Abstract
This study offers a novel analytical approach on the relationships between renewable energy consumption, capital, labor force, new firm formation rate, and economic growth. It aims to investigate such causal relationships using different estimation techniques such as the ordinary least squares (OLS) model, dynamic ordinary least squares (DOLS), fully modified ordinary least squares (FMOLS), and canonical cointegrating regression (CCR), along with necessary condition analysis (NCA), which are applied to data for France over the period 1987–2017. Our results show that all necessary conditions yield outcomes ranging from small- to large-sized effects on economic development. The French government should readdress its efforts towards encouraging more beneficial investments in renewable energy consumption. This study opens up new insights for policymakers to maintain environmental protection and ensure sustainable economic growth. Finally, the use of NCA reduces complexity and allows a better understanding of the relationships involved.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
