The renewable energy and economic growth nexus in Black Sea and Balkan countries

Koçak E., Sarkgunesi A.

ENERGY POLICY, vol.100, pp.51-57, 2017 (SCI-Expanded) identifier identifier

  • Publication Type: Article / Article
  • Volume: 100
  • Publication Date: 2017
  • Doi Number: 10.1016/j.enpol.2016.10.007
  • Journal Name: ENERGY POLICY
  • Journal Indexes: Science Citation Index Expanded (SCI-EXPANDED), Social Sciences Citation Index (SSCI), Scopus
  • Page Numbers: pp.51-57
  • Keywords: Renewable energy, Economic growth, Heterogeneous panel causality, Black Sea and Balkan Countries, NONRENEWABLE ENERGY, BIOMASS ENERGY, ELECTRICITY CONSUMPTION, CO2 EMISSIONS, PANEL, CAUSALITY, TESTS, COINTEGRATION, GDP
  • Erciyes University Affiliated: No

Abstract

The aim of this study is to explore the relationship between renewable energy consumption and economic growth within the framework of traditional production function for the period of 1990-2012 in 9 Black Sea and Balkan countries. For this purpose, we use Pedroni (1999, 2004) panel cointegration, Pedroni (2000, 2001) co-integration estimate methods and Dumitrescu and Hurlin (2012) heterogeneous panel causality estimation techniques. The study has concluded that there is a long term balance relationship between renewable energy consumption and economic growth and renewable energy consumption has a positive impact on economic growth. Heterogeneous panel causality analysis results support growth hypothesis in Bulgaria, Greece, Macedonia, Russia and Ukraine; feedback hypothesis in Albania, Georgia and Romania; neutrality hypothesis in Turkey and according to the panel data set including all nine countries the results support feedback hypothesis. With the findings, it was concluded that there is a significant impact of renewable energy consumption on economic growth in Balkan and Black Sea Countries.