Renewable and non-renewable electricity consumption, environmental degradation and economic development: Evidence from Mediterranean countries

By Fateh Bélaïd, M. Zrelli. Energy Policy, 2019

283 citations recorded by the source corpus.

In this article, we develop an empirical model to investigate the causal link amid renewable and non-renewable electricity consumption, GDP and carbon emissions by using a panel of 9 Mediterranean countries over the period 1980–2014. Using the PMG panel ARDL and panel econometric technics, heterogeneity and cross-sectional dependence among the panel were considered to explore the long and short-run dynamic relationships as well as the validity of a proposed model. The results provide panel empirical evidence that there is short-term bidirectional causality between GDP, renewable electricity consumption and CO2 emissions and between non-renewable electricity consumption, GDP and renewable electricity consumption. For the long-term causal relationship, the result indicates that there is bidirectional causality between non-renewable electricity consumption and CO2 emissions. However, there is evidence of unidirectional causal relationships from GDP to CO2 emissions and non-renewable electricity consumption and from renewable electricity consumption to CO2 emissions. The findings imply that non-renewable electricity consumption and economic growth stimulate CO2 emissions in southern and northern Mediterranean countries, while renewable electricity reduces them. This empirical evidence suggests that expansion of renewable energy sources is a viable strategy for addressing energy security and reducing carbon emissions to protect the environment for future generations.

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

View Paper: https://www.semanticscholar.org/paper/97a5c717949d0ff63b2828582937a9088ad2c203

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In Economics and Econometrics

1. Mehmet Pinar
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Citations in the corpus

• Renewable energy consumption and economic growth nexus: Evidence from a threshold model (2020, background): “Similar to few studies that considered the potential crosssection dependence when examining the link between energy consumption and economic growth (see e.g., Cowan et al., 2014; Osman et al., 2016; Belaïd and Zrelli, 2019), before proceeding to”