The purpose of this study was to investigate the relationship between gross domestic product (GDP) growth and renewable and non-renewable energy consumption in 82 developing…
Abstract
Purpose
The purpose of this study was to investigate the relationship between gross domestic product (GDP) growth and renewable and non-renewable energy consumption in 82 developing countries categorized by region.
Design/methodology/approach
To achieve the goal of this study, the panel model was used taking the period 1990-2009.
Findings
The Kao co-integration test results showed that both renewable and non-renewable energy consumption had a long-running relationship with all the economic sectors in all regions. Moreover, the FMOLS revealed that the renewable and non-renewable energy consumption had a long-run positive relationship with the economic sectors. However, the results also revealed that non-renewable energy consumption has a more significant effect on the economic sectors than the renewable energy consumption. In addition, the Granger causality showed the same results, that the causal relationship between the economic sectors and non-renewable energy consumption is more significant than the causal relationship between the economic sectors and renewable energy.
Practical implications
The reason behind these results is that these regions still depend on fossil fuels to promote their economic growth. Fossil fuels basically contribute more than 80 per cent of their total energy consumption. Thus, the study recommends the developing countries to increase their investment on renewable energy projects to increase the share of the renewable energy of total energy consumption.
Originality/value
This study is considered different from all the previous studies because it will investigate the disaggregate relationship between GDP and energy consumption (renewable and non-renewable) in East Asia and Pacific, Europe and Central Asia, Latin America and the Caribbean, Middle East and North Africa, South Asia and the Sub-Saharan African developing countries.
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Usama Al-mulali and Abdul Hakim Mohammed
– This paper aims to investigate the relationship between gross domestic product (GDP) by sector and energy consumption by type in 16 emerging countries.
Abstract
Purpose
This paper aims to investigate the relationship between gross domestic product (GDP) by sector and energy consumption by type in 16 emerging countries.
Design/methodology/approach
The panel model was utilized taking the period 1980-2010.
Findings
The results revealed that GDP by sector and energy consumption by type are cointegrated. Moreover, the Granger causality concluded a bi-directional causal relationship between oil, natural gas and renewable energy consumption and the value of the manufacturing, industrial and services sector. Furthermore, a bi-directional causal relationship was also found between coal consumption and the value of the services sector. Furthermore, a one-way causal relationship was found from oil consumption to the value of the agriculture sector, the value of the agriculture sector to coal consumption, and coal consumption to the value of the manufacturing and the industrial sectors.
Practical implications
This study recommended that these countries should increase their renewable energy consumption to achieve their GDP growth.
Originality/value
This study is different from the previous studies, as it disaggregated the GDP into four sectors, namely, agriculture, manufacturing, industrial and the services sector. In addition, this study will disaggregate energy consumption into oil consumption, gas consumption, coal consumption and electricity consumption.
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Usama Al-mulali and Che Normee Che Sab
– This study aims to investigate the impact of total primary energy consumption and CO2 emissions on the economic development in 16 emerging countries.
Abstract
Purpose
This study aims to investigate the impact of total primary energy consumption and CO2 emissions on the economic development in 16 emerging countries.
Design/methodology/approach
The panel model was used taking the period 1980-2008.
Findings
The results showed that a long-run relationship is present between total primary energy consumption, CO2 emission, and economic development in the countries under investigation. It was also found that both total primary energy consumption have a positive causal relationship with the economic development and other economic aspects playing an important role in achieving high economic performance with the consequence of higher pollution.
Practical implications
The main recommendation of this study is to increase their investment and government spending on green energy projects to increase the share of green energy out of their total energy consumption. This can be considered a good solution for their energy woes.
Originality/value
Different from the previous studies, it was also found that total primary energy consumption have a positive causal relationship with the economic development and other economic aspects playing an important role in achieving high economic performance with the consequence of higher pollution. In addition, there are a number of countries that had not investigated before.