THE CAUSAL LINKAGES between RENEWABLE ENERGY CONSUMPTION, ECONOMIC GROWTH, OIL PRICES and CO2 EMISSIONS in SELECTED OECD COUNTRIES

Abstract

Purpose: It is aimed to examine the relationship between Renewable Energy Consumption (REN), Economic Growth (GDP), Oil Prices (OP), and CO2 emissions (CO2) in selected OECD countries by using the data for the period 1980-2014.Methodology: In the study, Kónya Panel Bootstrap causality method is utilized to determine the relationship between variables.Findings: Firstly, there is a bidirectional causality relationship between REN and CO2 for Canada and Italy; there is a one-way linkage from REN to CO2 in Greece and Ireland, while there is unidirectional causality from CO2 to REN in Austria, Switzerland, and United States. Secondly, there exists a bidirectional causality relationship between the REN and GDP in Italy. In contrast, there is a one-way causality linkage from GDP to REN in Switzerland and Belgium and from REN to GDP in the Netherlands. Thirdly, it is found that there is a bidirectional causality relationship between REN and OP in the United States; there is a one-way causality linkage from OP to REN in Austria, Greece, Italy, Portugal, Spain, and Switzerland, from REN to OP in Japan.Originality: The study has originality in that it examines the relationship among the variables for the selected OECD countries and through Kónya causality method.