Renewable energy and growth: Evidence from heterogeneous panel of G7 countries using Granger causality

Chang, Tsangyao; Gupta, Rangan; Inglesi‐Lotz, Roula; Simo-Kengne, Beatrice Desiree; Smithers, Devon; Trembling, Amy

doi:10.1016/j.rser.2015.08.022

Cited by 162 publications

(70 citation statements)

References 32 publications

(42 reference statements)

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“…Using the ARDL model, Sebri and Ben-Salha (2014) find the bidirectional causal relationship between the renewable energy and the economic growth in BRICS countries from 1971 to 2010. Using the heterogeneous panel Granger causality test, Chang et al (2015) also find the bidirectional causality between the renewable energy and the economic growth in the G7 countries from 1990 to 2011. Using the K-L model and the Toda-Yamamoto causality test procedure, Yildirim and Aslan (2012) investigate the validity of energy-growth nexus in 17 OECD countries.…”

Section: Literature Reviewmentioning

confidence: 94%

Energy consumption and economic growth: New evidence from the OECD countries

Gözgör

Lau

2018

Energy

325

116

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This paper introduces a growth model that considers the indicator of economic complexity as a measure of capabilities for exporting the high value-added (sophisticated) products. Empirically, the paper analyzes the effects of the renewable and the non-renewable energy consumption on the economic growth in the panel data of 29 Organization for Economic Cooperation and Development (OECD) countries for the period from 1990 to 2013. For this purpose, the paper considers the panel autoregressive distributed lag (ARDL) and the panel quantile regression (PQR) estimations. The paper finds that not only the economic complexity, but also both the non-renewable and the renewable energy consumption are positively associated with a higher rate of economic growth.

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Section: Literature Reviewmentioning

confidence: 94%

Energy consumption and economic growth: New evidence from the OECD countries

Gözgör

Lau

2018

Energy

325

116

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“…Their empirical results indicated that renewable energy consumption plays a vital role in stimulating economic output. Chang et al (2015) examined the causal relationship between renewable energy consumption and economic growth across G-7 countries using annual data for the period of 1990-2011. Their results support the existence of a bi-directional causal relationship between economic growth and renewable energy for the overall panel.…”

Section: Panel Analysis On the Renewable Energy-economic Growth Nexusmentioning

confidence: 99%

Renewable energy, oil prices, and economic activity: A Granger-causality in quantiles analysis

2018

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This paper analyzes the causal relationship between renewable energy consumption, oil prices, and economic activity in the United States from July 1989 to July 2016, considering all quantiles of the distribution. Although the concept of Granger-causality is defined for the conditional distribution, the majority of papers have tested Granger-causality using conditional mean regression models in which the causal relations are linear. We apply a Granger-causality in quantiles analysis that evaluates causal relations in each quantile of the distribution. Under this approach, we can discriminate between causality affecting the median and the tails of the conditional distribution. We find evidence of bi-directional causality between changes in renewable energy consumption and economic growth at the lowest tail of the distribution; besides, changes in renewable energy consumption lead economic growth at the highest tail of the distribution. Our results also support the unidirectional causality from fluctuations in oil prices to economic growth at the extreme quantiles of the distribution. Finally, we find evidence of lower-tail dependence from changes in oil prices to changes in renewable energy consumption. Our findings call for government policies aimed at developing renewable energy markets, to increase energy efficiency in the U.S.

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“…Therefore, Delta  ) 5 test 5 In the  test approach, the first step is to compute the following modified version of Swamy's test as in . Chang, Rangan, Roula, Beatrice, Devon and Amy (2015). which is developed by for the first time, is applied to the variables.…”

Section: Testsmentioning

confidence: 99%

Causal Relationship between Foreign Direct Investment and Export: The Case of Developing Economies of Asia

Arslan

Çeliköz

Güzel

2018

Asian Economic and Financial Review

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Article HistoryReceived: 14 March 2018 Revised: 9 April 2018 Accepted: 11 April 2018 Published: 13 April 2018 KeywordsForeign direct investment Export Long-run causality Cross-section dependence Slope heterogeneity. JEL Classification:F10, F21, F23.Utilizing annual data from 1980-2015 for 19 developing economies of Asia, this study examines the causality relation between foreign direct investment and exports. According to the first part of Granger Causality results, China, Republic of Korea, Indonesia, Singapore and Turkey has causality from export to FDI at 1% significance level. Nepal, Sri Lanka, Philippines, Thailand and Oman has a causality from export to FDI at 5% significance level. Finally, it is possible to say that Bangladesh and India has a causality from export to FDI at 10% significance level, while the likelihood value is very close to the 5% significance value. According to the second part of the Granger causality relationship tests Sri Lanka, Indonesia and Turkey has a causality from FDI to export at 1% significance level, India, Nepal and Thailand has a causality from FDI to export at 5% significance level. Finally, the existence of a causality relationship from FDI to Export was found at 10% significance level in Hong Kong, Bangladesh, Singapore, Bahrain, Oman and Saudi Arabia. Briefly export led growth hypothesis is valid for developing economies of Asian countries. Contribution/ Originality: This study uses new estimation methodology to analyze causal relationshipbetween foreign direct investments and export which considering cross-section dependence and slope heterogeneity in addition to current literature.

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Renewable energy and growth: Evidence from heterogeneous panel of G7 countries using Granger causality

Cited by 162 publications

References 32 publications

Energy consumption and economic growth: New evidence from the OECD countries

Energy consumption and economic growth: New evidence from the OECD countries

Renewable energy, oil prices, and economic activity: A Granger-causality in quantiles analysis

Causal Relationship between Foreign Direct Investment and Export: The Case of Developing Economies of Asia

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