Energy Consumption and Economic Growth in Small Island Economies

2019 ◽  
pp. 42-65
Author(s):  
Nikeel Kumar ◽  
Ronald R. Kumar ◽  
Peter J. Stauvermann
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Power Plants ◽  
Renewable Energy Sources ◽  
Tourism Industry ◽  
Fuel Oil ◽  
Small Island ◽  
Long Run ◽  
The Pacific

Petroleum is the primary source of energy used in transportation and electricity generation for many small Pacific island economies. Noting the growing demand for transportation and infrastructure services, we investigate the long-run association between petroleum consumption and output per worker in Fiji, a small island economy in the Pacific. We use a Cobb-Douglas framework and the ARDL bounds procedure with sample periods from 1980 to 2013. The results show that a 1 % increase in petroleum consumption results in 0.08 % increase in the long run economic growth. The granger non-causality results show that energy consumption causes economic growth, thus confirming energy-led growth hypothesis. The overall results underscore the need for efficient use of energy in general with the impetus to focusing on renewable energy as an important source of economic growth. We argue that energy in whichever form (renewable or non-renewable) is an integral input for economic growth for small island countries in the Pacific. Furthermore, the country is an importer and redistributor of petroleum to other neighbouring islands. The petroleum products comprise of motor gasoline, jet fuel, kerosene, distillate fuel oil, residual fuel oil, and liquefied petroleum gases (LPG). The operations of airlines, ferries, cruise liners and other types of transportation are linked with tourism industry and heavily rely on petroleum. Also, petroleum is used for generating electricity, and the usage increases during the hot and dry season to support the hydro power plants. Considering Fiji as a reference and petroleum as a major type of energy, the study examines the relationship between energy and economic growth, whilst accounting for capital and labour stock, and structural breaks. This study aims to provide impetus to efficient use and management of energy in the Pacific with the overarching aim to promote economic growth and fostering policies to gradually phase out non-renewable energy sources. Key words: petroleum consumption, growth, ARDL bounds approach, causality, structural break, Fiji.

scholarly journals Incorporating Environmental Pollution and Human Development in the Energy-Growth Nexus: A Novel Long Run Investigation for Pakistan

2020 ◽  
Vol 17 (14) ◽  
pp. 5154 ◽  
Author(s):  
Nabila Abid ◽  
Jianzu Wu ◽  
Fayyaz Ahmad ◽  
Muhammad Umar Draz ◽  
Abbas Ali Chandio ◽  
...  
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Human Development ◽  
Environmental Sustainability ◽  
Human Development Index ◽  
Renewable Energy Sources ◽  
Energy Sources ◽  
Renewable Energy Consumption ◽  
Long Run

Energy acts as a catalyst to boost the human development index (HDI) in a country. However, the overuse of energy leads to environmental deterioration, which is a byproduct of economic development. Due to the utilization of non-renewable energy sources for a long time, worldwide environmental conditions have become alarming. This study investigates the relationship between renewable and non-renewable energy consumption, economic growth, environmental sustainability, and the human development index (HDI) in Pakistan. The investigation incorporates population growth and technology variables to form a multivariate framework. We use a fully modified ordinary least squares (FMOLS) approach to time-series data from 1990–2017. To check the robustness of estimations, we apply the Gregory–Hansen test with a causality test under the VECM to confirm this association’s directions. Our findings confirm that non-renewable energy sources have a positive association with economic growth and CO2 emissions. However, human development, technology, and renewable energy boost economic development and reduce environmental pollution in Pakistan. The co-integration results confirmed the long run connectivity among all variables. The causality outcomes support the bidirectional causality between renewable and non-renewable energy consumption, economic growth, and CO2 emissions, both in the short and long run. These outcomes suggest that Pakistan should focus on energy shifts and gradually increase the share of renewables in its energy mix under the China Pakistan Economic Corridor (CPEC). Additionally, the government should increase human and technological development to enhance economic and environmental sustainability.

scholarly journals Renewable Energy and Economic Growth: Evidence from European Countries

2018 ◽  
Vol 10 (8) ◽  
pp. 2626 ◽  
Author(s):  
Stamatios Ntanos ◽  
Michalis Skordoulis ◽  
Grigorios Kyriakopoulos ◽  
Garyfallos Arabatzis ◽  
Miltiadis Chalikias ◽  
...  
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Renewable Energy Sources ◽  
European Countries ◽  
Energy Sources ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Fixed Capital Formation

This paper aims at examining the relationship between energy consumption deriving from renewable energy sources, and countries’ economic growth expressed as GDP per capita concerning 25 European countries. The used dataset involves European countries’ data for the period from 2007 to 2016. The statistical analysis is based on descriptive statistics, cluster analysis, and autoregressive distributed lag (ARDL), and reveals that all variables are related; this suggests a correlation between the dependent variable of GDP and the independents of renewable energy sources (RES) and Non-RES energy consumption, gross fixed capital formation, and labor force in the long-run. Furthermore, the results show that there is a higher correlation between RES’ consumption and the economic growth of countries of higher GDP than with those of lower GDP. The obtained results are consistent with other papers reviewed in this study.

scholarly journals Asymmetric impact of renewable and non-renewable energy on economic growth in Pakistan: New evidence from a nonlinear analysis

2020 ◽  
Vol 38 (5) ◽  
pp. 1946-1967
Author(s):  
Kashif Abbasi ◽  
Zhilun Jiao ◽  
Muhammad Shahbaz ◽  
Arman Khan
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Positive Impact ◽  
Renewable Energy Sources ◽  
Government Officials ◽  
Renewable Energy Consumption ◽  
Distributed Lag ◽  
Long Run ◽  
Asymmetric Impact

This paper explores the asymmetric relationship between renewable energy consumption, non-renewable energy, and terrorism on economic growth of Pakistan. We applied a novel econometric cointegration method known as a nonlinear autoregressive distributed lag modeling (NARDL). Our empirical findings indicate that positive and negative changes have a significant long-run asymmetric relationship between renewable energy, and terrorism on economic growth. We also found a negative and significant effect of non-renewable energy consumption on economic growth. To keep our environment clean and free of emissions, the study specifies policies that rely on renewable energy sources to boost economic growth. However, reduces terrorism has a positive impact on economic growth in the long-run and shows as an influential tool to combat terrorism in Pakistan. These novel results will help policy-makers and government officials to understand better the role of renewable energy and economic growth in Pakistan's development.

scholarly journals Empirical Research on the Relationship amongst Renewable Energy Consumption, Economic Growth and Foreign Direct Investment in Kazakhstan and Uzbekistan

Energies ◽  
2021 ◽  
Vol 14 (2) ◽  
pp. 332
Author(s):  
Janusz Grabara ◽  
Arsen Tleppayev ◽  
Malika Dabylova ◽  
Leonardus W. W. Mihardjo ◽  
Zdzisława Dacko-Pikiewicz
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Direct Investment ◽  
Renewable Energy Sources ◽  
Energy Sources ◽  
Renewable Energy Consumption ◽  
Integration Test ◽  
The Relationship

In this contemporary era, environmental problems spread at different levels in all countries of the world. Economic growth does not just depend on prioritizing the environment or improving the environmental situation. If the foreign direct investment is directed to the polluting industries, they will increase pollution and damage the environment. The purpose of the study is to consider the relationship between foreign direct investment in Kazakhstan and Uzbekistan and economic growth and renewable energy consumption. The study is based on data obtained from 1992 to 2018. The results show that there is a two-way link between foreign direct investment and renewable energy consumption in the considered two countries. The Granger causality test approach is applied to explore the causal relationship between the variables. The Johansen co-integration test approach is also employed to test for a relationship. The empirical results verify the existence of co-integration between the series. The main factors influencing renewable energy are economic growth and electricity consumption. To reduce dependence on fuel-based energy sources, Kazakhstan and Uzbekistan need to attract energy to renewable energy sources and implement energy efficiency based on rapid progress. This is because renewable energy sources play the role of an engine that stimulates the production process in the economy for all countries.

Kazakhstan: Assessment of Renewable Energy Support and a Green Economy

2021 ◽  
Vol 12 (3) ◽  
pp. 631
Author(s):  
Sergey BESPALYY
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Power Plants ◽  
Renewable Energy Sources ◽  
The State ◽  
Green Economy ◽  
Energy Sources ◽  
Environmentally Sustainable ◽  
The Government ◽  
The Impact

The growth of renewable energy sources (RES) shows the desire of the government of Kazakhstan to meet challenges that affect the welfare and development of the state. National targets, government programs, policies influence renewable energy strategies. In the future, renewable energy technologies will act as sources of a green economy and sustainable economic growth. The state policy in the field of energy in Kazakhstan is aimed at improving the conditions for the development and support of renewable energy sources, amendments are being made to provide for the holding of auctions for new RES projects, which replaces the previously existing system of fixed tariffs. It is expected that the costs of traditional power plants for the purchase of renewable energy will skyrocket, provided that the goals in the field of renewable generation are achieved. This article provides an assessment of international experience in supporting renewable energy sources, as well as analyzes the current situation in the development of renewable energy in Kazakhstan and the impact on sustainable development and popularization of the «green» economy. The study shows that by supporting the development of renewable energy sources, economic growth is possible, which is achieved in an environmentally sustainable way.

Consumption of combustible minerals in the context of the targets of sustainable development of Ukraine and global environment changes

2021 ◽  
Vol 3-4 (185-186) ◽  
pp. 109-125
Author(s):  
Myroslav Podolskyy ◽  
Dmytro Bryk ◽  
Lesia Kulchytska-Zhyhailo ◽  
Oleh Gvozdevych
Keyword(s):  
Sustainable Development ◽  
Renewable Energy ◽  
Natural Gas ◽  
Power Plants ◽  
Renewable Energy Sources ◽  
Thermal Power ◽  
Energy Resource ◽  
Fuel Oil ◽  
Energy Sources ◽  
The European Union

An analysis of Ukraine’s sustainable development targets, in particular in the field of energy, resource management and environmental protection, are presented. It is shown that regional energetic is a determining factor for achieving the aims of sustainable development. Changes in the natural environment in Ukraine due to external (global) and internal (local) factors that are intertwined and overlapped can cause threats to socio-economic development. It is proved that in the areas of mining and industrial activity a multiple increase in emissions of pollutants into the environment are observed. The comparison confirmed the overall compliance of the structure of consumption of primary energy resources (solid fossil fuels, natural gas, nuclear fuel, oil and petroleum products, renewable energy sources) in Ukraine and in the European Union, shows a steaby trend to reduce the share of solid fuels and natural gas and increasing the shares of energy from renewable sources. For example, in Ukraine the shares in the production and cost of electricity in 2018 was: the nuclear power plants – 54.33 % and in the cost – 26.60 %, the thermal power – 35.95 and 59.52 %, the renewable energy sources – 9.6 and 13.88 %. The energy component must be given priority, as it is crucial for achieving of all other goals of sustainable development and harmonization of socio-economic progress. The paper systematizes the indicators of regional energy efficiency and proposes a dynamic model for the transition to sustainable energy development of the region.

The Effect of Population, Public Investments, and Economic Growth on Regional Renewable Energy Consumption in Turkey

2021 ◽  
pp. 491-504
Author(s):  
Özlem Karadağ Albayrak
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Panel Data ◽  
Renewable Energy Sources ◽  
Regional Scale ◽  
Dynamic Panel Data ◽  
Energy Sources ◽  
Renewable Energy Consumption ◽  
Public Investments

Making the use of renewable energy sources widespread is of paramount importance for Turkey as for all countries. In this regard, the determiners of renewable energy consumption have been investigated. The effect of determining or factors affecting the use of renewable energy sources on a regional scale to Turkey were examined with different qualitative and quantitative research techniques. In this study, the factors of economic growth, public investments, and population are analyzed by considering regional differences on the consumption of renewable energy resources. The effect of regional economic growth, regional public investments, and regional population on the amount of regional renewable energy consumption were investigated by using panel data of 26 statistical regions of Level-2 classification in the period between 2010-2018 in Turkey. The results obtained by the dynamic panel data analysis concluded that economic growth and public investments at the regional level increased renewable energy consumption while the population growth decreased.

scholarly journals CO2 Emissions, Energy Consumption, and Economic Growth: New Evidence in the ASEAN Countries

2019 ◽  
Vol 12 (3) ◽  
pp. 145 ◽  
Author(s):  
Vo ◽  
Vo ◽  
Le
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Granger Causality ◽  
Co2 Emissions ◽  
Causal Effect ◽  
The Philippines ◽  
Policy Implications ◽  
Renewable Energy Consumption ◽  
Long Run

The members of the Association of Southeast Asian Nations (ASEAN) have made several attempts to adopt renewable energy targets given the economic, energy-related, environmental challenges faced by the governments, policy makers, and stakeholders. However, previous studies have focused limited attention on the role of renewable energy when testing the dynamic link between CO2 emissions, energy consumption and renewable energy consumption. As such, this study is conducted to test a common hypothesis regarding a long-run environmental Kuznets curve (EKC). The paper also investigates the causal link between carbon dioxide (CO2) emissions, energy consumption, renewable energy, population growth, and economic growth for countries in the region. Using various time-series econometrics approaches, our analysis covers five ASEAN members (including Indonesia, Myanmar, Malaysia, the Philippines, and Thailand) for the 1971–2014 period where required data are available. Our results reveal no long-run relationship among the variables of interest in the Philippines and Thailand, but a relationship does exist in Indonesia, Myanmar, and Malaysia. The EKC hypothesis is observed in Myanmar but not in Indonesia and Malaysia. Also, Granger causality among these important variables varies considerably across the selected countries. No Granger causality among carbon emissions, energy consumption, and renewable energy consumption is reported in Malaysia, the Philippines, and Thailand. Indonesia experiences a unidirectional causal effect from economic growth to renewable energy consumption in both short and long run and from economic growth to CO2 emissions and energy consumption. Interestingly, only Myanmar has a unidirectional effect from GDP growth, energy consumption, and population to the adoption of renewable energy. Policy implications have emerged based on the findings achieved from this study for each country in the ASEAN region.

scholarly journals Do High Oil Prices Obstruct the Transition to Renewable Energy Consumption?

2020 ◽  
Vol 12 (11) ◽  
pp. 4689 ◽  
Author(s):  
Shahriyar Mukhtarov ◽  
Jeyhun I. Mikayilov ◽  
Sugra Humbatova ◽  
Vugar Muradov
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Negative Impact ◽  
Oil Prices ◽  
Oil Price ◽  
Renewable Energy Consumption ◽  
Long Run ◽  
Carbon Dioxide Co2 ◽  
The Impact

The study analyzes the impact of economic growth, carbon dioxide (CO2) emissions, and oil price on renewable energy consumption in Azerbaijan for the data spanning from 1992 to 2015, utilizing structural time series modeling approach. Estimation results reveal that there is a long-run positive and statistically significant effect of economic growth on renewable energy consumption and a negative impact of oil price in the case of Azerbaijan, for the studied period. The negative impact of oil price on renewable energy consumption can be seen as an indication of comfort brought by the environment of higher oil prices, which delays the transition from conventional energy sources to renewable energy consumption for the studied country case. Also, we find that the effect of CO2 on renewable energy consumption is negative but statistically insignificant. The results of this article might be beneficial for policymakers and support the current literature for further research for oil-rich developing countries.

Renewable and non-renewable energy consumption and economic growth in the US: A Markov-Switching VAR analysis

2020 ◽  
pp. 0958305X2094403
Author(s):  
Emrah Ismail Cevik ◽  
Durmuş Çağrı Yıldırım ◽  
Sel Dibooglu
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Energy Demand ◽  
Fossil Fuels ◽  
The United States ◽  
Renewable Energy Consumption ◽  
Causality Test ◽  
Long Run ◽  
The Us

We examine the relationship between renewable and non-renewable energy consumption and economic growth in the United States. While the regime-dependent Granger causality test results for the non-renewable energy consumption and economic growth suggest bi-directional causality in both regimes, we cannot validate any causality between renewable energy consumption and economic growth. The US meets its energy demand from non-renewable sources; as such, renewable energy consumption does not seem to affect economic growth. Given the efficiency and productivity of renewable energy investments, we conclude that it is worthwhile to consider renewable energy inputs to replace fossil fuels given potential benefits in terms of global warming and climate change concerns. In this regard, increasing the R&D investments in the renewable energy sectors, increases in productivity and profitability of renewable energy investments are likely to accrue benefits in the long run.

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