Today, the increasing use of fossil fuels, energy security, concerns and the great importance of achieving sustainable economic growth underscore the urgent need to transition to…
Abstract
Purpose
Today, the increasing use of fossil fuels, energy security, concerns and the great importance of achieving sustainable economic growth underscore the urgent need to transition to a green energy system as soon as possible. To shed light on the relationship between the economy and renewable energy, this study assesses the nonlinear relationship between renewable energy consumption and economic growth for 24 OECD countries between 1990 and 2015.
Design/methodology/approach
The authors apply two nonlinear models: panel threshold regression (PTR) and panel smooth transition regression (PSTR).
Findings
The results show that the positive effect of renewable energy consumption on economic growth is conditional. On the one hand, the results of the nonlinear PTR model yielded a threshold value for renewable energy consumption of about 251.17. Below this threshold, the authors find a negative impact of renewable energy consumption on economic growth. However, above this threshold, renewable energy consumption becomes a favorable source of economic growth. Using the nonlinear PSTR model based on the gamma transition parameter of 2.014, the transition from low renewable energy consumption regime to higher is abrupt.
Originality/value
Referring to previous studies analyzing linear causality between renewable energy and economic growth, most of the results show various mixed and non-stable effects over the study period. The contributions of this study consist in conduct a series of empirical tests of the nonlinear effects of renewable energy use on economic growth using two nonlinear approaches such as the PTR and PSTR models. If the authors show that such a relationship is nonlinear, it is essential to check whether the transition from one weak regime to another strong regime is abrupt or smooth, using the PSTR approach.
Details
Keywords
This paper aims to evaluate the credit risk of Islamic and conventional banks and its relationship with the capital in 14 countries of the Middle East and North Africa region. To…
Abstract
Purpose
This paper aims to evaluate the credit risk of Islamic and conventional banks and its relationship with the capital in 14 countries of the Middle East and North Africa region. To do this, a sample of 58 Islamic banks and 89 conventional banks during the 2005-2015 period was used.
Design/methodology/approach
In fact to measure the difference between Islamic banks and their conventional counterparts in terms of credit risk, the generalized method of moments is used.
Findings
The results showed that the conventional model has a higher credit risk than the Islamic one. These results also showed that the larger an Islamic bank is, the higher its credit risk will be to get closer to that of conventional banks.
Originality/value
This investigation is based on actual data for each bank available in the Bank-Scope database provided by the Van Dijik office (2013). It should be noted that almost all the recent empirical studies interested in the world banking sector essentially use this database.