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

Öz

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

Anahtar Kelimeler

• Renewable Energy,Panel VAR,Economic Growth,CO2 Emissions

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

Öz

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

Anahtar Kelimeler

• Renewable Energy,Panel VAR,Economic Growth,CO2 Emissions

Kaynakça

1. ANDREWS, D.W.K. and LU, B., 2001, Consistent model and moment selection procedures for GMM estimation with application to dynamic panel data models. Journal of Econometrics, 101(1), 123-164.
2. ABRIGO, M. R.M. and LOVE, I., 2015, Estimation of panel vector autoregression in Stata: a package of programs. http://paneldataconference2015.ceu.hu/Program/Michael- Abrigo.pdf
3. AÏSSA, M.S., JEBLI, M.B. and YOUSSEF, S.B. 2014, Output, renewable energy consumption and trade in Africa. Energy Policy, 66, 11-18
4. AL-MULALI, U., FEREIDOUNI, H. G. and LEE JANICE, Y.M. 2014, Electricity consumption from renewable and non-renewable sources and economic growth: Evidence from Latin American countries, Renewable and Sustainable Energy Reviews, 30, 290-298.