The Effect of Renewable Energy Consumption on Economic Stability: Panel Data Analysis on Selected Countries

Authors

DOI:

https://doi.org/10.5195/emaj.2020.201

Keywords:

Energy, Renewable Energy, Non-Renewable Energy, Economic Stability, Political Stability

Abstract

This study aims to investigate the effect of renewable energy consumption on economic stability. In this regard, covering the period of 1990-2016, data of 35 countries, 19 of which are developed and 16 of which are developing, were used. The cointegration analysis results reveal that, there is a long-term relationship between the two variables in developed and developing countries. According to panel coefficient estimators, the effect of renewable energy consumption on economic stability is positive and statistically meaningful in Germany, Denmark, Italy, Switzerland, and Sweden, which are developed countries, and also in Egypt, Turkey, Taiwan, Pakistan, and Indonesia, which are developing countries. However, the effect is negative and significant in contrast to expectations in England and Belgium, which are developed countries, and in India and the Philippines, which are developing countries.

Author Biographies

Tunahan Hacıimamoğlu, Recep Tayyip Erdoğan University

Faculty of Economics and Administrative Sciences / 
Economic Development and International Economics

Ali Rıza Sandalcılar, Recep Tayyip Erdoğan University

Faculty of Economics and Administrative Sciences / 
Economic Development and International Economics

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Published

2020-09-23

Issue

Vol. 10 No. 1 (2020)

Section

Articles

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