The impacts of economic growth, trade openness and technological progress on renewable energy use in organization for economic co-operation and development countries

This study investigates the short-term and long-term impacts of economic growth, trade openness and technological progress on renewable energy use in Organization for Economic Co-operation and Development (OECD) countries. Based on a panel data set of 25 OECD countries for 43 years, we used the auto...

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Bibliographic Details
Published in:Renewable energy Vol. 145; pp. 382 - 390
Main Authors: Alam, Md. Mahmudul, Murad, Md. Wahid
Format: Journal Article
Language:English
Published: Elsevier Ltd 01.01.2020
Elsevier
Subjects:
data collection
economic development
Economic growth
Economics and Finance
equations
Humanities and Social Sciences
issues and policy
least squares
OECD countries
renewable energy sources
Renewable energy use
Technological progress
trade
Trade openness
Renewable energy use
Economic growth
Technological progress
OECD countries
Trade openness
ISSN:0960-1481, 1879-0682
Online Access:Get full text
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Summary:This study investigates the short-term and long-term impacts of economic growth, trade openness and technological progress on renewable energy use in Organization for Economic Co-operation and Development (OECD) countries. Based on a panel data set of 25 OECD countries for 43 years, we used the autoregressive distributed lag (ARDL) approach and the related intermediate estimators, including pooled mean group (PMG), mean group (MG) and dynamic fixed effect (DFE) to achieve the objective. The estimated ARDL model has also been checked for robustness using the two substitute single equation estimators, these being the dynamic ordinary least squares (DOLS) and fully modified ordinary least squares (FMOLS). Empirical results reveal that economic growth, trade openness and technological progress significantly influence renewable energy use over the long-term in OECD countries. While the long-term nature of dynamics of the variables is found to be similar across 25 OECD countries, their short-term dynamics are found to be mixed in nature. This is attributed to varying levels of trade openness and technological progress in OECD countries. Since this is a pioneer study that investigates the issue, the findings are completely new and they make a significant contribution to renewable energy literature as well as relevant policy development. •Economic growth, trade openness and technological growth drive renewable energy use.•Long-term dynamics of the variables are found homogenous across the OECD countries.•Short-term dynamics vary as to variation in technological growth and trade openness.•An understanding of variable dynamics is vital for increasing renewable energy use.
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ISSN:0960-1481
1879-0682
DOI:10.1016/j.renene.2019.06.054