The causal relationship between energy resources and economic growth in Brazil

This study investigates the causal relationship between clean and non-clean energy consumption and economic growth in Brazil over the period of 1980–2009. Clean energy consumption at aggregated level of total renewable energy consumption and disaggregated levels of hydroelectric, new renewables, and nuclear energy consumption are tested within a production function framework. A cointegration test reveals a long-term equilibrium relationship between real output, capital, labor, and renewable and non-renewable energy consumption at aggregated level, and a long-term equilibrium relationship between real output, capital, labor, and hydroelectric/new renewables/nuclear and fossil fuel energy consumption at disaggregated level. The capital, labor, and new renewables elasticities of real output are positive and statistically significant, other energy consumption item's elasticities are insignificant. The results from error correction model reveal the interdependencies between new renewables, nuclear, fossil fuel, and total non-renewable energy consumption and economic growth, the unidirectional causality from hydroelectric/total renewable consumption to economic growth, the substitutability between new renewables and fossil fuel consumption, and the substitutability between new renewables and nuclear energy consumption. Additionally, nuclear and new renewables energy consumption responds to bring the system back to equilibrium. Overall, aggregated analysis may obscure the relationship between different types of clean energy consumption and economic growth.     

How does hydrogen-based renewable energy change with economic development? Empirical evidence from 32 countries

The hydrogen-based renewable energy resource base is sufficient to meet several times the present world energy demand. This paper analyzes the drivers promoting hydrogen-based renewable energy utilization, focusing on a group of 32 countries by applying panel data techniques. The pooled ordinary least square estimator and fixed effect estimator are employed for comparison. Grey relational analysis is used to explore the relationships at a national level between renewable energy development and its influencing factors. The main results over our time span indicate that: (1) GDP per capita is a significantly positive contributor to renewable energy consumption, while oil price does not present a strong relationship in the use of renewables; (2) social awareness about climate change and concerns for energy security is not enough to motivate the switch from traditional to renewable energy sources; (3) the role of urbanization in renewable energy consumption relies on different stages of the urbanization process, resulting in opposite trends in renewable energy development between developing and developed countries. The results show that the market mechanism is not entirely responsible for encouraging the use of renewables and the role of climate change and energy security concerns in renewables use should be enhanced. By analyzing the results, policy implications are provided for the sustainable development of renewable energy.     

Are government policies effective in promoting deployment of renewable electricity resources?

Using a panel data over 50 US states and years 1991–2007, this paper uses a state fixed-effects model with state-specific time-trends to estimate the effects of state policies on the penetration of various emerging renewable electricity sources, including wind, biomass, geothermal, and solar photovoltaic. Renewable portfolio standards with either capacity or sales requirements have a significant impact on the penetration of all types of renewables—however, this impact is variable depending on the type of renewable source: it is negative for combined renewables, wind, and biomass; and positive for geothermal and solar. Further, clean energy funds and required green power options mostly result in increasing the penetration of all types of renewables. On the other hand, voluntary renewable portfolio standards as well as state green power purchasing programs are found to be ineffective in increasing the penetration of any type of renewable source. Finally, economic variables, such as electricity price, natural gas price, and per capita GDP as well as structural variables, such as league of conservation voters rating and the share of coal-generated electricity are found to be generally insignificant, suggesting the crucial role of policy in increasing the penetration of renewables.     

Concurrent and legacy economic and environmental impacts from establishing a marine energy sector in Scotland

We examine the economic and environmental impact that the installation of 3 GW of marine energy capacity would have on Scotland. This is not a forecast, but a projection of the likely effects of meeting the Scottish Government's targets for renewable energy through the development of a marine energy sector. Energy, with a particular focus on renewables, is seen by the Scottish Government as a “key sector”, with high growth potential and the capacity to boost productivity (Scottish Government, 2007a. The Government Economic Strategy. The Scottish Government, Edinburgh). The key nature of this sector has been identified through targets being set for renewable energy to achieve environmental and economic benefits. Using a regional computable general equilibrium (CGE) model of Scotland we show that the development of a marine energy sector can have substantial and beneficial impacts on GDP, employment and the environment over the lifetime of the devices, given the encouragement of strong indigenous inter-industry linkages. Furthermore, there are also substantial “legacy” effects that persist well beyond the design life of the devices.     

Exploiting the oil–GDP effect to support renewables deployment

The empirical evidence from a growing body of academic literature clearly suggests that oil price increases and volatility dampen macroeconomic growth by raising inflation and unemployment and by depressing the value of financial and other assets. Surprisingly, this issue seems to have received little attention from energy policy makers.In percentage terms, the oil–GDP effect is relatively small, producing losses in the order of 0.5% of GDP for a 10% oil price increase. In absolute terms however, even a 10% oil price rise—oil has risen at least 50% in the last year alone—produces GDP losses that, could they have been averted, would significantly offset the cost of increased RE deployment. This paper draws on the empirical oil–GDP literature, which we summarize, to show that (i) by displacing gas and oil, renewable energy investments can help nations avoid costly macroeconomic losses produced by the oil–GDP effect and, (ii) that these avoided losses represent a significant external macroeconomic benefit of such investments.We show that a 10% increase in RE share avoids GDP losses in the range of $29–$53 billion in the US and the EU ($49–$90 billion for OECD). These avoided losses offset one-fifth of the RE investment needs projected by the EREC and half the OECD investment projected by a G-8 Task Force. For the US, the figures further suggest that each additional kW of renewables, on average, avoids $250–$450 in GDP losses, a figure that varies across technologies as a function of annual capacity factors. We approximate that the offset is worth $200/kW for wind and solar and $800/kW for geothermal and biomass. While we focus only on renewables, the GDP offset will apply in some measure to other non-fossil technologies including energy efficiency, DSM and nuclear. The societal valuation of non-fossil alternatives must reflect these avoided GDP losses, whose benefit is not fully captured by private investors. This said, we fully recognize that wealth created in this manner does not directly form a pool of public funds that is easily earmarked for renewables support.Finally, the oil–GDP relationship has important implications for correctly estimating direct electricity generating cost for conventional and renewable alternatives and for developing more useful energy security and diversity concepts. We also address these issues.     

The renewable energy consumption–growth nexus in Central America

This study examines the relationship between renewable energy consumption and economic growth for a panel of six Central American countries over the period 1980–2006. The heterogeneous panel cointegration test reveals a long-run equilibrium relationship between real GDP, renewable energy consumption, real gross fixed capital formation, and the labor force with the respective coefficients positive and statistically significant. The results from the panel error correction model indicate bidirectional causality between renewable energy consumption and economic growth in both the short- and long-run.     

Additional renewable energy growth through small-scale community orientated energy policies

This paper summarises the energy policies that the UK Government has enacted in order to achieve its renewable targets by 2010. Current policies are designed primarily to support large-scale renewable projects through Renewable Obligation Certificates, Levy Exemption Certificates and capital grant schemes. Non-profit domestic and non-profit community renewable projects are also eligible for grant support. First-hand experience of privately owned renewable projects indicate that existing renewable policy is insufficient in its support of both small-scale and community-based profit oriented renewable energy (RE) schemes. Primary and secondary survey information suggests that people living in regions where RE will be situated may generally be inclined to support broader uses of renewables in these regions. Small-scale renewables can make a significant cumulative contribution to the RE mix. The results reported in this paper support the contention that the Government could go further towards approaching its targets through rural-focused changes to its energy incentive programmes.     

Financing investments in renewable energy : the impacts of policy design

The costs of electric power projects utilizing renewable energy technologies (RETs) are highly sensitive to financing terms. Consequently, as the electricity industry is restructured and new renewables policies are created, it is important for policymakers to consider the impacts of renewables policy design on RET financing. This paper reviews the power plant financing process for renewable energy projects, estimates the impact of financing terms on levelized energy costs, and provides insights to policymakers on the important nexus between renewables policy design and financing. We review five case studies of renewable energy policies, and find that one of the key reasons that RET policies are not more effective is that project development and financing processes are frequently ignored or misunderstood when designing and implementing renewable energy policies. The case studies specifically show that policies that do not provide long-term stability or that have negative secondary impacts on investment decisions will increase financing costs, sometimes dramatically reducing the effectiveness of the program. Within U.S. electricity restructuring proceedings, new renewable energy policies are being created, and restructuring itself is changing the way RETs are financed. As these new policies are created and implemented, it is essential that policymakers acknowledge the financing difficulties faced by renewables developers and pay special attention to the impacts of renewables policy design on financing. As shown in this paper, a renewables policy that is carefully designed can reduce renewable energy costs dramatically by providing revenue certainty that will, in turn, reduce financing risk premiums.     

Renewable energy consumption and economic growth: Evidence from a panel of OECD countries

This study examines the relationship between renewable energy consumption and economic growth for a panel of twenty OECD countries over the period 1985–2005 within a multivariate framework. Given the relatively short span of the time series data, a panel cointegration and error correction model is employed to infer the causal relationship. The heterogeneous panel cointegration test reveals a long-run equilibrium relationship between real GDP, renewable energy consumption, real gross fixed capital formation, and the labor force with the respective coefficients positive and statistically significant. The Granger-causality results indicate bidirectional causality between renewable energy consumption and economic growth in both the short- and long-run.     

Spatial relationship between economic growth and renewable energy consumption in 26 European countries

The relationship between economic growth (GDP) and renewable energy consumption in different regions has been studied using diverse methods and data. However, most of these studies focus on the temporal aspect but do not explain the spatial relationship between GDP and renewable energy since they assume that each country is an island unto itself and do not consider the possible spatial relationship between neighbouring countries. In this study, we have used a spatial Durbin model with panel data to investigate the spatial dependence between GDP and renewable energy consumption for 26 European countries over the period 1991–2015. We conclude that spatial dependence leads to a change in renewable energy consumption that affects the GDP of neighbouring countries. Specifically, a 1% increase in the renewable energy consumption of one country will increase economic growth by up to 0.054% in the GDP of its neighbouring countries.     

The renewable energy,CO2 emissions,and economic growth: VAR model

This paper provides an empirical analysis of CO₂ emissions and economic growth, renewable energy consumption, and energy consumption over the period 1975–2014 in Germany. This paper uses the autoregressive distributed lag (ARDL) approach of cointegration test and vector error-correction models. The unit root and cointegration tests show that the long-run relationship between CO₂ emissions and its determinants. The empirical results show that the findings do not support the environmental Kuznets curve between real GDP and CO₂ emissions. To estimate the shocks of renewable energy consumptions, the study applies the dynamic test of Impulse Response Function (IRF) under the VAR method. The increasing portion of renewable energy consumption in electricity generation would have no impacts on the environment. However, the hikes of renewable energy sources would incur more cost to electricity producers and shrivel up the growth of economies through the expansionary effect of industry’s consumption and private capital spending in the Germany’s economy.     

Renewable energy and macroeconomic efficiency of OECD and non-OECD economies

This article analyzes the effects of renewable energy on the technical efficiency of 45 economies during the 2001–2002 period through data envelopment analysis (DEA). In our DEA model, labor, capital stock, and energy consumption are the three inputs and real GDP is the single output. Increasing the use of renewable energy improves an economy's technical efficiency. Conversely, increasing the input of traditional energy decreases technical efficiency. Compared to non-OECD economies, OECD economies have higher technical efficiency and a higher share of geothermal, solar, tide, and wind fuels in renewable energy. However, non-OECD economies have a higher share of renewable energy in their total energy supply than OECD economies.     

Does moving towards renewable energy cause water and land inefficiency? An empirical investigation

This study investigates the effect of renewable energy production on water and land footprint in 58 developed and developing countries for the period of 1980–2009. Utilizing the ecological footprint as an indicator, the fixed effects, difference and system generalized method of moment (GMM) approaches were employed and eight different models were constructed to achieve robustness in the empirical outcomes. Despite the use of different methods and models, the outcome was the same whereby GDP growth, urbanization, and trade openness increase the water and land footprint. Moreover, renewable energy production increases the water and land inefficiency because of its positive effect on ecological footprint. Additionally, based on the square of GDP it is concluded that the EKC hypothesis does not exist while the square of renewable energy production indicates that renewable energy production will continue to increase water and land footprint in the future. From the outcome of this study, a number of recommendations were provided to the investigated countries.     

A new tailored scheme for the support of renewable energies in developing countries

Historically the promotion of renewable energy technologies in isolated areas has involved international donors or governments subsidising the initial capital investment. This paper proposes an alternative support mechanism for remote villages based on the generation of renewable electricity. This communication presents an evaluation of the Renewable Energy Premium Tariff (RPT) scheme, a locally adapted variation of the Feed-in Tariff tailored for decentralised grids of developing countries. The RPT scheme stimulates the deployment of renewable energy technologies by paying for renewable electricity generated. A good-quality performance is secured since the support is given based on the electricity produced by renewables, not for the initial capital investment.     

Drivers for renewable energy: A comparison among OECD countries

The difference in the shares of renewable energy in total primary energy supply among OECD countries is immense. We attempt to identify some key factors that may have driven this difference for renewable energy in general and bioenergy in particular. We found that besides country-specific factors, gross national product (GDP) and renewable energy and bioenergy market deployment policies have significant and positive impacts on the per capita supply of both renewable energy and bioenergy in OECD countries. R&D expenditures, energy prices, CO₂ emissions, and other energy policies are statistically insignificant in terms of their impact on renewable energy and bioenergy supply. However, this does not necessarily mean that they are not potential drivers for renewable energy and bioenergy, but rather suggests that their magnitudes have not been big enough to significantly influence energy supply based on the historical data from 1994 to 2003. These findings lead to useful policy implications for countries attempting to promote renewable energy and bioenergy development.     

Renewables portfolio,individual preferences and social values towards RES technologies

The massive deployment of renewable energy sources represents a high priority for Greece in order to comply with the Directive 2009/28/EC on the promotion of the use of energy from renewable sources by 2020. In this perspective, Aegean islands especially Lesvos, are endowed with a considerable potential of a portfolio of renewables, a fact that the entrepreneurial interest has already been targeted. However, regulatory attempts for a massive penetration of renewables do not take seriously into account preferences and risk perceptions of local communities where the proposed projects are to be installed. The aim of this study is to investigate individual preferences and social values towards specific technologies of renewables in Lesvos island. We apply an open-ended contingent valuation survey in order to analyze factors shaping public attitudes towards a portfolio of renewable technologies and estimate the economic welfare (Willingness To Pay) of the preferred technologies. We argue that such information is relevant for energy policy design and the establishment of effective measures for the promotion of renewable energy sources.     

Impact of the regulatory framework for transmission investments on the cost of renewable energy in the EU

Under the current regulatory frame in the EU, transmission planning is done at the national level to maximize national welfare, rather than European welfare. In this paper, we develop a competitive equilibrium model that calculates the impact of this imperfect regulatory framework on the cost of renewable energy. We apply the model to a power system with two interconnected zones, and find that the impact is case specific, but significant. We also find that the negative impact of national transmission planning on the cost of renewable energy is more significant in a state of the world in which Member States trade renewable energy, but that this negative effect is much smaller than the positive effect of renewable energy trade between Member States. We conclude that the imperfect regulatory framework for transmission investment is a significant cost for renewable energy in the EU, but that it should not stop Member States from trading renewable energy.     

A study of China–India cooperation in renewable energy field

This paper analyses the present situation of renewables international cooperation in China and India and the reasons, basis and conditions of China-India cooperation for renewable energy and explores China-India cooperation strategies for renewable energy. This study indicates that (1) the two countries have made a lot of progress in the international cooperation of renewable energy, but China-India cooperation for renewable energy is still in its primary stage; (2) there are not only the common benefits but also the solid basis and good conditions for China-India cooperation in the field of renewable energy; (3) there is need to explore and design the cooperation strategies for renewable energy of China and India in order to strengthen renewables cooperation between two countries.     

How the next US president should slow global warming

This paper addresses the energy technologies and policies that the next US president should immediately implement to slow global warming. Increased reliance on renewable energy through deployment of a National Renewable Portfolio Standard will help meet increased electrical demand in a sustainable way. Carbon regulation through an internationally fungible cap and trade system will help make renewables more cost competitive with conventional energy. Mandating National Energy Efficiency Portfolio Standards will also help decrease electrical demand and reduce the need for large investments in new generation. Within the transportation sector, plug-in hybrid and electric vehicles should be rapidly deployed to shift this sector's liquid fuel requirements to the electrical grid.     

Motivations driving renewable energy in European countries: A panel data approach

Despite the increasing amount of literature available on renewable energy, the empirical analysis about drivers promoting renewables remains scarce. We have analyzed those drivers for European Countries. Over an extended period of time (1990–2006) we used panel data techniques, namely the fixed effects vector decomposition. The results suggest that both the lobby of the traditional energy sources (oil, coal, and natural gas) and CO₂ emissions restrain renewable deployment. The objective of reducing energy dependency appears to stimulate renewable energy use. Our results robustly support the EU decision to create a directive promoting the use of renewable sources (Directive 2001/77/EC). We also offer suggestions with regards to the design of appropriate policies towards renewable energy deployment.