly appreciated. The advantages of the renewable energy usage for the world's energy security and the environment are indisputable and much discussed in the literature. However, its effects on the economic welfare of the countries are yet to be examined fully and described quantitatively. The purpose of this paper is to estimate the impact of the renewable energy consumption to economic welfare by employing panel data techniques. The results show that the influence of renewable energy consumption or its share to the total energy mix to economic growth is positive and statistically significant. From a policy point of view, promoting renewable energies bears benefits not only for the environment but also for the economic conditions of the countries.

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Section: Resultscontrasting

confidence: 95%

“…The theoretical framework followed was derived by Fang (2011) and justified by Tugcu et al (2012). The panel cointegration technique proposed by Pedroni (1999Pedroni ( , 2004 …”

Section: Brief Literature Reviewmentioning

confidence: 99%

Section: Theoretical Modelmentioning

confidence: 99%

Section: Theoretical Modelmentioning

confidence: 99%

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The impact of renewable energy consumption to economic growth: A panel data application

2016

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“…Subsequently, an empirical approach will address the causal relationship between primary production of renewable energies, energy dependence, and gross domestic product per capita. The literature on the relationship between renewable energy consumption and economic growth is quite extensive [7,8,18,19,[39][40][41][42][43][44][45][46][47][48][49][50][51][52][53][54][55][56][57][58], studies on the link between biomass energy and economic growth also exist [59][60][61][62], as well as hydroelectricity consumption and economic growth [63,64]. Yildirim et al [58] considered several renewable energy types, but for the case of U.S.…”

Section: Introductionmentioning

confidence: 99%

Does Renewable Energy Drive Sustainable Economic Growth? Multivariate Panel Data Evidence for EU-28 Countries

2017

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Abstract:Energy is crucial to economic progress, but the contemporary worldwide population increase that demands greater energy generated from conventional exhaustible resources, an energy price upsurge, and environmental concerns, imperils sustainable economic growth. Nevertheless, switching to renewable energy produced from naturally replenished resources promotes energy security, likewise addressing issues such as global warming and climate change. This paper aims at exploring the influence and causal relation between renewable energy, both overall and by type, and sustainable economic growth of European Union (EU)-28 countries for the period of 2003-2014. We notice that the mean share of renewable energy in the gross final energy consumption is 15%, while the mean share of renewable energy in transport fuel consumption is 3%, which are below the thresholds of 20% and 10%, respectively, as set by the EU Directive 2009/28/EC. By estimating panel data fixed-effects regression models, the results provide support for a positive influence of renewable energy overall, as well as by type, namely biomass, hydropower, geothermal energy, wind power, and solar energy on gross domestic product per capita. However, biomass energy shows the highest influence on economic growth among the rest of renewable energy types. In fact, a 1% increase of the primary production of solid biofuels increases GDP per capita by 0.16%. Besides, cointegrating regressions set on panel fully modified and dynamic ordinary least squares regressions confirm the positive influence related to the primary production of renewable energies on economic growth. A 1% increase in primary production of renewable energies increases GDP per capita by 0.05%-0.06%. However, the results of Granger causality based on panel vector error correction model indicate both in short-run and long-run a unidirectional causal relationship running from sustainable economic growth to the primary production of renewable energies, being supported the conservation hypothesis.

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The Revealed Relationships between Energy Consumption and Economic Growth: Causality, Macroeconomics, New Trend, and Implications

Chang

2015

Handbook of Clean Energy Systems

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The literature of the “energy–economy” relationship presents mixed conclusions. Such conclusions could attribute mainly to the differences in methodology (econometrics), the selection of the data (period, frequency, length, time series vs panel data), the variety of possible explanatory variables employed in the model, different dynamics (lag structure) modeled, heterogeneity in the behavior of different sectors in the economy, heterogeneity in climate conditions, and various levels of development and economic structure. Even for the same countries, as its economy develops and its structure changes, the short‐run and long‐run relationships between energy consumption and economic growth may also change. This article reviews the literature on the “energy–economy” relationship and presents the evidence from studies that apply various methodologies and raise the research question at different levels of details and with different perspectives. It presents the relationships in four distinct hypotheses: a unidirectional causality from economic growth to energy consumption, a unidirectional causality from energy consumption to economic growth, a bidirectional feedback between energy consumption and economic growth, and no relationship at all (i.e., the neutrality hypothesis). This article also dives into the role played by other macroeconomic factors such as population, capital stock, prices, and technologies in revealing the true relationship between energy consumption and economic growth. The literature has started to pay more attention to sectoral characteristics of energy consumption and economic growth as well as the characteristics of different types of energy such as oil, natural gas, coal, nuclear, and renewable energy. These factors could reveal the new details of the hypotheses that drive a causality in either direction. Finally, this article presents relevant policy implications derived from the revealed relationships.

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Economic welfare impacts from renewable energy consumption: The China experience

Cited by 269 publications

References 43 publications

The impact of renewable energy consumption to economic growth: A panel data application

The impact of renewable energy consumption to economic growth: A panel data application

Does Renewable Energy Drive Sustainable Economic Growth? Multivariate Panel Data Evidence for EU-28 Countries

The Revealed Relationships between Energy Consumption and Economic Growth: Causality, Macroeconomics, New Trend, and Implications

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