Date of Award
Honors Bachelor of Arts
A growing amount of electricity is produced from renewable sources. For this reason, it is important to understand the effect that this developing industry has on economic growth. This paper examines this relationship between economic growth and renewable energy consumption within a multivariate framework using a panel of 22 OECD countries over the period 1995-2012. The results of the Fully-Modified Least Squares regression indicate a statistically significant, albeit small, negative relationship between real GDP and renewable energy. Granger Causality tests indicate bidirectional causality running between GDP and renewable energy. The small effect of renewable energy on growth implies that policies supporting the renewable energy industry will not have a significant impact on GDP.
Neitzel, David, "Examining Renewable Energy and Economic Growth: Evidence from 22 OECD Countries" (2017). Honors Program Theses. 46.