Renewable and non-renewable energy consumption and economic activities: Further evidence from OECD countries
This article examines the dynamic relationship between renewable and non-renewable energy consumption and industrial output and GDP growth in OECD countries using data over the period of 1980–2011. The panel cointegration technique allowing structural breaks is used for empirical investigation. The...
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| Format: | Journal Article |
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Elsevier
2014
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| Online Access: | http://hdl.handle.net/20.500.11937/29545 |
| _version_ | 1848752832614760448 |
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| author | Salim, Ruhul Hassan, K. Shafiei, S. |
| author_facet | Salim, Ruhul Hassan, K. Shafiei, S. |
| author_sort | Salim, Ruhul |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | This article examines the dynamic relationship between renewable and non-renewable energy consumption and industrial output and GDP growth in OECD countries using data over the period of 1980–2011. The panel cointegration technique allowing structural breaks is used for empirical investigation. The results show that there is a long-term equilibrium relationship among non-renewable and renewable energy sources, industrial output and economic growth. The panel causality analyses show bidirectional causality between industrial output and both renewable and non-renewable energy consumption in the short and long run. However, there is evidence of bidirectional short-run relationship between GDP growth and non-renewable energy consumption while unidirectional causality between GDP growth and renewable energy consumption. These results indicate that OECD economies still remain energy-dependent for their industrial output as well as overall economic growth. However, expansion of renewable energy sources is a viable solution for addressing energy security and climate change issues, and gradually substituting renewable to non-renewable energy sources could enhance a sustainable energy economy. |
| first_indexed | 2025-11-14T08:14:53Z |
| format | Journal Article |
| id | curtin-20.500.11937-29545 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T08:14:53Z |
| publishDate | 2014 |
| publisher | Elsevier |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-295452019-02-19T05:35:39Z Renewable and non-renewable energy consumption and economic activities: Further evidence from OECD countries Salim, Ruhul Hassan, K. Shafiei, S. Non-renewable energy consumption Renewable energy consumption Cobb–Douglas production function Industrial output Real GDP This article examines the dynamic relationship between renewable and non-renewable energy consumption and industrial output and GDP growth in OECD countries using data over the period of 1980–2011. The panel cointegration technique allowing structural breaks is used for empirical investigation. The results show that there is a long-term equilibrium relationship among non-renewable and renewable energy sources, industrial output and economic growth. The panel causality analyses show bidirectional causality between industrial output and both renewable and non-renewable energy consumption in the short and long run. However, there is evidence of bidirectional short-run relationship between GDP growth and non-renewable energy consumption while unidirectional causality between GDP growth and renewable energy consumption. These results indicate that OECD economies still remain energy-dependent for their industrial output as well as overall economic growth. However, expansion of renewable energy sources is a viable solution for addressing energy security and climate change issues, and gradually substituting renewable to non-renewable energy sources could enhance a sustainable energy economy. 2014 Journal Article http://hdl.handle.net/20.500.11937/29545 10.1016/j.eneco.2014.05.001 Elsevier fulltext |
| spellingShingle | Non-renewable energy consumption Renewable energy consumption Cobb–Douglas production function Industrial output Real GDP Salim, Ruhul Hassan, K. Shafiei, S. Renewable and non-renewable energy consumption and economic activities: Further evidence from OECD countries |
| title | Renewable and non-renewable energy consumption and economic activities: Further evidence from OECD countries |
| title_full | Renewable and non-renewable energy consumption and economic activities: Further evidence from OECD countries |
| title_fullStr | Renewable and non-renewable energy consumption and economic activities: Further evidence from OECD countries |
| title_full_unstemmed | Renewable and non-renewable energy consumption and economic activities: Further evidence from OECD countries |
| title_short | Renewable and non-renewable energy consumption and economic activities: Further evidence from OECD countries |
| title_sort | renewable and non-renewable energy consumption and economic activities: further evidence from oecd countries |
| topic | Non-renewable energy consumption Renewable energy consumption Cobb–Douglas production function Industrial output Real GDP |
| url | http://hdl.handle.net/20.500.11937/29545 |