Renewable Energy Consumption Growth Research Articles

A wavelet analysis of connectedness between economic globalization, nonrenewable, and renewable energy consumption, and CO2 emissions in Vietnam

We examine the relationships between Foreign Direct Investment (FDI), Trade Openness (TO) and consumption of nonrenewable energy, consumption of renewable energy, and CO2 growth in Vietnam’s different time and frequency dimensions from 1985 to 2019 using cutting-edge multivariate wavelet analysis approaches. The multiple correlations indicate that two regions that were concentrated between 1985 and 1999 (cycles with a periodicity of three years). The partial coherency reveals that the interconnectedness between the TO and nonrenewable energy consumption mostly appears in the low-frequency band (the 15-to-21-year frequency band) starting from 1985 to 1999 and in high frequencies running from 1996 to 1999 and from 2004 to 2008. There are two phases of partial coherence between FDI and nonrenewable energy consumption. In the first phase (1993 to 2003), nonrenewable energy consumption was negatively associated with changes in FDI growth. In the second phase, from 2003 to 2015, the consumption of nonrenewable energy is in phase with the growth of FDI leading. There was a negative nexus between changes in FDI growth and changes in renewable energy consumption growth in the phase from 1997 to 2008. The partial phase difference reveals that the interconnectedness between FDI and CO2 emission mainly lies in the 18–25 frequency band. It appears that the phase from the beginning of our time series to 1994 indicated that changes in FDI led to changes in CO2 emissions, with the relationship being negative. Based on the partial coherence between TO and nonrenewable energy consumption, most regions fell within the 14–22-year frequency band from 1985 to 1994 and 1990 to 2006.

Trajectory and drivers of China's consumption-based and production-based renewable 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.

Time-varying interactions between geopolitical risks and renewable energy consumption

This study utilizes a time-varying parameter Bayesian vector autoregressive model to investigate the dynamic interactions between geopolitical risk (GPR) and renewable energy consumption growth (RECG). The identification strategy is flexible to accommodate cases both with and without restrictions of the direction of impact. It is shown that GPR shocks have positive impacts on RECG over time. In contrast, RECG shocks decrease GPR in the whole sample period. These results show that renewable energy is a useful tool to reduce geopolitical risks. Meanwhile, the increasing geopolitical risks tend to augment renewable energy consumption. We also provide the responses at different time horizons and during particular geopolitical events. The estimating results are robust when industrial production growth is used as a control variable. Lastly, several implications for economic policy making are discussed.

Impacts of urbanization on renewable energy consumption in China

In this paper, we used the logarithmic mean Divisia index method to investigate the impact of urbanization on renewable energy consumption growth (RECG). The growth in renewable energy consumption is attributed to the urbanization effect, energy mix effect, energy intensity effect, economic effect, and population effect; RECG can be roughly divided into the slow growth stage, the fluctuant growth stage, and the accelerated growth stage. The results showed that the energy mix effect, economic effect, and population effect positively affected RECG. However, a significantly negative relationship was found between energy intensity and RECG. Furthermore, the contribution of urbanization differed in RECG stages, and urbanization contributed more to the total energy consumption growth than to RECG. This study would thus provide policymakers with insights about the link between urbanization and renewable energy consumption.

A Global Perspective on the Renewable Energy Consumption-Growth Nexus

This study examines the causal relationship between renewable energy consumption and economic growth for 80 countries within a multivariate panel framework over the period 1990–2007. The results of the panel cointegration test indicates there is a long-run equilibrium relationship between real gross domestic product, renewable energy consumption, real gross fixed capital formation, and the labor force with the respective coefficient estimates positive and statistically significant. The results from the panel error correction model reveal bidirectional causality between renewable energy consumption and economic growth in both the short-run and long-run.