Renewable energy-economic growth nexus revisited for the USA: do different approaches for modeling structural breaks lead to different findings?

Energy-growth nexus in Australia and New Zealand for the past 150 years-evidence from time-varying and quantile Granger causality analysis

Using historical data on energy from (Malanima 2020) and GDP from the Maddison Project Database, this paper investigates the energy-growth nexus in a less-studied region, mainly Australia and New Zealand, since 1870. The long annual series allow meaningful application of recently developed time-varying and quantile Granger causality analysis. Results indicate that there is a bi-directional Granger causal relationship between economic growth and energy, coal, and oil consumption at both ends of the distribution, and during various time periods over the past 150 years. Little evidence is found on the Granger causal relationship from gas consumption to economic growth, but some evidence on the direction from economic growth to gas consumption. The Granger causal relationships between electricity consumption and GDP change over time, but results suggest much closer links between the two in most recent decades, and big (positive and negative) changes in electricity consumption significantly Granger causes economic growth.

Revisiting the impact of renewable energy consumption on economic growth: sectoral evidence from the USA

The aim of this study is to investigate the relationship between sectoral renewable energy consumption and economic growth in the US economy for the period 1950-2020 by using the Fourier component augmented unit root, cointegration, and causality analyses for the transportation, industrial, residential, electric power, and commercial sectors. Our results reveal in the long run that renewable energy will Granger cause growth through the new jobs it will create, the restructuring of the economy which is a prerequisite for replacing fossil energy with renewable energy. On the other hand, causal relationships are less stable and methodology and sector specific in the short run. Accordingly, the electric power and industrial sectors experience conservation patterns in terms of renewable energy consumption, while the growth hypothesis is confirmed for the commercial sector. Different implications are generated for each sector, which are now more important than ever given the current energy crisis in Europe and the urgent need to reduce dependence on fossil fuels.

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

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.

The impact of renewable energy consumption on economic growth in Nigeria: fresh evidence from a non-linear ARDL approach

The topic of climate change is so crucial that experts, world leaders, and international organizations are constantly working on how to solve this problem. One of the recommendations lies in using renewable energy to protect the global ecosystem and promote environmental sustainability. This study, therefore, examines the impact of renewable energy consumption (RNEW) on economic growth (RGDP) in Nigeria within the period of 1990Q1-2019Q4 using a non-linear autoregressive distributed lag (NARDL) model. This research contributes to existing literature by focusing on a single-country analysis using the NARDL methodology. Nigeria has the highest GDP in Africa and can drive continental growth. In addition, the NARDL approach examines the positive and negative shocks of the independent variables on the dependent variable. The bound test result confirms cointegration among the variables. Further results show that a positive shock of RNEW decreases RGDP, while a negative shock increases RGDP in the long run. This result differs from existing literature in which a majority of the studies found a positive relationship between RNEW and RGDP. In the short run, a positive shock of RNEW increases RGDP, while a negative shock decreases RGDP, although not significant. A positive shock in RNEW hurts RGDP because of the nature and source of renewable energy used in Nigeria, majorly wood biomass. Therefore, this study recommends that cleaner technologies be utilized to maximize the advantages of renewable energy sources, especially wood biomass, while minimizing their adverse effects.

Toward Understanding Renewable Energy and Sustainable Development in Developing and Developed Economies: A Review

In recent years, there has been an upsurge of studies on sustainable development. The majority of research focuses on developed countries and issues that are incompatible with developing nations. This study addresses a gap in the literature by reviewing the research on developed and developing economies, as well as their social and environmental boundaries, under the renewable energy and sustainable development (RESD) nexus. It also explores how RESD may be applied in extreme situations such as population increase, energy supply disruptions, and transportation shortfalls. The fundamental contribution of this paper is to provide detailed debate from the perspective of economic growth hypotheses and their relationship with energy usage and renewable energy solutions for sustainable growth and development.

Are Stock Markets among BRICS Members Integrated? A Regime Shift-Based Co-Integration Analysis

Long-run relationships and structural breaks have often been confused so that many investigators ignore the structural breaks in long-run stock price relationships. In this paper, we investigate the long-run relationships among stock prices in BRICS countries in a bivariate framework. We used a non-linear threshold cointegration test, which endogenously incorporates possible regime shift behaviors into the long-run relationships from 2004 to 2018. The Johansen cointegration test, the Gregory and Hansen cointegration test, and the Hatemi-J regime shift cointegration test, which allow for single and double structural breaks, were used. The principal finding of this paper confirms the presence of cointegration among the BRICS stock markets with two endogenous structural breaks. The study confirms that ignoring the presence of structural breaks in long-run series data can produce ambiguous results. It also confirms the absence of cointegration among these stock markets (Brazil and China, India and China, and China and South Africa) after two endogenous structural breaks. These empirical findings support conjecture on more than just the changes in the relationships between the BRICS stock markets. The disintegrated markets suggest the absence of arbitrage activity and vice versa. Thus, disintegrated markets mean that investors can obtain long-term gains through international portfolio diversification. While the benefit of the diversification is very limited in the long run, it is unlikely to be eliminated in practice. Hence, there is a possibility of obtaining an unusual profit in such a market, and consequently the assumptions of market efficiency could also be violated.