Skip to main content

Growth Impact of Transition from Non-renewable to Renewable Energy in the EU: The role of Research and Development Expenditure.

Adedoyin, F., Bekun, F.V. and Alola, A.A., 2020. Growth Impact of Transition from Non-renewable to Renewable Energy in the EU: The role of Research and Development Expenditure. Renewable Energy. (In Press)

Full text available as:

[img] PDF
RENE-D-19-05287 R1 04.04.2020.pdf - Accepted Version
Restricted to Repository staff only until 11 June 2021.
Available under License Creative Commons Attribution Non-commercial.

396kB

DOI: 10.1016/j.renene.2020.06.015

Abstract

In recent times, physical-capital investment has been outweighed by research and development expenditure in terms of their growth impact. However, how such expenditure affect economic expansion in the presence of energy consumption is yet to be given thorough attention in the literature. Consequently, this study used data from 1997 to 2015 for 16 EU countries to demonstrate how expenditure on research and development drives growth in the presence of renewable and nonrenewable energy consumption. Results from the Pool Mean Group Autoregressive distributive lag model (PMG-ARDL) revealed that in the short run, investment in research and development adversely affect growth prospect in the EU. However, in the long run, research-led growth is evident alongside energy consumption, although the latter outweighs the former. Additionally, result from Dumitrescu and Hurlin Panel Causality tests showed a feedback causality between energy consumption, research and expenditure and economic growth. The findings of this study make it essential for EU countries to boost spending on renewable energy sources. Additionally, EU countries should pay closer attention to investment in research and development in order to sustain the plan for long term advancement in sustainable power sources for feasible energy and economic development.

Item Type:Article
ISSN:0960-1481
Uncontrolled Keywords:Research and development expenditure; Renewable energy; Nonrenewable energy; Economic growth; Panel econometrics
Group:Faculty of Management
ID Code:34102
Deposited By: Unnamed user with email symplectic@symplectic
Deposited On:03 Jun 2020 15:43
Last Modified:16 Jun 2020 15:07

Downloads

Downloads per month over past year

More statistics for this item...
Repository Staff Only -