Investigating the effects of renewable energy utilization towards the economic growth of Sri Lanka: A structural equation modelling approach

Dasanayaka, Chamila H.; Perera, Yasith S.; Abeykoon, Chamil

doi:10.1016/j.clet.2021.100377

Cited by 17 publications

(10 citation statements)

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“…They approve of the fact that the consumption of renewable energy has achieved economic prosperity significantly. In the same line, Dasanayaka et al . (2022) attempt to assess the relationship between renewable energy consumption and economic growth in the case of Sri Lanka.…”

Section: Literature Reviewmentioning

confidence: 60%

“…They approve of the fact that the consumption of renewable energy has achieved economic prosperity significantly. In the same line, Dasanayaka et al (2022) attempt to assess the relationship between renewable energy consumption and economic growth in the case of Sri Lanka. The authors confirm that there is no significant direct impact between renewable energy consumption and economic growth, but there is an indirect impact via capital formation and also an indirect negative impact via the trade balance.…”

Section: Literature Reviewmentioning

confidence: 99%

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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: Literature Reviewmentioning

confidence: 60%

Section: Literature Reviewmentioning

confidence: 99%

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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“…Furthermore, Dasanayaka et al (2022) analyzed the effect of renewable energy on the economic growth of Sri Lanka, an island country in South Asia. They use a structural equation modeling approach.…”

Section: Renewable Energy Consumption and Economic Growthmentioning

confidence: 99%

Renewable and Non-renewable Energy Consumption in Indonesia: Does it Matter for Economic Growth?

Aswadi

Jamal

Syahnur

et al. 2023

IJEEP

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During the last decade, the energy sector has become important in shaping a country's economy. This study aims to analyze renewable and non-renewable energy's impact on Indonesia's economic growth. This study uses a quantitative method, using the Johansen cointegration test and FMOLS and DOLS cointegrating regression. The data period used in this study is from 1980-2019. The results of the study show that renewable energy consumption has a negative effect on Indonesia's economic growth. This is because renewable energy production is still limited, but the level of consumption continues to increase. Consumption of non-renewable energy has a positive effect on Indonesia's economic growth. The consumption of fossil energy causes this is still very high in Indonesia. Dependence on fossil energy is still high amid renewable energy production, which the government is continuously promoting. In general, energy consumption positively affects Indonesia's economic growth. When the two are combined, they positively contribute to the national economy.

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“…Urbanization strengthens the impact of RE on EG Li et al ( 2022b ) Financial market deepening, Financial institution deepening, Financial deepening index, CO 2 emissions BRICS Non-linear ARDL Financial market deepening and Financial institution deepening increase CO 2 emissions Magazzino et al ( 2022 ) RE, EG, carbon emissions, Scandinavian countries Granger causality test RE → EG Oliveira and Moutinho ( 2022 ) EG, RE, non-RE, globalization, carbon emissions BRICS GMM RR and non-RE, and globalization drive EG Gyimah et al ( 2022 ) EG, RE, non-RE, FDI, Gross capital formation Ghana Granger causality test RE increases EG. EG ↔ RE RE → FDI Fang et al ( 2022 ) RE, EG, R&D, green finance, industrialization, urbanization, FDI South Asia 2-Step OLS R&D promotes green growth in developing nations, especially in South Asia Chen et al ( 2022 ) EG, RE, interest rate, oil price, Wholesale electricity price New Zealand, Norway, and two Canadian provinces Markov-switching vector autoregression EG → RE Jeon ( 2022 ) EG, RE, non-RE, 47 states in the US GMM Re and non-RE increase and decrease EG, respectively Dasanayaka et al ( 2022 ) EG, RE, trade balance, energy import, GFCF Sri Lanka Structural equation model RE increases EG in Sri Lanka Zhao et al ...…”

Section: Brief Empirical Reviewmentioning

confidence: 99%

Unbundling the dynamic impact of renewable energy and financial development on real per capita growth in African countries

Konyeaso

Eregha

2022

Environ Sci Pollut Res

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Industrialization is considered imperative for growth but energy transitions are paramount for inclusive and green growth especially for a region with low financial sector development to spur investment in renewable energy. This study thus unbundles the interrelation among renewable energy production, financial development, and real per capita growth in 32 selected African countries from the period of 1996 to 2018. These countries are categorized on the basis of oil-rich and non-oil-rich as well as income levels. The study employs Pooled Mean Group, Augmented Mean Group, and Dynamic OLS, and key findings are established. The findings reveal a significantly positive renewable energy-economic growth relationship in all the different groups. Financial development is also found to improve economic performance in all categories except in non-oil-rich African countries. These findings empirically support the need for cleaner energy in the production process to spur inclusive and green growth amidst current global concern for climate change and global warning. This study thus recommends the restructuring of the energy pricing system, provision of long-term finance, adoption of risk mitigation instruments, and improved institutional framework for private participation in renewable energy infrastructural development for growth sustainability in Africa.

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Investigating the effects of renewable energy utilization towards the economic growth of Sri Lanka: A structural equation modelling approach

Cited by 17 publications

References 50 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

Renewable and Non-renewable Energy Consumption in Indonesia: Does it Matter for Economic Growth?

Unbundling the dynamic impact of renewable energy and financial development on real per capita growth in African countries

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