Original scientific paper
https://doi.org/10.1080/1331677X.2020.1865180
Renewable electricity generation and economic growth nexus in developing countries: An ARDL approach
Anam Azam
Muhammad Rafiq
Muhammad Shafique
Jiahai Yuan
Abstract
This study examines the short- and long-run of the causal correlation between economic growth (G.R.) and renewable electricity
generation sources for a panel of 25 developing nations over the
period 1990–2017. To do so, second-generation cross-sectional
dependence (C.D.) test Im, K.S., Pesaran and Augmented DickeyFuller panel unit root test, panel cointegration, autoregressive distributed lag in view of the pooled mean group estimation and
panel heterogeneous Dumitrescu Hurlin (2012) causality methods
are utilised. The main findings indicate that the positive and significant impact of renewable electricity generation on G.R. shows
that renewable electricity generation sources stimulate G.R. in the
long run for these selected countries. It is also demonstrated that
there is bidirectional causality between renewable electricity generation and G.R. both in the short run and long run. Based on our
findings, the feedback hypothesis is valid for developing countries.
Keywords
economic growth (G.R.); renewable; panel data; sustainability
Hrčak ID:
301365
URI
Publication date:
31.12.2021.
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