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Investigating the nexus between hydroelectricity energy, renewable energy, nonrenewable energy consumption on output: evidence from E7 countries

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Abstract

The transition of most economies especially heavily industrialized nations like China, Turkey, Russia, India, Indonesia, Brazil, and Mexico fondly known as E7 are fast emerging economies with its impact on economic growth and ecosystem. On the above highlight, the present study explores the dynamic interaction between hydroelectricity energy, renewable energy consumption, nonrenewable energy consumption on economic growth over annual time frequency data from 1990 to 2018. To this end, Kao co-integration technique is adopted in conjunction with panel ordinary least squares, dynamic ordinary least squares, and fully modified ordinary least square estimators over the identified blocs while the heterogeneous causality test of Dumitrescu and Hurlin is employed to detect the direction of causality among the variables. Empirical result shows long-run analysis reveals long-run equilibrium relationship between the examined variables. Furthermore, a one-way causality relationship is observed between economic growth and nonrenewable energy, economic growth and renewable energy, and economic growth and pollutant emission. The present study identifies a U-shaped pattern among nonrenewable energy consumption and economic growth in the long-run. These findings suggest that as economic growth increases, there is less strengthening of energy from the nonrenewable energy consumption hence, portentous deterioration in nonrenewable usage while authenticating the proficiency of nonrenewable energy consumption in the E7 countries. Further policy prescriptions are rendered in the concluding section.

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Notes

  1. For brevity, more descriptions are presented in Appendix 1 and basic summary statistics into the data are in appendix 2.

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Author information

Authors and Affiliations

  1. Faculty of Economics and Administrative Sciences, Cyprus International University, Nicosia, North Cyprus, Via Mersin 10, Turkey

    Bright Akwasi Gyamfi & Murad A. Bein

  2. Faculty of Economics Administrative and Social Sciences, Istanbul Gelisim University, Istanbul, Turkey

    Festus Victor Bekun

  3. Department of Accounting, Analysis and Audit, School of Economics and Management, South Ural State University, 76, Lenin Aven., Chelyabinsk, 454080, Russia

    Festus Victor Bekun

Authors
  1. Bright Akwasi Gyamfi
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  2. Murad A. Bein
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  3. Festus Victor Bekun
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Corresponding author

Correspondence to Festus Victor Bekun.

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Responsible editor: Nicholas Apergis

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Appendices

Appendix 1. Explanation of statistical data

Variable

Explanation

Sources

Renewable energy consumption (% of total final energy consumption)

Renewable energy consumption is the share of renewable energy in total final energy consumption.

World Bank, Sustainable Energy for All (SE4ALL) database from the SE4ALL Global Tracking Framework led jointly by the World Bank, International Energy Agency, and the Energy Sector Management Assistance Program.

CO2 emissions (kt)

Carbon dioxide emissions are those stemming from the burning of fossil fuels and the manufacture of cement. They include carbon dioxide produced during consumption of solid, liquid, and gas fuels and gas flaring.

Carbon Dioxide Information Analysis Center, Environmental Sciences Division, Oak Ridge National Laboratory, Tennessee, United States.

Population, total

Total population is based on the de facto definition of population, which counts all residents regardless of legal status or citizenship. The values shown are midyear estimates.

(1) United Nations Population Division. World Population Prospects: 2019 Revision. (2) Census reports and other statistical publications from national statistical offices, (3) Eurostat: Demographic Statistics, (4) United Nations Statistical Division. Population and Vital Statistics Report (various years), (5) U.S. Census Bureau: International Database, and (6) Secretariat of the Pacific Community: Statistics and Demography Programmer.

Trade (% of GDP)

Trade is the sum of exports and imports of goods and services measured as a share of gross domestic product.

World Bank national accounts data, and OECD National Accounts data files.

GDP per capita (constant 2010 US$)

GDP per capita is gross domestic product divided by midyear population. GDP is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources. Data are in constant 2010 U.S. dollars.

World Bank national accounts data, and OECD National Accounts data files.

Electricity production from hydroelectric sources (% of total)

Sources of electricity refer to the inputs used to generate electricity. Hydropower refers to electricity produced by hydroelectric power plants.

IEA Statistics © OECD/IEA 2014 (http://www.iea.org/stats/index.asp), subject to https://www.iea.org/t&c/termsandconditions/

Fossil fuel energy consumption (% of total)

Fossil fuel comprises coal, oil, petroleum, and natural gas products.

IEA Statistics © OECD/IEA 2014 (http://www.iea.org/stats/index.asp), subject to https://www.iea.org/t&c/termsandconditions/

  1. All data extracted from the World Bank data index

Appendix 2. Corrections matrix

figure a

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Gyamfi, B.A., Bein, M.A. & Bekun, F.V. Investigating the nexus between hydroelectricity energy, renewable energy, nonrenewable energy consumption on output: evidence from E7 countries. Environ Sci Pollut Res 27, 25327–25339 (2020). https://doi.org/10.1007/s11356-020-08909-8

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