A Reexamination Of Causal Nexus Between Economic Growth And Renewable Enegy Consumption For Us: Further Evidence From Bootstrap-Corrected Causality Test

A Reexamination Of Causal Nexus Between Economic Growth And Renewable Enegy Consumption For Us: Further Evidence From Bootstrap-Corrected Causality Test

Şenay , Saraç

Recent debates about renewable energy consumption manifest two main expectations. Firstly, renewable energy consumption should contribute to economic growth and secondly, it should not cause a damage on environment. This study focuses on the first issue by applying bootstrap-corrected causality test for the US since empirical literature criticizes the Toda- Yamamoto test which bases on asymptotic distribution. The models consist of real GDP, employment, investment and kinds of renewable energy consumption. Only one causal relationship was found from biomass-waste-drived energy consumption to real GDP. No causal relationship was found between real GDP and all of the other renewable energy kinds – total renewable energy consumption, geothermal energy consumption, hydro-electric energy consumption, biomass energy consumption and biomass-wood-drived energy consumption. That is using of energy from waste cause not only solving the dumping problems but also it contributes to real GDP. For policy purpose, the results of this study suggest that countries should concentrate on energy producing from waste as an alternative energy resource. Keywords: Sustainable development, Economic growth, Renewable energy consumption, US. JEL: O13, Q42, O51

Conference or Workshop Item
PeerReviewed

2012-05-31

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