Hydroelectricity consumption and economic growth nexus: Evidence from a panel of ten largest hydroelectricity consumers

Abstract

This paper explores the long-run and causal relationships between hydroelectricity consumption and economic growth for a panel of the 10 largest hydroelectricity For the pre-1988 period, there is evidence of unidirectional causality running from real GDP per capita to hydroelectricity per capita in both the short-and long-run. Over the post-1988 period, there exists evidence of bidirectional causality between hydroelectricity energy consumption per capita and real GDP per capita in both the short-and the longrun. The results imply the existence of a feedback hypothesis with both hydroelectricity consumption and growth promoting each other in more recent periods, as the importance of hydroelectricity as a renewable energy, has become more prominent.

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

“…Solarin and Ozturk [63] explored seven Latin America countries over 1970-2012 and supported the long-run bidirectional causality between hydroelectricity consumption and economic growth in Argentina and Venezuela, withal long-run unidirectional causality from hydroelectricity consumption to economic growth in Brazil, Chile, Colombia, Ecuador, and Peru. For a sample of the 10 major hydroelectricity consuming states during 1965-2012, Apergis et al [64] documented for the pre-1988 period the unidirectional causality from real GDP per capita to hydroelectricity per capita, whilst bidirectional causality for the post-1988 period.…”

“…The multivariate framework includes gross domestic product per capita as proxy for sustainable economic growth [8,18,19,32,40,[45][46][47]49,50,53,55,59,64,[67][68][69]72], renewable energy measures (both overall and by type), and country-level controls, as given in Table 2. …”

“…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.…”

Electricity generation mix and economic growth: What role is being played by nuclear sources and carbon dioxide emissions in France?

“…Hereafter, the operators "L" and "D" denote the natural logarithm and the first differences of the variables, respectively. The variables are based on those found in the literature (Apergis et al, 2016;Cowan et al, 2014;Marques et al, 2016), except the CO2 emissions due to their unusual monthly frequency, which will be explained below. In short, the relationship between the electricity generation mix, the environment and growth was studied using variables of economic growth (Industrial Production Index -IPI -as proxy); electricity mix (several electricity sources, renewables and non-renewables); and environment (CO2 emissions).…”

Multi-Criteria Decision-Making Approach for the Sustainable Autonomous Energy Generation through Renewable Sources. Studying Zakynthos Island in Greece

“…Such power installations typically produce up to 100kW power. Hydropower is currently produced in 150 countries, and represents about 16% of the total electricity production (Apergis, Chang, Gupta & Ziramba, 2016), while it is estimated that 2/3 of the economically feasible potential remain to be developed (Santos, Vieira, Tiago Filho, Barros & Souza, 2016).…”