Document Type : Research Paper

Authors

• Mohamad Reza Salmani Bishak ¹
• pegah gorbanpour ²

¹ Faculty Member of Faculty of Economics and Management, Tabriz University

² Department of Economics, University of Tabriz .Tabriz, . Iran

Abstract

Renewable energy is a crucial alternative energy source in terms of sustainable growth and climate change. This paper analyzes the causal relationship between renewable energy consumption and economic growth in 26 developing countries over the period 1990–2020. The study employs the bootstrap panel causality test developed by Konya (2006) to account for cross-sectional dependence. Konya’s (2006) method is based on seemingly unrelated regressions (SUR) and Wald tests with country-specific bootstrap critical values.

The results indicate that the causal relationship between renewable energy consumption and economic growth varies across the examined countries, manifesting both symmetric and asymmetric patterns depending on each country's specific conditions. In some countries, evidence of bidirectional causality between these two variables was observed, while in others, a unidirectional causal relationship was confirmed, either from renewable energy consumption to economic growth or vice versa. Moreover, the findings reveal that relying on aggregated data could alter the conclusions, highlighting the necessity of conducting causality analysis at the country level. These findings emphasize the impact of renewable energy policies on the economic growth of developing countries and provide valuable insights for policymakers in formulating sustainable energy strategies.

Keywords

• Renewable energy
• Asymmetric causality
• Economic growth
• Bootstrapping causality
• developing countries

Main Subjects

• • مطالعات اقتصادی مرتبط با حامل‌های انرژی (فسیلی، تجدیدپذیر و برق)