The causal dynamics between renewable energy, real GDP, emissions and oil prices: evidence from OECD countries

This study extends the empirical literature on the determinants of renewable energy consumption in the case of 25 OECD countries for the period 1980–2011. Preliminary analysis suggests the presence of cross-sectional dependence within the panel data. As a result, second-generation panel unit root te...

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Main Authors: Apergis, Nicholas, Payne, J.
Format: Journal Article
Published: Routledge 2014
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/24441
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author Apergis, Nicholas
Payne, J.
author_facet Apergis, Nicholas
Payne, J.
author_sort Apergis, Nicholas
building Curtin Institutional Repository
collection Online Access
description This study extends the empirical literature on the determinants of renewable energy consumption in the case of 25 OECD countries for the period 1980–2011. Preliminary analysis suggests the presence of cross-sectional dependence within the panel data. As a result, second-generation panel unit root tests of Smith et al. (2004) and Pesaran (2007) are undertaken to find the respective variables that are integrated of order one. Panel cointegration and error correction modelling reveal that a long-run relationship exists between renewable energy consumptionper capita, real GDP per capita, carbon dioxide emissions per capita and real oil prices. The long-run elasticity estimates are positive and statistically significant for real GDP per capita, carbon dioxide emissions per capita and real oil prices. The panel error correction model shows that a feedback relationship exists among the variables.
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institution Curtin University Malaysia
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publishDate 2014
publisher Routledge
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spelling curtin-20.500.11937-244412017-09-13T15:09:36Z The causal dynamics between renewable energy, real GDP, emissions and oil prices: evidence from OECD countries Apergis, Nicholas Payne, J. OECD oil prices carbon dioxide emissions renewable energy This study extends the empirical literature on the determinants of renewable energy consumption in the case of 25 OECD countries for the period 1980–2011. Preliminary analysis suggests the presence of cross-sectional dependence within the panel data. As a result, second-generation panel unit root tests of Smith et al. (2004) and Pesaran (2007) are undertaken to find the respective variables that are integrated of order one. Panel cointegration and error correction modelling reveal that a long-run relationship exists between renewable energy consumptionper capita, real GDP per capita, carbon dioxide emissions per capita and real oil prices. The long-run elasticity estimates are positive and statistically significant for real GDP per capita, carbon dioxide emissions per capita and real oil prices. The panel error correction model shows that a feedback relationship exists among the variables. 2014 Journal Article http://hdl.handle.net/20.500.11937/24441 10.1080/00036846.2014.964834 Routledge restricted
spellingShingle OECD
oil prices
carbon dioxide emissions
renewable energy
Apergis, Nicholas
Payne, J.
The causal dynamics between renewable energy, real GDP, emissions and oil prices: evidence from OECD countries
title The causal dynamics between renewable energy, real GDP, emissions and oil prices: evidence from OECD countries
title_full The causal dynamics between renewable energy, real GDP, emissions and oil prices: evidence from OECD countries
title_fullStr The causal dynamics between renewable energy, real GDP, emissions and oil prices: evidence from OECD countries
title_full_unstemmed The causal dynamics between renewable energy, real GDP, emissions and oil prices: evidence from OECD countries
title_short The causal dynamics between renewable energy, real GDP, emissions and oil prices: evidence from OECD countries
title_sort causal dynamics between renewable energy, real gdp, emissions and oil prices: evidence from oecd countries
topic OECD
oil prices
carbon dioxide emissions
renewable energy
url http://hdl.handle.net/20.500.11937/24441