Examining the Connection amongst Renewable Energy, Economic Growth and Carbon Dioxide Emissions in Algeria

Abstract

In this paper, we shall study the relationship between renewable energy, economic growth (GDP), carbon dioxide emissions and with control variable that are estimated into realized volatility and to verify if the EKC hypothesis is accepted or not. This study is focussed on the Algerian situation during the periods of 1995-2016 and we employed the VECM procedure and Granger causality to estimate the short and long-run coefficients. We found with VECM that an increase in carbon dioxide emissions, fossil energy consumption and production will raise the level of economic growth, while an increase in GDP, fossil energy consumption and production will upsurge the level of carbon dioxide emissions, but an increase in renewable energy consumption will reduce both GDP and carbon dioxide emissions. We concluded in the short-term that there's bidirectional causality between carbon dioxide emissions and GDP and there is unidirectional causality running from renewable energy consumption to carbon dioxide emissions.

The impact of economic uncertainty, economic growth and energy consumption on environmental degradation in MENA countries: Fresh insights from multiple thresholds NARDL approach

“…They established that the EKC hypothesis is not valid, because the expansion in production level will not stop the USA’s growth and will create a collapse in the environment. Sari-Hassoun et al ( 2019 ) investigated the link between fossil energy, renewable energy, carbon dioxide emissions, and economic growth in Algeria during the period of 1995–2016. To analyze the influence in the short and long term, they used Granger causality and the vector error correction model (VECM).…”

“…According to Friedlingstein et al ( 2010 ), they noticed that before 2100, the quantity of carbon will increase by 9 times than now and it is going to reach an unbelievable quantity of carbon that the atmosphere would not be able to support. Therefore, such outcomes push policymakers to search for solutions to the coming environmental disaster (Ke et al 2022 ; Sari-Hassoun et al 2019 ). The depletion of natural resources and pollution has become a severe issue that necessitates a rethinking of current government policy (Sharif et al 2020b ; Jahanger et al 2022b ; Usman and Balsalobre-Lorente 2022 ; Sari-Hassoun and Ayad 2020 ).…”

“…Kuznets (1955) studied several graphs of the economic inequality against per capita income over the economic development, but since then, Grossman and Krueger (1991) and Nemat (1994) have transferred the curve of Kuznets into a new model and new hypothesis, which is called the EKC. This hypothesis examines the association between pollution and economic growth (Sari-Hassoun et al 2019). In the first period, the economic growth can escalate the rate of pollution the way of industry and chemical production, especially for the nations, which rely on fossil fuel production (Chen and Taylor 2020).…”

Economic growth, carbon dioxide emissions and energy consumption in Algeria: a wavelet coherence approach

“…Whereas, Lacheheb et al (2015) found that the EKC does not exist for Algeria over the period 1971–2009. In the same vein, Sari Hassoun et al (2018) investigated the nexus amongst renewable energy, economic growth and CO 2 emissions in Algeria over the period 1995–2016 and found that an increase in GDP and energy consumption upsurge the level of carbon emissions. Amri (2017) identified the linkage between nonrenewable energy consumption, renewable energy consumption, economic growth and CO 2 emissions in Algeria during 1980–2011.…”

RENEWABLE ENERGY AND SUSTAINABLE DEVELOPMENT: EVIDENCE FROM 17 OECD COUNTRIES / Renewable Energy and Sustainable Development: Evidence from 17 OECD Countries

“…A number of investigations showed the importance to include the renewable energy into the energy system and its positive relationship with the economic growth (Inglesi-Lotz, 2016; Rafindadi and Ozturk, 2017; Armeanu et al, 2017;Koçak and Şarkgüneşi, 2017;Atems and Hotaling, 2018;Adams et al, 2018;Sari Hassoun and Mekidiche, 2019). These scholars employed different methodologies with several econometrics models, and they used many control variables such as the gross fixed capital formation (capital), the labour force, the non-renewable energy consumption and production, institution variables…etc.…”