Energy Consumption Growth Research Articles

Revisiting the Nexus between Renewable Energy Consumption and Economic Growth in Nigeria: The VECM Approach

The research investigates the effect of renewable energy consumption on economic growth as well as analyzing the dynamic relationship between both variables from 1990 to 2022. Annual secondary data covering the period between 1990 and 2022 were used in the study. Data on real gross domestic product, renewable energy consumption (% of total final energy consumption), gross capital formation (% of GDP), labor force, total and trade (% of GDP) were sourced from World Development Indicator. The study applies Johansen co-integration test and Vector Error Correction Model (VECM) to examine the effect of renewable energy consumption on economic growth and other explanatory variables as well as using pairwise granger causality test to examine the causal relationship between both variables. The empirical evidence revealed long-term relationship between renewable energy consumption and economic growth. Evidence shows that there is no causality either unidirectional or bi-directional between both variables. In short run, renewable energy consumption revealed a significant positive impact on economic growth. This shows that renewable energy may stimulate economic growth, particularly as it has a greater short-term impact on economic growth than capital formation. The key policy implication drawn from the results indicate the need for investment in renewable energy technologies and infrastructure, which can help to increase the availability and affordability of renewable energy, improve workforce development in Nigeria renewable energy sector.

Opportunity or trap - the policy effect of China’s energy quota trading

ABSTRACT This paper assesses the policy effect of the energy quota trading (EQT) policy from the perspectives of energy consumption, economic growth, and energy intensity, based on the panel data of 30 provinces in China from 2006 to 2019. The energy intensity has been decomposed into technical effect and structural effect using the LMDI model. The triple difference method, the corresponding parallel dynamic trend test and the placebo test are employed in this study. The result suggests that the EQT policy is capable of suppressing the growth of energy consumption, and will not dampen economic growth. Moreover, the policy facilitates the decrease of energy intensity in China. The EQT policy has spurred energy technology innovation, improved energy efficiency, and exerted about innovative compensation effects. However, the initial allocation of energy quota is free, thus leading to the structural effect of enterprises converging to high-energy-consumption industries. Compared with the white certificate policy, the EQT policy has some defects in the regulatory mechanism and operating rules. It is imperative for the policymakers to formulate guiding policies when considering the policy shocks of the above low industrialization area on the rapidly developing country.

THE NEXUS BETWEEN MACROECONOMIC INDICATORS AND ELECTRIC CONSUMPTION EFFECT ON ECONOMIC GROWTH IN TURKEY

Currently, energy consumption is an important factor regarding its contribution to economic growth rather than the inputs used for its realization. It is known that economic decision units are linked to energy consumption. Innovation of technologies and the use of technology in production increases the energy demand. Energy is complementary to labor and capital in countries' economic and technological development. 
 The study aims to determine the impact of electricity consumption on economic growth by utilizing selected economic indicators for the period between 1996 and 2022 in Turkey. The study uses the ARDL bounds test approach to analyze the cointegration relationship using economic growth, electricity consumption, foreign direct investment, and general price level data. Short and long term effects have been revealed. It is observed that energy consumption and economic growth have a positive relationship with the same direction in the short and long term. Inflation has a negative impact on energy consumption in the short and long term. In addition, the increase in foreign direct investments in the short term leads to a significant increase in energy consumption in the relevant period in Turkey.

The Effects of Urbanization on Urban Land Green Use Efficiency of Yangtze River Delta Urban Agglomeration: Mechanism from the Technological Innovation

It is urgent and essential to explore the facilitating mechanism of urban land green use efficiency (ULGUE) in promoting the coordinated development of humans and land. In this study, the SBM-DEA model was used to measure ULGUE from 26 cities across the Yangtze River Delta Urban Agglomeration (YRDUA) in China from 2006 to 2019. Desired (eco-friendly) outputs and undesired (non-eco-friendly) green outputs were considered in the selection of ULGUE indicators. This study explored the impact of the mechanism of green, digital, and transportation technological innovation on ULGUE in the process of urbanization by the mediation model. The results showed that urbanization has a positive effect on ULGUE and technological innovation, and for every 1% increase in urbanization, ULGUE increases by 0.048%. The results are still significant after robustness tests. The findings suggest that the improvement of social and economic benefits brought by urbanization in the YRDUA is greater than its negative impact. A mechanistic analysis showed that green, digital, and transportation technological innovation can amplify the positive impact by curbing the growth of energy consumption and alleviating pollution. Therefore, the government should promote ULGUE with technological innovation, construct an ULGUE assessment mechanism, incorporate the promotion of green land use into the planning of targets and incentives for technological innovation, and promote the efficient use of land.

Does private financial development present a trade-off for CO2 emissions reduction in Oman? Evidence from Markov-switching model

ABSTRACT The expansion of the financial sector is often promoted to facilitate economic growth. Nevertheless, the potential implications of financial development on environmental indicators, specifically carbon dioxide (CO2) emissions, have become a subject of concern. This research investigates the impact of financial development on CO2 emissions in Oman, along with other control variables including energy consumption, trade openness, and economic growth, using a Markov switching model. The analysis is conducted for the period from 1989 to 2020 and focuses on two regimes of high and low carbon emissions. The results of the Markov switching model show that energy consumption, gross domestic product (GDP), and private financial development have a significant positive effect on CO2 emissions. Although the study confirms the Kuznets curve, Oman is still in its initial phase. Moreover, our results suggest a higher likelihood of remaining in the high CO2 emissions regime. This underscores the importance for policymakers to carefully weigh the trade-offs associated with fostering financial development, particularly within climate change mitigation endeavors. These findings are highly relevant for policymakers striving to balance economic growth with the reduction of carbon emissions in Oman.

The impact of ICT infrastructure, technological innovation, renewable energy consumption and financial development on carbon dioxide emission in emerging economies: new evidence from Vietnam

PurposeThis study is intended to analyze the impact of information and communication technology (ICT) infrastructure, technological innovation, renewable energy consumption and financial development on carbon dioxide emissions in emerging economies.Design/methodology/approachThe present study adopts the autoregressive distributed lag (ARDL) cointegration technique for the annual data collection of Vietnam from 1990 to 2020.FindingsThe results of the study unveil that renewable energy consumption, the interaction between renewable energy consumption and ICT infrastructure and financial development have significant predictive power for carbon dioxide emissions. In the long term, renewable energy consumption, export and population growth reduce CO2 emissions, whereas the interaction between renewable energy consumption and ICT infrastructure and financial development increases CO2 emissions, while ICT infrastructure does not affect emissions. In the short run, changes in ICT infrastructure contribute to carbon dioxide emissions in Vietnam. In addition, changes in renewable energy consumption, financial development, the interaction between ICT infrastructure and renewable energy consumption and population growth have a significant effect on CO2 emissions. Notably, technological innovation has no impact on CO2 emissions in both the short and long run.Originality/valueThe current study provides new insights into the environmental effects of ICT infrastructure, technological innovation, renewable energy consumption and financial development. The interaction between renewable energy consumption and ICT infrastructure has a significant effect on carbon dioxide emissions. The paper suggests important implications for setting long-run policies to boost the effects of financial development, renewable energy consumption and ICT infrastructure on environmental quality in emerging countries like Vietnam in the coming time.

Relationship between Energy and Economic Growth: Evidence from a Panel Nonlinear ARDL Model

In this article, we study the heterogeneous relationship among energy consumption and economic growth by incorporation gross fixed capital formation, foreign direct investment, international trade and finance development as control variables in a selected sample of 11 countries of the Middle East and North Africa over the period 1980-2020 using a panel nonlinear autoregressive distributed lag model. Empirical results show the presence of an asymmetric long run relationship between energy consumption and economic growth in the group of countries. The Pooled Mean Group estimates indicate that positive and negative changes in energy consumption have positive and significant effects on output growth in the long term, whereas both Mean Group and Difference Fixed Effect estimates report that only negative changes in energy consumption have positive and significant effect on long-term economic growth in the selected sample of countries. In addition, the short run individual effects of energy use on economic growth are positive and significant for only three countries (Jordan, Saudi Arabia, and Tunisia). These results are very important for the design of energy policies and sustainable economic growth. Energy-saving policies are suitable for long-run economic growth for the entire sample, while they are only suitable for eight countries out of eleven in the short-run.

High-Technology Exports, Foreign Direct Investment, Renewable Energy Consumption and Economic Growth: Evidence from the United Arab Emirates

Various attempts have been made to undercover the relationship between the UAE’s economic growth, FDI, and renewable energy, with inadequate focus on the role of high technology exports in the UAE. This paper, therefore, examines the short and long-term relationship between high-technology exports, foreign direct investment, renewable energy, and economic growth in the UAE for the period 1991-2020. For this purpose, the autoregressive distributed lag bounds testing approach to cointegration has been employed in this study. The short and long-run empirics reveal a positive and significant relationship between high technology exports and the UAE’s economic growth. Conversely, a significant negative relationship exists between renewable energy consumption and economic growth. Among various important findings, the long-run causality results show a unidirectional causality exists from high-tech exports to the UAE’s economic growth. Further, a bi-directional causality exists between FDI and high-tech exports, that in turn promotes economic growth of the UAE. Based on the overall results, the study provides important policy recommendations.

Retraction Note: The role of energy consumption and economic growth on the ecological environment in ASEAN countries.

Retraction Note: The role of energy consumption and economic growth on the ecological environment in ASEAN countries.

Construction of a Climate Early Warning System: Predicting Future Temperatures and Climate Security Using BiLSTM

In light of the worsening global climate, providing predictive models for surface temperature and energy consumption is crucial for formulating effective climate action strategies. Initially, a Bi-directional Long Short-Term Memory (BiLSTM) network model is established to predict the maximum surface temperatures over the next century, with the Seasonal AutoRegressive Integrated Moving Average (SARIMA) model serving as a benchmark. To assess the risk levels of climate security, the k-means clustering algorithm is utilized to classify the growth rates of carbon dioxide emissions, enabling the construction of a three-tier climate security early warning index. Subsequently, a hybrid classification model based on Support Vector Machine (SVM) and Random Forest (RF) takes the energy consumption growth rates as inputs and the warning indices as outputs to construct a climate security early warning system. The BiLSTM model is employed to predict the energy consumption growth rates for the upcoming decade, and these rates are input into the SVM-RF model to forecast future warning levels. The study demonstrates that the model can effectively predict the maximum surface temperatures and provide a three-tier safety warning system for future climate risk management. The intent of this research is to offer a novel tool for global climate prevention and to deliver practical application value to policymakers in finance, energy, and environmental sectors.

Dynamic role of clean energy and sustainable economic growth in coastal region: Novel observations from China

China's coastal region is the major geographical unit for the future development of China's industrial sector. The transformation of basic structure to high-class development in China's coastal places is a significant tool for promoting the changes related to quality, power and efficiency in regional economic development. In the 21st century, environmental and energy issues have increased worldwide, and challenges related to environmental pollution, energy crises, and ecological imbalances have emerged. To climate change and energy utilization, the sustainable progress of clean energy is the new route of future energy development. Based on China's non-polluting energy growth process in the last ten years, this article explores China's clean/green energy policies and economic growth development plans. Clean energy utilization is crucial for sustainable development in the context of high-quality economic growth and climate change. However, the monetary evolution and carbon emission are not investigated whole from the clean energy aspects. Using Wind energy sources as the acceptable variable, this paper employs threshold regression and impulse functions to assess the energy consumption and economic growth on carbon emission in 30 Chinese provinces over the 2000 to 2020 period. The Deep Belief Network (DBN) model predicts wind energy utilization and efficiency. The results show that economic development and carbon emissions are connected. Further, growth influences promote the offset of carbon emissions. Green innovation alters the nexus of carbon emissions, and China's economy reduces carbon usage. It provides the decision-making policies for clean energy development.

Unraveling Korea’s Energy Challenge: The Consequences of Carbon Dioxide Emissions and Energy Use on Economic Sustainability

This research delves into the effects of carbon dioxide emissions and energy consumption on economic growth in Korea from 1980 to 2022, employing a sophisticated nonlinear autoregressive distributed lag model. The study unveils pivotal findings, most notably the positive association between carbon dioxide emissions and economic growth, suggesting that periods of economic expansion in Korea have been accompanied by surges in emissions. Furthermore, the investigation highlights a significant, albeit asymmetrical, positive impact of primary energy consumption on economic growth, illuminating the critical role of energy in the nation’s economic trajectory. The analysis also identifies essential economic determinants—namely, the labor force, gross fixed capital formation, and net inflows of foreign direct investment—underscoring their pivotal contributions to economic proliferation. The reliability of these insights is corroborated through advanced econometric techniques, including fully modified ordinary least squares and dynamic ordinary least squares methods. A noteworthy discovery emerges from the Toda–Yamamoto causality test, revealing bidirectional Granger causality between carbon dioxide emissions and economic growth, as well as between energy consumption and economic growth. Moreover, it uncovers a unidirectional causality flowing from labor, capital formation, and foreign direct investment towards economic growth. These findings elucidate the complex interplay between environmental and economic elements, highlighting the critical need for sustainable energy policies and proactive environmental stewardship in Korea. By advocating for a synthesis of economic advancement and environmental sustainability, this study presents indispensable insights for policymakers. It calls for a judicious approach to balancing Korea’s economic ambitions with its ecological responsibilities, thereby charting a sustainable path forward for the nation. Through its comprehensive analysis, this research contributes valuable perspectives to the discourse on economic development and environmental sustainability, offering guidance for Korea’s strategic planning and policy formulation.

The dynamic nexus among carbon dioxide emissions, energy consumption, and tourism development in Sri Lanka

The study examines the dynamic nexus among carbon dioxide emissions, energy consumption, and tourism development in Sri Lanka. The tourism sector is one of the fastest-growing industries throughout the globe. This sector significantly contributes to the national development of a country in various ways, not only in developed countries but also in developing countries. However, activities related to the tourism sector contribute to environmental damage, such as transportation, establishing tourism destinations, discouraging wages, high presume on endangered species, and developing foreseeing fire, etc. Scholars for various studies have found conflicting results about the relationship between growing tourism and environmental degradation. Therefore, based on the ARDL cointegration analysis for the period 1990-2019 in Sri Lanka, this paper examines whether the tourism development has contributed to environmental damage, energy consumption, and economic growth. Statistical analysis of the data demonstrates that CO2 emissions in Sri Lanka are negatively correlated with tourist arrival (TR) but positively correlated with tourism receipt (TR) and energy consumption (EC) in the long term. Further, the findings highlight that there is no significant relationship between CO2 emissions and economic growth in Sri Lanka. The findings of this research ensure that the tourism industry can adjust to shifting energy conditions and economic dynamics by pointing policymakers in the direction of workable strategies that strike a balance between energy efficiency, economic growth, and sustainable tourism development.

The Effect of Energy Consumption and Economic Growth on Environmental Sustainability in Egypt: Financial Development and Globalization, do they have a role?

The Effect of Energy Consumption and Economic Growth on Environmental Sustainability in Egypt: Financial Development and Globalization, do they have a role?

Energy Transition in Vietnam: A Strategic Analysis and Forecast

Energy landscapes in Asia and other regions are currently undergoing a transformation aimed at increasing the share of clean energy sources. This article analyzes and forecasts the electricity demand in Vietnam, examining existing constraints that necessitate the shift from coal to renewable energy sources. The rapid economic growth in Vietnam is driving a substantial surge in electricity demand, projected to reach 124 thousand MW by 2030 according to the National Electricity Plan, positioning Vietnam second in Southeast Asia. This surge poses a significant challenge to national energy security, given the impracticality of effective coal mining in the country and the imperative to develop renewable energy sources. Anticipating the changes in Vietnam’s energy mix by 2050, this study foresees a substantial reduction in dependence on coal production. Government investment and green energy investment funds such as JETP are strategically directed towards renewable energy sources, including solar, wind, biomass, hydrogen energy, and efficient energy storage technologies. Consequently, this research substantiates the viability of an energy transition from coal to green energy in Vietnam. The article presents an assessment of the rate of replacing coal with renewable energy sources, taking into consideration various scenarios for economic development, energy consumption growth, and the utilization of renewable energy sources.

Synergistic Integration of Nanogenerators and Solar Cells: Advanced Hybrid Structures and Applications

AbstractThe rapid growth of global energy consumption and the increasing demand for sustainable and renewable energy sources have urged vast research into harnessing energy from various sources. Among them, the most promising approaches are nanogenerators (NGs) and solar cells (SCs), which independently offer innovative solutions for energy harvesting. This review paper presents a comprehensive analysis of the integration of NGs and SCs, exploring advanced hybrid structures and their diverse applications. First, an overview of the principles and working mechanisms of NGs and SCs is provided for seamless hybrid integrations. Then, various design strategies are discussed, such as piezoelectric and triboelectric NGs with different types of SCs. Finally, a wide range of applications are explored that benefit from the synergistic integration of NGs and SCs, including self‐powered electronics, wearable devices, environmental monitoring, and wireless sensor networks. The potential for these hybrid systems is highlighted to address real‐world energy needs and contribute to developing sustainable and self‐sufficient technologies. In conclusion, this review provides valuable insights into the state‐of‐the‐art developments in NGs and SCs integration, shedding light on advanced hybrid structures and their diverse applications.

Assessing the nonlinear impact of economic growth and renewable energy consumption on CO2 emissions in India: recent evidence from smooth transition autoregression model

PurposeThe purpose of this study is to investigate the nonlinear effects of renewable energy (RE) consumption and economic growth on per capita CO2 emissions during the time span from 1980 to 2020.Design/methodology/approachThe study uses the logistic smooth transition autoregression (STAR) model to decipher the nonlinear relationship between RE consumption, economic growth and CO2 emissions in the Indian economy.FindingsThe estimated results confirm a nonlinear relationship between India’s economic growth, RE consumption and CO2 emissions. The authors found that economic growth positively impacts CO2 emissions until it reaches a specific threshold of 1.81 (per capita growth). Beyond this point, further economic growth leads to a reduction in CO2 emissions. Similarly, RE consumption positively affects CO2 emissions until economic growth reaches the same threshold level, after which an increase in RE consumption negatively impacts CO2 emissions.Research limitations/implicationsThe study suggests that India should optimize the balance between economic growth and RE consumption to mitigate CO2 emissions. Policymakers should prioritize the adoption of RE during the early stages of economic growth. As economic growth reaches the specific threshold of 1.81 per capita, the economy should shift to more sustainable and energy-efficient practices to limit the effect of further CO2 emissions on further economic growth.Originality/valueTo the best of the authors’ knowledge, this study represents the first-ever endeavor to reexamine the nonlinear relationship between RE consumption, economic growth and CO2 emissions in India, using the STAR model.

The Prodigious Need for Fueling South Asian Economies through Sustainable Energies

South Asia is one of the fastest growing regions in the world during the last two decades. This growth momentum has been fuelled by carbon-intensive fossil fuels as reflected through the expansion in fossil fuel utilization in the total energy mix of 60.5 per cent on average for the period 1996-2000 to 70.3 per cent by 2011-2015. Against this backdrop, the study intended to identify the relationship between energy consumption and economic growth in South Asia to recognize the feasibility of promoting low-carbon economic progress in the future. The study employed annual data for the period from 1971-2014 for five selected South Asian countries. The unit root test results indicate that all the variables are stationary at their first difference and the four statistics of the Pedroni cointegration test indicate the existence of a long-run relationship between the variables. The FMOLS estimator implies the significance of the energy consumption in economic growth in the region where one per cent increase in energy consumption leads to a 0.78 per cent increase in economic growth. The study finds a strong bi-directional relationship between the core variables which illustrates the necessity to shift towards sustainable energy sources to achieve an undisrupted economic expansion with a minimum carbon footprint. Thus, the study lays the foundations to identify the aforementioned relationships and encourage the derive of sustainable energy solutions to fuel the growth in the region.

Geothermal power generation and positive impact in the greater bay area: a case study of Huizhou City, Guangdong Province.

Geothermal resources, as abundant renewable and clean natural resources on Earth, have been utilized for geothermal power generation in 29 countries. Guangdong Province, as one of the most developed, economically vibrant, and attractive investment regions in China, has experienced rapid economic growth. However, further development is constrained by resource limitations and severe ecological environmental pressures. The issue of energy consumption and economic growth imbalance needs to be urgently addressed. Geothermal energy, as a clean and stable form of energy, can reduce reliance on fossil fuels, decrease dependence on imported energy, and enhance national energy security. In this study, geological survey, geophysical survey, geochemical survey, remote sensing detection and drilling were carried out in the Shiba-Huangshadong area of Huizhou, and by analyzing the data on geothermal energy reserves in the study area, the available geothermal energy and its potentials in the study area were identified and its impact on the current energy consumption in Huizhou City was assessed, to validate the feasibility of the detailed application of the geothermal energy in the Greater Bay Area, which will enable the energy structure of Huizhou City optimize the energy structure.

Analysis of the Existence of Environmental Kuznets Curve (EKC) Hypothesis on CO2 Emission, Energy Consumption, and Economic Growth in Indonesia

This research explains environmental issues, in the context of Kuznets' theory that links economic growth, energy consumption and CO2 emissions. The focus of the research is to test the Kuznets Environment Curve (EKC) hypothesis in Indonesia in the period 1990-2019 using time series analysis Vector Error Correction Model (VECM). Research findings show that, both in the long and short term, CO2 emissions and energy consumption have a significant impact, while economic growth has no significant impact. These results indicate that the ECC hypothesis is not supported in Indonesia. Emerging policy implications include the transition to clean energy, sustainable farming and forestry management, waste and pollution control, and increased environmental awareness and education. Faced with the complexity of environmental challenges, the implementation of this policy has become crucial toining a balance between environmental sustainability and economic growth.