ASSESSMENT OF RELATIONS BETWEEN RENEWABLE ENERGY AND ECONOMIC GROWTH IN BULGARIA - VAR ANALYSIS

Hamit Can, Gabriela Krasteva

Abstract


The role of existing interconnections between renewable energy on the one hand and economic growth on the other is an emphasis on many studies, but within the scope of Bulgaria, the specificity of these relations requires an in-depth review of the growing importance of renewable energies. The main factors to be surveyed are: consumption of renewable energy, production of renewable energy and per capita GDP. The interaction of these variables is analyzed to show the direction and importance of the relationship. The analyzes include the vector autoregression model and a number of cointegration and causality tests. The period covers the years after the collapse of the socialist system and the integration of modern energy use, as well as the specific crisis moments that changed and reduced the prospects for sustainable growth, part of which are also the alternatives for the extraction of natural energy resources.

Keywords


Renewable energy, Economic growth, Johansen Cointegration, Granger causality, Macroeconomic influence

Full Text:

PDF

References


Apergis, Nicholas vd. 2010. On The Casual Dynamics Between Emissions, Nuclear Energy, Renewable Energy and Economic Growth. Ecological Economics, 69 (2010), 2255-2260.

Aqeel, Anjum and Mohammad Sabihuddin Butt. 2001. The Relationship Between Energy Consumption and Economic Growth in Pakistan. Asia-Pacific Development Journal, 8(2), 101-110.

Bhattacharya, Mita vd. 2016. The Effect of Renewable Energy Consumption on Economic Growth: Evidence From on Top 38 Countries. Applied Energy, 162 (2016), 733 741.

Bloch, Harry vd. 2015. Economic Growth with Coal, Oil and Renewable Energy Consumption in China: Prospects for Fuel Substitution. Economic Modelling, 44 (2015), 104 115.

Braun, P., Mitnik, S. 1993. Misspecifications in vector autoregressions and their effects on impulse responses and variance decompositions. Journal of Econometrics vol. 59, N 3, 319-341.

Dickey, D., Fuller, W. 1979. Distribution of the Estimators for Autoregressive Time Series with a Unit Root. Journal of the American Statistical Association, 427-431.

Dickey, D., Said, S. 1984. Testing for Unit Roots in Autoregressive-Moving Average Models of Unknown Order. Biometrika, Vol. 71, No. 3, 599-607.

Granger, C. 1969. Investigating Causal Relations by Econometric Models and Cross-spectral Methods. Econometrica. 37 (3), 424–438.

Hondroyıannıs, George, Sarantis Lolos ve Evangelia Papapetrou. 2002. Energy Consumption and Economic Growth Assessing the Evidence From Greece. Energy Economics, 24, 319–336.

Ibrahiem, Dalia M. 2015. Renewable Electricity Consumption, Foreign Direct Investment and Economic Growth in Egypt: An ARDL Approach. Procedia Economics and Finance, 30 (2015), 313- 323.

Inglesi-Lotz, Roula. 2016. The Impact of Revewable Energy Consumption to Economic Growth: A Panel Data Application. Energy Economics, 53 (2016), 58-63.

Johansen, S. 1991. Estimation and Hypothesis Testing of Cointegration Vectors in Gaussian Vector Autoregressive Models. Econometrica. 59 (6), 1551-1580.

Lutkepohl, H. 1993. Data from Introduction to Multiple Time Series Analysis: Quarterly data on West German economy. Springer-Verlag.

Menyah, Kojo ve Yemane Wolde-Rufael. 2010. CO2 Emissions, Nuclear Energy, Renewable Energy and Economic Growth in the US. Energy Policy, 38(2010), 2911-2915.

Narayan, Paresh Kumar ve Russel Smyth. 2008. Energy Consumption and Real GDP in G7 Countries: New Evidence from Panel Cointegration with Structural Breaks. Energy Economics, 30, 2331-2341.

Odhiambo, Nicholas M. 2009. Electricity Consumption and Economic Growth in South Africa: A Trivariate Causality Test. Energy Economics, 31, 635-640.

Oh, Wankeun and Kihoon Lee. 2004. Causal Relationship Between Energy Consumption and GDP Revisited: The Case of Korea 1970–1999. Energy Economics, 26, 51 59.

Ozcicek, O. 1999. Lag Length Selection in Vector Autoregressive Models:Symmetric and Asymmetric Lags. Louisiana State University: W. Douglas McMillin.

Pao, Hsiao-Tien ve Hsin-Chia Fu. 2013. Renewable Energy, NonRenewable Energy and Economic Growth in Brazil. Renewable and Sustainable Energy Reviews, 25 (2013), 381-392.

Sebri, Maamar ve Ousama Ben-Salha. 2014. On The Causal Dynamics Between Economic Growth, Renewable Energy Consumption, CO2 Emissions and Trade Openess: Fresh Evidence From BRICS Countries. Renewable and Sustainable Energy Reviews, 39 (2014), 14-23.

Stern, David I. 2000. A Multivariate Cointegration Analysis of the Role of Energy in the US Macroeconomy. Energy Economics 22, 267-283.


Refbacks

  • There are currently no refbacks.


New knowledge Journal of science is financed by the National Science Fund of the Republic of Bulgaria - contract № КП-06-НП1/5 of 17.12.2019 in the competition of Bulgarian scientific periodicals – 2019

New knowledge Journal of science is financed by the National Science Fund of the Republic of Bulgaria – contract № ДНП 05/52 от 22.12.2016 in the competition of Bulgarian scientific periodicals – 2016

The contents of this publication do not necessarily reflect the position or opinion of the National Science Fund of the Republic of Bulgaria. The opinions expressed are those of the author(s) only and should not be considered as representative of the National Science Fund’s official position.

https://www.fni.bg/

National Science Fund of Bulgaria