Green technology in emerging countries: assessing the interplay of ICT trade and renewable energy consumption in reducing environmental pollution

Renewable and non-renewable energy consumption in Bangladesh: The relative influencing profiles of economic factors, urbanization, physical infrastructure and institutional quality

To date, a sufficient number of studies have dealt with the effect of financial development on energy consumption. Yet, most of these studies have neglected diversification between renewable and non-renewable energy consumption. In fact, financial development may affect renewable energy consumption differently than non-renewable energy consumption. This is because renewable energy production necessitates high-cost investments. Therefore, the main objective of this study is to estimate the impact of financial development on renewable and non-renewable energy consumption in 37 OECD countries by employing the one-step system generalized method of moments (GMM) for the period 2002–2015. The findings statistically proved that financial development is positively linked with renewable energy consumption, but it is not related to non-renewable energy consumption. This paper also confirmed the existence of a negative correlation between the openness index and renewable energy consumption with non-renewable energy consumption. Intuitively, it was expected that renewable energy production engages in high-cost investments compared to non-renewable energy production. Thus, renewable energy consumption is more responsive to a solid and well-structured financial market than non-renewable energy consumption.

Chapter 17 - Is there an asymmetric causality between renewable energy and energy consumption in BIC countries?

Renewable energy production and consumption has a triggering effect on the components associated with the energy sector. This study aims to analyze the effects of renewable energy generation and consumption on economic growth in Türkiye for the period 1990-2020 based on annual data. For the analyses in the study, the vector autoregression model (VAR) and Johansen cointegration test, vector error correction, and Granger causality are used for the data of renewable energy consumption (REC, percentage of total final energy consumption), renewable electricity generation (REG, per capita electricity generation from renewables), and economic growth (GDP constant 2010 US$). According to the findings from the study, no causality was found from production to gross domestic product from renewable energy consumption in the short run, but causality from renewable energy consumption to gross domestic product was found. In the long run, it can be said that renewable energy consumption is not the cause of gross domestic product, but gross product is the cause of renewable energy consumption.

PurposeThe purpose of this paper is to examine the nexus among economic growth, nonrenewable energy consumption and renewable energy consumption in India over the period 1971-2017.Design/methodology/approachThis study uses nonlinear autoregressive distributed lags model and asymmetric causality test to explore nonlinearities in the dynamic interaction among the variables.FindingsThe findings indicate that the impact of nonrenewable energy consumption and renewable energy consumption on the economic growth is asymmetric in both long run and short run. In long run, a positive shock in nonrenewable energy consumption and renewable energy consumption exerts a positive impact on growth. However, the negative shocks in nonrenewable energy consumption produce larger negative effects on the growth. The results of nonlinear causality test indicate a unidirectional causality from nonrenewable energy consumption and renewable energy consumption to economic growth and thus support “growth hypothesis” in context of India.Practical implicationsThe findings imply that policy measures to discourage nonrenewable energy consumption may produce deflationary effects on economic growth in India. Further, the findings demonstrate the potential role of renewable energy consumption in promoting economic growth.Originality/valueTo the best of the authors’ knowledge, this study is the first attempt to explore nonlinearities in the relationship between economic growth and the components of energy consumption in terms of renewable and nonrenewable energy consumption.

China's renewable energy consumption was 6.37 EJ in 2018, making it the world's largest renewable energy consumer. Exploring the economic and social driving factors behind the dynamic evolution of renewable energy consumption in China not only serve China better development of renewable energy, but also has implications for other developing countries. Existing research was limited to apparent consumption based on static geographic boundaries, and ignored the embodied renewable energy consumption in trade, although China is the largest trade exporter and the second trade importer. This work extended the existing research to account production-based and consumption-based renewable energy consumption applying the multi-region input-output model and analyzed the embodied renewable energy flows in China's international trade. Furthermore, this paper adopted structural decomposition analysis to explore the driving factors of renewable energy production and consumption from consumption coefficient, production structure and final demand. The results show that, firstly, as the net embodied renewable energy importer, China's the renewable energy consumption on the production-based increased from 1.08 E+ 06 TJ to 6.79 E+ 06 TJ, and on the consumption-based increased from 1.08 E+ 06 TJ to 7.13 E+ 06 TJ. Secondly, major of embodied renewable energy came from China's trade with developed economies but the pattern of embodied renewable energy was undergoing change. Thirdly, the decomposition results showed that energy structure and final consumption were the leading drivers in China's renewable energy consumption growth. For further expansion of its renewable energy, policymaking should pay more attention on the adjustment and optimization of energy consumption structure and industrial structure to promote production side from sustainable consumption pattern.

The study investigates the impact of renewable and non-renewable energy consumption on economic growth in the Middle East and North Africa from 1996 to 2023. The research uses the threshold model methodology to determine the relationship between energy consumption and economic growth, based on GDP, non-renewable energy consumption, and renewable energy consumption. The findings show that the influence of the new energy transition threshold on economic growth depends on the levels of gross domestic product, renewable energy consumption, and fossil fuel energy consumption. The study concludes that the impact of renewable and non-renewable energy consumption on economic growth is non-linear, varying with levels of these factors. The evidence suggests that the behaviours of renewable and nonrenewable energies are similar, which may indicate that the economy is at a single structural level and that structural transformation has not been sufficiently robust. The interaction between renewable and non-renewable energy and economic growth is not restricted to a specific threshold, as each threshold level represents different dimensions of the economic dynamics of the countries. In brief, Heavy reliance on traditional energy sources will result in significant economic resistance, which will negatively impact economic growth. However, with improved renewable energy infrastructure and reduced reliance on traditional or non-renewable energy, this negative impact will transform into a positive effect on long-term economic growth.

In the past decades, renewable energy consumption has grown considerably because of environmental degradation caused by non-renewable energy consumption. This research aims to find the causal link between renewable and non-renewable energy consumption, human capital, and non-renewable energy price for the 53 most renewable energy-consuming countries worldwide (hydroelectric) during the period 1990-2017. We use data collected from the World Bank ( http://data.worldbank.org/data-catalog/world-development-indicators , 2018) and Statistical Review of World Energy ( https://www.bp.com/ , 2018). We test simultaneously two types of regressions in order to measure the degree of elasticity of the two types of energy by using econometric techniques for panel data. The results of the GLS models indicate that human capital has a stronger significant effect on renewable energy consumption at the global level, in the middle high-income countries and low-middle income countries, compared with non-renewable energy consumption. Besides, at the global level, there is a positive and statistically significant relationship between the non-renewable energy price and the two types of energy consumption. There is a long-run consumption of both types of energy. On the other hand, the one-way relationship between human capital and non-renewable energy price and renewable energy consumption is stronger than the relationship with non-renewable energy consumption. The policy implications derived from this study should be designed to promote human capital development in order to promote renewable energy consumption and increase the investment in renewable energy sources to guarantee their access to lower prices that reduce non-renewable energy consumption.

This study investigates the impacts of income, (renewable and non-renewable) energy consumption, trade, and financial development on carbon dioxide emissions in Turkey for the 1965-2015 period by employing thenon-linear autoregressive distributed lag method. Results show that non-renewable and renewable energy consumption, and trade openness have asymmetric impacts on pollution in long-run, while only renewable energy consumption has asymmetric impact on emissions in short-run. Results further reveal that the Environmental Kuznets Curve hypothesis is not valid in Turkey. Moreover, both financial development and trade positively affect emissions. Additionally, in long-run, positive shocks in renewable and non-renewable energy consumption increase emissions, but the impact of renewable energy consumption is infinitesimally small compared to the impact of non-renewable energy consumption. However, negative shocks in renewable energy consumption increase emissions, whereas negative developments in non-renewable energy consumption decrease emissions. Further, in short-run, positive developments in renewable energy consumptiondecrease emissions, and negative developments in non-renewable energy consumption have the same influence on emissions. In accordance with the findings, some policy suggestions are proposed.

In this study, we use a time-varying parameter vector autoregression (TVP-VAR) in conjunction with the extended joint connectedness approach to examine the influences of the economic globalization measured by foreign direct investment (FDI) as well as trade openness (TO), on renewable and non-renewable energy consumption, by characterizing the connectedness of these variables, from 1987 to 2020 in Vietnam. Our results demonstrate that abolishing the state monopoly in foreign trade influences the system-wide dynamic connectedness of trade openness, which peaked in 1989. Net total directional connectedness of FDI and energy consumption suggests that both the consumption of renewable and non-renewable energy consistently act as net contagion shock receivers, and FDI is a critical net transmitter the whole time. Trade openness behaves consistently as a critical net shock transmitter in 1989 but turned into an essential net receiver from 1990 to 2020. In a system with trade openness, the consumption of non-renewable energy consistently acts as a net contagion shock receiver, and renewable energy consumption is a critical net transmitter in the whole sample. Pairwise connectedness reveals that FDI consistently appears as a shock transmitter to renewable and non-renewable energy consumption. Trade openness could be either a transmitter or a receiver of shock from non-renewable energy, depending on the period, and is a net receiver of shocks from renewable energy consumption during our sample. The findings of this paper are critical for Vietnam's government to make a greater contribution to the expansion of global commerce and a sustainable environment.

One of the strategic objectives of China is to increase renewable energy consumption by reducing non-renewable energy consumption. This motivates us to carefully investigate the asymmetric effects of financial deepening on renewable and non-renewable energy consumption for China, using annual data from 1990 to 2019. The results show that in China, a positive shock in bank deposits and broad money has a significant increasing effect on renewable energy consumption, while a negative shock in bank deposits and broad money has also a significant increasing effect on renewable energy consumption in the long-run. Moreover, positive change in bank deposits and broad money has an inverse impact on non-renewable energy consumption, while negative change has stimulating non-renewable energy consumption in long run. Thus, government and policymaker's policies aimed at promoting financial deepening in China must be persistent and sustainable to foster renewable energy consumption.

In the extant literature, there are numerous discussions on China’s environmental sustainability. However, few scholars have considered renewable energy consumption and trade policy simultaneously to debate environmental sustainability. Therefore, this paper attempts to examine how renewable and non-renewable energy consumption, bio-capacity, economic growth, and trade policy dynamically affect the ecological footprint (a proxy for environmental sustainability). Using the data from 1971 to 2017 and employing the auto-regressive distributed lag model to perform an empirical analysis, the results demonstrate that renewable energy consumption and trade policy are conducive to environmental sustainability because of their negative impacts on the ecological footprint. However, the results also indicate that bio-capacity, non-renewable energy consumption, and economic growth are putting increasing pressure on environmental sustainability due to their positive impacts on the ecological footprint. Moreover, to determine the direction of causality between the highlighted variables, the Yoda-Yamamoto causality test was conducted. The results suggest a two-way causal relationship between renewable energy consumption and ecological footprint, non-renewable energy consumption and ecological footprint, and economic growth and ecological footprint. Conversely, the results also suggest a one-way causal relationship running from bio-capacity and trade policy to the ecological footprint.

Symmetric and asymmetric impact of economic growth, capital formation, renewable and non-renewable energy consumption on environment in OECD countries

We examine the relationship between renewable and non-renewable energy consumption and economic growth in the United States. While the regime-dependent Granger causality test results for the non-renewable energy consumption and economic growth suggest bi-directional causality in both regimes, we cannot validate any causality between renewable energy consumption and economic growth. The US meets its energy demand from non-renewable sources; as such, renewable energy consumption does not seem to affect economic growth. Given the efficiency and productivity of renewable energy investments, we conclude that it is worthwhile to consider renewable energy inputs to replace fossil fuels given potential benefits in terms of global warming and climate change concerns. In this regard, increasing the R&D investments in the renewable energy sectors, increases in productivity and profitability of renewable energy investments are likely to accrue benefits in the long run.

Effective long-term planning becomes essential as Africa strives to expedite its shift to sustainable energy systems and comprehends how energy consumption and economic growth interact. This study examines the effects of total energy consumption, renewable energy consumption, and non-renewable energy consumption on economic growth in eight regional economic communities in Africa—AMU, CEN-SAD, COMESA, EAC, ECCAS, ECOWAS, IGAD, and SADC—between 1996 and 2022. Using panel data from the African regions, the Mean Group and Pooled Mean Group were utilised where applicable as indicated by the Hausman Test. The findings reveal that while both renewable and non-renewable energy consumption influence economic growth, their impacts vary across regions. Total energy consumption has a negative impact on economic growth in AMU, CEN-SAD, COMESA, ECCAS, and SADC blocs, but a positive impact on economic growth in ECOWAS and IGAD blocs, and an insignificant impact on the EAC bloc. While non-renewable energy consumption has a negative impact on economic growth in the AMU, COMESA, ECCAS, IGAD, and SADC blocs and a positive impact on economic growth in the EAC bloc, renewable energy consumption has a positive impact on economic growth in the AMU, COMESA, ECCAS, IGAD, and SADC blocs. These findings highlight the necessity of unique, region-specific energy planning approaches that give system resilience and investments in renewable energy top priority. Specifically, policymakers should expand energy access to underserved areas for the blocs experiencing positive impact of energy consumption, while those blocs experiencing negative impact should put in place policies to reduce energy waste and control energy prices to avoid volatility.