From nonrenewable to renewable energy and its impact on economic growth: The role of research & development expenditures in Asia-Pacific Economic Cooperation countries

By Muhammad Wasif Zafar, Muhammad Shahbaz, Fujun Hou, Avik Sinha. Journal of Cleaner Production, 2019

517 citations recorded by the source corpus.

Abstract This study disaggregates energy, i.e. non-renewable and renewable energy consumption, and investigates its effect on economic growth. The period of 1990–2015 is used to examine Asia-Pacific Economic Cooperation (APEC) countries. This paper determines the cross-sectional dependence and employs a second-generation panel unit root test for precise estimation. Westerlund cointegration test is used to examine the long-run equilibrium relationship between the variables and confirm the presence of cointegration in the long run. The Continuously Updated Fully Modified Ordinary Least Square (CUP-FM) approaches are applied to investigate long-term output elasticities between the variables. The results show the stimulating role of energy (renewable and nonrenewable) consumption in economic growth. Research and development expenditures and trade openness have a positive effect on economic growth. Moreover, the time series individual country analysis also confirms that renewable energy has a positive impact on economic growth. The heterogenous causality analysis reveals the feedback effect, i.e., bidirectional causal associations among economic growth, renewable energy consumption, and nonrenewable energy consumption. This empirical evidence suggests that countries should increase investment in renewable energy sectors and plan for development in renewable energy for sustainable energy growth.

Subfields: Economics and Econometrics, Pollution, Renewable Energy, Sustainability and the Environment

View Paper: https://www.semanticscholar.org/paper/4bec5bc23c59f5d69083f1e8ad36b2cdd30206d0

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Citations in the corpus

How renewable energy consumption contribute to environmental quality? The role of education in OECD countries (2020, background): “Therefore, these nations might resort to their 9 pool of natural resources for fulfilling their energy demand (Mantovani et al., 2017; Zafar et al., 2019).”
Revisiting the role of tourism and globalization in environmental degradation in China: Fresh insights from the quantile ARDL approach (2020, background): “Zaidi et al. (2019) inspected the nexus among financial development, globalization, and CO2 emissions in Asia Pacific Economic Cooperation (APEC) nations from 1990 to 2016.”
The role of information and communication technology in encountering environmental degradation: Proposing an SDG framework for the BRICS countries (2021, background): “Prevalence of this economic growth pattern has resulted in the consistent rise in the CO2 emissions in these countries, and this has led the policymakers to initiate transformations in the energy usage pattern (Sinha and Sen, 2016; Zafar et al., 2019).”
Growth impact of transition from non-renewable to renewable energy in the EU: The role of research and development expenditure (2020, methodology): “This study like other similar literature [16], adopt the Dumitrescu and Hurlin [31] heterogeneous panel causality test to discover the causal associations among the model variables.”
Decomposing Scale and Technique Effects of Financial Development and Foreign Direct Investment on Renewable Energy Consumption (2022, result): “This segment of empirical findings falls in similar lines with Zafar et al. (2019) in case of Asia-Pacific Economic Cooperation (APEC) countries.”
Natural resources abundance, economic globalization, and carbon emissions: Advancing sustainable development agenda (2021, methodology): “This study applied the Cup-FM introduced by Bai and Kao (2006) and the Cup-BC estimation method for robustness Bai et al. (2009) by following recent studies of (Ahmed et al., 2020b; Ulucak & Bilgili, 2018; Zafar et al., 2019a).”