Threshold effect of the economic growth rate on the renewable energy development from a change in energy price: Evidence from OECD countries

Determinants of renewable energy growth in Sub-Saharan Africa: Evidence from panel ARDL

“…This mixed effect of prices is not new in the literature: for instance, Marques et al (2010) found a negative relation between coal prices and the use of renewables for non EU-members. This effect may have two different causes: first, as found by Chang et al (2009), there is a threshold of the impact of an increased price of fossil fuels on renewables adoption as only countries with an high economic growth deal better with high energy prices, because it is easier to support the high costs connected with renewable technologies. In the current context, as we are studying SSA countries, which are mostly Low Income Countries the increase price on fossil fuels may divert resources from the building renewable energy infrastructures and so decrease the share of renewable generation on the overall mix.…”

“…Similarly, Sadorsky (2009b) concluded that increases in real per capita income affect significantly and positively per capita RE consumption, meaning that higher economic growth would require more RE as a share of the total energy consumption. Chang et al (2009) improved on the study of Sadorsky (2009aSadorsky ( , 2009b by investigating the influence that energy prices have on RE development under different economic growth rate regimes for the OECD member-countries. The results suggested that countries with high rates of economic growth can respond to energy price impacts by changing their use of RE.…”

Modeling Renewable Energy Consumption for a Greener Global Economy

“…To date there have been several published papers looking at the relationship between renewable energy consumption and various macroeconomic variables (like income, oil prices, capital, labour) at the country or regional level (see for example, Apergis & Payne, 2010a, 2010b, 2011Chang et al, Lee, 2009;Chien & Hu, 2007Marques et al, 2010;Menyah & Wolde-Rufael, 2010;Sadorsky, 2009aSadorsky, , 2009b 7 . The consensus from most of this research is that increases in income are a major driver behind increased renewable energy consumption.…”

“…No short-term evidence of statistically significant Granger causality is found between GDP and renewable energy consumption. Chang et al (2009) use threshold econometric techniques to investigate the relationship between economic growth and renewable energy supply for OECD member countries over the period 1997 to 2006. The threshold approach allows for a distinction on how renewable energy supply depends upon different economic growth regimes (like high or low).…”

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“…Vast literature has written extensively on the relationship between energy consumption and economic growth. For instance, Li (2003) and Cheng (2013) …”