Dynamics affecting renewable energy: A panel quantile regression approach

Abstract

The effective use of energy resources, energy production and consumption are accepted as one of the most basic indicators of development in recent years. It has become important to use these energy resources in an environmentally friendly manner and have a positive and efficient effect on the economy. The relationship between renewable energy consumption (LREC) and economic factors such as growth rate of GDP per capita (LGDP)), fixed capital investment (LFCI), total labor (LTL), total amount of waste per capita (LWCA) is examined in this study. Data on those variables are collected for the period of 2012-2020 for OECD countries. A panel quantile regression approach method is employed to examine the association between renewable energy consumption (REC) and economic factors. The effects of independent variables on renewable consumption have been interpreted depending on the estimation results obtained in the analysis. Firstly, the panel unit root tests are determined for stationarity. As a result, a panel quantile approach is adopted. The results of the analysis show that all economic variables used in the model have a statistically significant effect on renewable energy consumption in the last two quantiles.