How Total Factor Productivity Drives Long-Run Energy Consumption in Saudi Arabia

Hasanov, Fakhri; Liddle, Brantley; Mikayilov, Jeyhun I.; Bollino, Carlo Andrea

doi:10.1007/978-3-030-06001-5_8

Cited by 7 publications

(6 citation statements)

References 61 publications

(96 reference statements)

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“…This might imply that TFP is mainly driven by oil sector developments. A similar picture was found for other oil-exporters (e.g., Hasanov et al, 2019 found that TFP in Saudi Arabia follows the oil sector development patterns). We will discuss the impact of TFP on the agriculture output later in this section.…”

Section: Discussion Of the Tfp Calculation And Growth Accountingsupporting

confidence: 80%

What Drives the Agricultural Growth in Azerbaijan? Insights from Autometrics with Super Saturation

Hasanov¹,

Suleymanov²,

Aliyeva³

et al. 2022

Acta Univ. Agric. Silvic. Mendelianae Brun.

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The development of the agricultural sector is essential for any economy, including Azerbaijan, the largest economy in the South Caucasus, as it plays an important role in food security, rural development, and environmental protection. For Azerbaijan, as an oil-dependent economy, it is also important for diversification of the non-oil sector. For this reason, the Azerbaijani government has adopted several programs and materialized massive investments to promote agricultural growth. This study examines the role of the production factors in the development of the sector using annual time series data for the period 1995-2017. Econometric analysis, mainly Autometrics -a cutting edge machine learning modeling algorithm-with super saturation, and Growth Accounting lead us to conclude that: (i) land, labor, and capital have statistically significant positive long-run impacts on agriculture output; (ii) the growth of the sector and the contributions of land and capital formation slowed down sharply, while the contributions of total factor productivity (TFP) and labor increased in 2009-2017 compared to the pre-2009 period; (iii) in the pre-2009 period, the sector's growth was hugely contributed by capital followed by TFP, labor and land; (iv) in 2009-2017 period, TFP followed by capital and labor contributed to the sector's growth, while the contribution of land was negative. The results are robust to different econometric methods and specifications. Overall, policymakers are recommended to consider that value-added and other key indicators of agriculture have grown less in 2009-2017 period compared to the pre-2009 period, given that one should expect more growth in the former period as numerous government programs and massive investments were materialized. They may also consider that the contributions of labor and land were quite small and negative, respectively. Lastly, policies leading to TFP growth should be supported.

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Section: Discussion Of the Tfp Calculation And Growth Accountingsupporting

confidence: 80%

What Drives the Agricultural Growth in Azerbaijan? Insights from Autometrics with Super Saturation

Hasanov¹,

Suleymanov²,

Aliyeva³

et al. 2022

Acta Univ. Agric. Silvic. Mendelianae Brun.

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“…Various factors have been identified to exert different effects on energy consumption at the national or regional level. Studies, including, Kwakwa et al (2020), Hasanov et al (2019), Adom and Kwakwa (2019), Kwakwa (2019), Rafindadi and Ozturk (2016) and Bass (2018), that have relied on the economic theory to model the drivers of energy consumption have revealed factors like income, price, trade, technology, dependency ratio, population, urbanization, industrialization, financial development and capital affect the amount of energy consumption.…”

Section: Literature Reviewmentioning

confidence: 99%

What determines renewable energy consumption? Startling evidence from Ghana

Kwakwa

2020

IJESM

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Purpose Owing to the adverse effect of carbon dioxide emission, there have been calls for economies to rely on (cleaner) renewable energy. Although empirical studies on the subject matter abound the conflicting outcome, the less attention paid to combustible renewable and waste, and the little empirical evidence of the effect of financial development and industrialization on renewable energy consumption necessitate further studies. This study aims to examine the drivers of renewable energy consumption for Ghana whose share of renewable energy consumption in the total energy consumption has been reducing over the past decade, with fossil fuel consumption remaining high. Design/methodology/approach Based on the demand theory and empirical studies, the paper models total renewable energy consumption and combustible renewables and waste as a function of income, price, financial development and industrialization. Regression and variance decomposition techniques were used to analyze the data. Findings Ghana’s renewable energy consumption is positively influenced by industrialization, but negatively influenced by price, income and financial development in the long run, while in the short run, industrialization and financial development affect renewable energy consumption. Research limitations/implications The findings imply that the transition to cleaner energy is not a matter of income level alone. Future research should investigate the drivers of other renewable energy consumption and the possible challenges to green finance in Ghana’s financial sector. Originality/value The effect of financial development and industrialization on renewable energy consumption is examined. Previous econometric analyses have also focused on total renewable energy, but this study adds combustible renewable and waste to the analysis.

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“…These results are agreed with the results of Tugcu and Tiwari (2016) causality test. Also, Hasanov et al (2019) have shown that TFP has a statistically significant impact on energy consumption in the long-run.…”

Section: Results Interpretationsmentioning

confidence: 99%

“…The first study on causality between energy consumption and total factor productivity was introduced by Schurr (1983) and Jorgenson (1984). After that, many researchers have studied the link between different types of energy consumption and TFP (Abou, 2020;Afonso, Marques, & Fuinhas, 2017;Al-Iriani, 2006;Bhattacharya, Paramati, Ozturk, & Bhattacharya, 2016;Boyd & Pang, 2000;Costantini & Martini, 2010;Da Silva, Cerqueira, & Ogbe, 2018;Giang, Xuan, Trung, & Que, 2019;Hasanov, Mikayilov, Bollino, & Liddle, 2019;Hisnanick & Kymn, 1992;Ladu & Meleddu, 2014;Soava, Mehedintu, Sterpu, & Raduteanu, 2018;Tugcu, 2013;Tugcu & Tiwari, 2016).…”

Section: A Brief Review Of Literaturementioning

confidence: 99%

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Renewable and non-renewable energy consumption and total factor productivity growth: The case of G20 countries

Neffati,

Jbir,

Benzina

2023

5049

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The purpose of this paper is to investigate the short and long-run relationships between renewable, non-renewable energy consumption (NREC) and economic growth. This study highlights the importance of renewable energy consumption to improve the total factor productivity (TFP) in G20 countries spanning on 2002-2018. Using the approach of panel Feasible Generalized Least Squares (PFGLS) cross-section and period weight and FGLS cross-section and period sur robust, we have divided the sample in three groups: G20, G7 and G20-G7. The findings show that there is a negative effect of Renewable Energy Consumption (REC) on TFP in G7 and a positive effect in the other groups. Our main results indicate that there is a strong significant and positive relationship between REC and TFP growth in the long run in the hull G20 countries. But, in the G7, there is a negative relationship due to the negative effect in the environment. The results of granger causality tests indicate the existence of one-way causality from NREC to TFP in G20 and G20-G7, while from TFP to NREC in G7. To boost overall productivity and maintain sustainable development, all nations must invest in renewable energy.

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How Total Factor Productivity Drives Long-Run Energy Consumption in Saudi Arabia

Cited by 7 publications

References 61 publications

What Drives the Agricultural Growth in Azerbaijan? Insights from Autometrics with Super Saturation

What Drives the Agricultural Growth in Azerbaijan? Insights from Autometrics with Super Saturation

What determines renewable energy consumption? Startling evidence from Ghana

Renewable and non-renewable energy consumption and total factor productivity growth: The case of G20 countries

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