Abstract
This study uses data from seven countries with high energy consumption levels in 1997–2016 (i.e., the US, China, Japan, Canada, South Korea, Germany, and France) to establish a panel threshold model and analyze the multiple threshold effects of new energy consumption transformation on economic growth. Research results show the non-linear impact of new energy consumption transformation on economic growth. On the one hand, the transformation of new energy consumption will occasionally bring economic costs, thereby resulting in a negative impact on economic growth. On the other hand, economic cost occasionally disappears, thereby resulting in the positive impact of the transformation of new energy consumption on economic growth. This study proposes that economic cost is affected by the levels of research and development (R&D), economic development, and traditional energy dependence, therefore, we use these three variables as threshold variables. Threshold variable is essential in a panel threshold model. The behavioral varies of model can be predicted when threshold variable is at different ranges of levels. In other words, the behavior of panel threshold model may change as the level of threshold variable changes. In particular, when the R&D level is used as a threshold variable, the impact of new energy consumption transformation on economic growth will change from negative to positive as the level of R&D increases. We present a similar conclusion when the level of economic development is used as a threshold variable. However, when the level of traditional energy dependence is used as the threshold variable, the impact of new energy consumption transformation on economic growth will change from positive to negative as the level of traditional energy dependence increases.
Highlights
New energy consumption is the amount of new energy or power used
The results show that the threshold effects of the transformation of new energy consumption on economic growth is caused by the level of research and development (R&D), economic development, and traditional energy dependence
The overall conclusion is that: the impact of new energy consumption transformation on economic growth is non-linear and it will change with the levels of R&D, economic development, and traditional energy dependence are at different ranges of levels
Summary
New energy consumption is the amount of new energy or power used. The traditional energy consumption structure is mainly based on fossil energy. The following questions should be answered: Is the impact of new new energy consumption on economic growth. Answering these questions can provide scientific of new energy consumption transformation on economic growth positive or negative? Answering these questions can provide consumption transformation on the economy and achieving the goal of new energy consumption scientific recommendations for better development of new energy, avoiding the adverse effects of share in the Paris Agreement with minimal economic costs.
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
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.
