Solar energy-economic growth nexus in top 10 countries with the highest installed capacity |
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| Authors: | Umit Bulut Angeliki Menegaki |
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| Affiliation: | 1. Faculty of Economics and Administrative Sciences, Department of Economics, Kirsehir Ahi Evran University , Kirsehir, Turkey ubulut@ahievran.edu.tr;3. Department of Economics and Management of Tourist Units, Agricultural University of Athens , Nea Poli, Amfissa, Greece;4. Faculty of Economics &5. Management, Open University of Cyprus , Latsia, Cyprus |
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| Abstract: | ABSTRACT This paper investigates the relationship between solar energy production and economic growth for top 10 countries with the highest installed solar energy production capacity as of 2017 (China, the USA, Japan, Germany, Italy, India, the UK, France, Australia, and Spain, respectively) using data over the period 1999–2015. For this purpose, the paper employs panel cointegration and causality methods that are robust to cross-sectional dependence. The findings imply that the coefficient of solar energy is insignificant in the empirical model and that there is no causality between solar energy and GDP, indicating the neutrality hypothesis prevails for solar energy. Theoretical and practical implications are also discussed. |
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| Keywords: | Renewable energy solar energy economic growth cross-sectional dependence panel cointegration panel causality |
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