Growth and renewable energy in Europe: A random effect model with evidence for neutrality hypothesis

Energy Economics

Volumn 33, Issue 2, 2011, Pages 257-263

  Menegaki, Angeliki N ^a  

^a DEMOCRITUS UNIVERSITY OF THRACE   (Greece)

Author keywords

Europe; Growth; Panel; Random effect model; Renewable energy

Indexed keywords

EUROPE; GROWTH; PANEL; RANDOM EFFECTS; RENEWABLE ENERGIES;

ECONOMIC AND SOCIAL EFFECTS; ECONOMICS; ENERGY UTILIZATION; GAS EMISSIONS; GLOBAL WARMING; GREENHOUSE EFFECT; GREENHOUSE GASES; RANDOM PROCESSES;

RENEWABLE ENERGY RESOURCES;

COINTEGRATION ANALYSIS; ECONOMIC GROWTH; EMPIRICAL ANALYSIS; EMPLOYMENT; ENERGY RESOURCE; ENERGY USE; GREENHOUSE GAS; GROSS DOMESTIC PRODUCT; MULTIVARIATE ANALYSIS; NUMERICAL MODEL; RENEWABLE RESOURCE;

EUROPE;

EID: 79251596377     PISSN: 01409883     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.eneco.2010.10.004     Document Type: Article

References (64)

1. Acaravci A., Özturk I. Electricity consumption-growth nexus: evidence from panel data for transition countries. Energy Economics 2010, 32:604-608.
2. Apergis N., Payne J.E. Energy consumption and economic growth in Central America: evidence from a panel cointegration and error correction model. Energy Economics 2009, 31:211-216.
3. Apergis N., Payne J.E. Renewable energy consumption and growth in Eurasia. Energy Economics 2010, 32(6):1392-1397.
4. Apergis N., Payne J.E. Renewable energy consumption and economic growth: evidence from a panel of OECD countries. Energy Policy 2010, 38:656-660.
5. Apergis N., Payne J.E. The renewable energy consumption-growth nexus in Central America. Applied Energy 2011, 88:343-347.
6. Arbex M., Perobelli F.S. Solow meets Leontief: economic growth and energy consumption. Energy Economics 2010, 32:43-53.
7. Bai J., Ng S. Determining the number of factors in approximate factor models. Econometrica 2002, 70:191-221.
8. Bai J., Ng S. A panic attack on unit roots and cointegration. Econometrica 2004, 72:1127-1177.
9. Balestra P., Nerlove M. Pooling cross section and time-series data in the estimation of a dynamic model: the demand for natural Gas. Econometrica 1966, 34:585-612.
10. Barbieri L. Panel unit root tests: a review, Università Cattolica del Sacro Cuore, Dipartimento di Scienze Economiche e Sociali - Piacenza Available from, [accessed on 06/06/2010]. http://www3.unicatt.it/unicattolica/dipartimenti/DISES/allegati/LBarbier i43.pdf.
11. Bartleet M., Gounder R. Energy consumption and economic growth in New Zealand: results of trivariate and multivariate models. Energy Policy 2010, 38:3508-3517.
12. Beck, F. and Martinot, E. (2004). Renewable Energy Policies and Barriers, Forthcoming in Encyclopedia of Energy, Cutler J. Cleveland, ed. (Academic Press/Elsevier Science).
13. Breusch T., Pagan A. The LM test and its applications to model specification in econometrics. Review of Economic Studies 1980, 47:239-254.
14. Business Green EU names and shames renewable energy laggards Available from, [accessed on 15/06/2010]. http://www.businessgreen.com/business-green/news/2259430/eu-names-shames -renewable.
15. Chang Y. Nonlinear IV unit root tests in panels with cross-sectional dependency. Journal of Econometrics 2002, 110:261-292.
16. Chang Y. Bootstrap unit root tests in panels with cross-sectional dependency. Journal of Econometrics 2004, 120:263-293.
17. Chiu C.-L., Chang T.-H. What proportion of renewable energy supplies is needed to initially mitigate CO2 emissions in OECD member countries?. Renewable and Sustainable Energy Reviews 2009, 13:1669-1674.
18. Choi, I. (1999). "Asymptotic analysis of a nonstationary error component model", Manuscript, Kookmin University, Korea.
19. Choi I. Unit root tests for panel data. Journal of International Money and Finance 2001, 20:249-272.
20. Choi, I. (2002). Combination unit root tests for cross-sectionally correlated panels, mimeo, Hong Kong University of Science and Technology.
21. Costantini V., Martini C. The causality between energy consumption and economic growth: a multi-sectoral analysis using non-stationary cointegrated panel data. Energy Economics 2010, 32:591-603.
22. Engle R.F., Granger C.W.J. Cointegration and error correction: representation, estimation and testing. Econometrica 1987, 55:251-277.
23. Erdal G., Erdal H., Esengün K. The causality between energy consumption and economic growth in Turkey. Energy Policy 2008, 36:3838-3842.
24. European Commission Communication from the Commission; energy for the future: renewable sources of energy, White Paper for a Community Strategy and Action Plan COM(97) 599 final (26/11/1997) Available from, [accessed on 13/06/2010]. http://europa.eu/documents/comm/white_papers/pdf/com97_599_en.pdf.
25. European Commission Directive 2001/77/ec of the European parliament and of the council of 27 September 2001 on the promotion of electricity produced from renewable energy sources in the internal electricity market. Official Journal of the European Communities 2001, L 283/33-40. 27.10.2001.
26. European Commission Directive 2009/28/EC of the European Parliament and of the council of 23 April 2009 on the promotion of the use of energy from renewable sources and amending and subsequently repealing Directives 2001/77/EC and 2003/30/EC. Official Journal of the European Union 2009, L 140/16-62. 5.6.2009.
27. Renewable energy: forecast documents European Commission, Available at, [accessed on 15/06/2010]. http://ec.europa.eu/energy/renewables/transparency_platform/forecast_doc uments_en.htm.
28. European Renewable energy Council Greenpeace energy blueprint shows governments how investing in green energy jobs can save the climate and end fossil fuel addiction Available from, [accessed on 10.06.2010]. http://www.erec.org/fileadmin/erec_docs/Documents/Press_Releases/PressRe lease_ER2010.pdf.
29. Eurostat Statistics Database Available from, [Accessed on 26/05/2010]. http://epp.eurostat.ec.europa.eu/portal/page/portal/statistics/search_da tabase.
30. Francis B.M., Moseley L., Iyare S.O. Energy consumption and projected growth in selected Caribbean countries. Energy Economics 2007, 29:1224-1232.
31. Ghali K.H., El-Sakka M.I.T. Energy use and output growth in Canada: a multivariate cointegration analysis. Energy Economics 2004, 26:225-238.
32. Green W.H. Econometric Analysis 2003, Prentice Hall, Upper Saddle River, New Jersey. 5th ed.
33. Gujarati D.N. Basic Econometrics 1995, McGraw-Hill Inc, United States of America. 3rd edition.
34. Hadri K. Testing for unit roots in heterogeneous panel data. Econometrics Journal 2000, 3:148-161.
35. Hausman J. Specification tests in econometrics. Econometrica 1978, 46:1251-1271.
36. Hondroyiannis G., Lolos S., Papapetrou E. Energy consumption and economic growth: assessing the evidence from Greece. Energy Economics 2002, 24:319-336.
37. House of Lords, European Union Committee. 'The EU's target for renewable energy: 20% by 2020', Volume I: Report, 27th Report of Session, 2007-08, HL Paper 175-I.
38. Huang B.-N., Hwang M.J., Yang C.W. Causal relationship between energy consumption and GDP growth revisited: a dynamic panel data approach. Ecological Economics 2008, 67:41-54.
39. Im, K.S., Pesaran, M.H. and Shin, Y. (1997). "Testing for unit roots in heterogeneous panels", mimeo, Department of Applied Economics, University of Cambridge.
40. Im K.S., Pesaran M.H., Shin Y. Testing for unit roots in heterogeneous panels. Journal of Econometrics 2003, 115:53-74.
41. Jäger-Waldau A. Photovoltaics and renewable energies in Europe. Renewable and Sustainable Energy Reviews 2007, 11:1414-1437.
42. Judge G., Griffiths W., Hill C., Lee T. The Theory and Practice of Econometrics 1985, John Wiley and Sons, New York.
43. Lee C.C., Chang C.P. Energy consumption and economic growth in Asian economies: a more comprehensive analysis using panel data. Resource and Energy Economics 2008, 30:50-65.
44. Levin, A. and Lin, C.F. (1992). "Unit root test in panel data: asymptotic and finite-sample properties", Discussion Paper, 92-93, Department of Economics, University of California at San Diego.
45. Levin, A. and Lin, C.F. (1993). "Unit root test in panel data: new results", Discussion Paper, 93-56, Department of Economics, University of California at San Diego.
46. Levin A., Lin C.F., Chu C.S.J. Unit root tests in panel data: asymptotic and finite-sample properties. Journal of Econometrics 2002, 108:1-24.
47. Lise W., Montfort K.V. Energy consumption and GDP in Turkey: is there a co-integration relationship?. Energy Economics 2007, 29:1166-1178.
48. Maddala G., Wu S. A comparative study of unit root tests and a new simple test. Oxford Bulletin of Economics and Statistics 1999, 61:631-652.
49. 2 emissions, nuclear energy, renewable energy and economic growth in the US. Energy Policy 2010, 38:2911-2915.
50. Míguez J.L., López-González L.M., Sala J.M., Porteiro J., Granada E., Morán J.C., Juárez M.C. Review of compliance with EU-2010 targets on renewable energy in Galicia (Spain). Renewable and Sustainable Energy Reviews 2006, 10:225-247.
51. Mishra V., Smyth R., Sharma S. The energy-GDP nexus: evidence from a panel of Pacific Island countries. Resource and Energy Economics 2009, 31:210-220.
52. Moon H.R., Perron B. Testing for a unit root in panel with dynamic factors. Journal of Econometrics 2004, 122:81-126.
53. Mulder A. Do economic instruments matter? Wind turbine investments in the EU(15). Energy Economics 2008, 30:2980-2991.
54. O'Connell P.G.J. The overvaluation of purchasing power parity. Journal of International Economics 1998, 44:1-19.
55. Özturk ?. A literature survey on energy-growth nexus. Energy Policy 2010, 38:340-349.
56. Özturk I., Aslan A., Kalyoncu H. Energy consumption and economic growth relationship: evidence from panel data for low and middle income countries. Energy Policy 2010, 38:4422-4428.
57. Pesaran, M.H. (2003). A simple panel unit root test in the presence of cross section dependence, mimeo, Cambridge University.
58. Sadorsky P. Renewable energy consumption and income in emerging economies. Energy Policy 2009, 37:4021-4028.
59. Soytas U., Sari R. Energy consumption, economic growth, and carbon emissions: challenges faced by an EU candidate member. Ecological Economics 2009, 68:1667-1675.
60. Stenzel T., Foxon T., Gross R. Review of renewable energy development in Europe and USA, Imperial College London Centre for Energy Policy and Technology, Iccept, Oct.2003 pp.74, Available from, [accessed 13/06/2010]. http://webarchive.nationalarchives.gov.uk/tna/+/http://www.dti.gov.uk/re newables/policy/iceptreview.pdf.
61. Tsani S. Energy consumption and economic growth: a causality analysis for Greece. Energy Economics 2010, 32:582-590.
62. Uyterlinde M.A., Junginger M., de Vries H.J., Faaij A.P.C., Turkenburg W.C. Implications of technological learning on the prospects for renewable energy technologies in Europe. Energy Policy 2007, 35:4072-4087.
63. Wolde-Rufael Y. Energy consumption and economic growth: the experience of African countries revisited. Energy Economics 2009, 31:217-224.
64. Yuan J.-H., Kang J.-G., Zhao C.-H., Hu Z.-G. Energy consumption and economic growth: evidence from China at both aggregated and disaggregated levels. Energy Economics 2008, 30:3077-3094.