ANALYZING OF THE VALIDITY OF ENERGY-GROWTH HYPOTHESIS IN N-11 COUNTRIES

Year 2016, Volume: 3 Issue: 3, 101 - 118, 29.07.2016

Ebru Çağlayan Akay , Zamira Oskonbaeva

https://doi.org/10.15637/jlecon.141

Abstract

This study aims to determine which energy-growth hypothesis is valid in Next-11 countries. We
adopt a panel estimation techniques for the period of 1984-2010 to examine the possibility of growth,
conservative, feedback, or neutrality hypotheses for Next-11 countries. Firstly, second generat on unit
root test are used to invest gate stationarity properties of the variables because of the cross-sectional
dependence.Then a panel cointegrat on and panel causality approach are proposed to examine the
causal relationship between the variables. Finally, panel vector autoregress on model,impulse- response and variance decomposition analysis are applied using generalized moment methods.
The findings obtained from panel Granger causality test suggests that there is evidence of uni - directional causality between renewable energy consumption and economic growth in the short-term,
which is consistent with the growth hypothesis. It is also found that the responses of growth to a shock
of renewable energy consumption are positive. Since there is evidence indicating that renewable
energy consumption may trigger economic growth

Keywords

Renewable Energy, Panel VAR, Economic Growth, CO2 Emissions

ANALYZING OF THE VALIDITY OF ENERGY-GROWTH HYPOTHESIS IN N-11 COUNTRIES

Abstract

This study aims to determine which energy-growth hypothesis is valid in Next-11 countries. We adopt a panel estimation techniques for the period of 1984-2010 to examine the possibility of growth, conservative, feedback, or neutrality hypotheses for Next-11 countries. Firstly, second generat on unit root test are used to invest gate stationarity properties of the variables because of the cross-sectional dependence.Then a panel cointegrat on and panel causality approach are proposed to examine the causal relationship between the variables. Finally, panel vector autoregress on model,impulse- response and variance decomposition analysis are applied using generalized moment methods. The findings obtained from panel Granger causality test suggests that there is evidence of uni - directional causality between renewable energy consumption and economic growth in the short-term, which is consistent with the growth hypothesis. It is also found that the responses of growth to a shock of renewable energy consumption are positive. Since there is evidence indicating that renewable energy consumption may trigger economic growth

Keywords

Renewable Energy, Panel VAR, Economic Growth, CO2 Emissions

References

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