International Journal of Business Ethics in Developing Economies

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Decarbonising EconomicGrowth through Innovations in Renewable Energy


Affiliations
1 Assistant Professor, Department of Economics, Daulat Ram College, University of Delhi, New Delhi, India
2 Associate Professor, Department of Commerce, Daulat Ram College, University of Delhi, New Delhi, India
     

   Subscribe/Renew Journal


With the emerging consciousness of climate change and focus on climate-resilient growth across all developing nations, Brazil has proved to be a benchmark for the energy transition to an environmentally sustainable energy system. All the developing countries are heading towards decarbonised growth using alternative sources of energy. As a result, the paper explores the causal relationship between renewable energy consumption and economic growth in the case of Brazil, using the data for the last 12 years. The Granger causality test is performed to comprehend the relationship between the three crucial indicators of the newly emerging growth models. The paper examines the interdependence of renewable energy and economic growth using the Granger causality test to estimate two-way dependence in BRICS countries. The paper exhibits the evidence of one-sided long-run causality between the use of renewable energy and per capita GDP, concluding that the deployment of renewable energy Granger causes per capita GDP growth. The results of Granger causality and correlations further provide an adequate rationale for the state to invest in renewable energy technologies and innovations. In this backdrop, the paper attempts to analyse India’s green growth compared to Brazil in the last 15 years.

Keywords

Climate Change, Renewable Energy, Economic Growth, Human Capital, R&D, BRICS
Subscription Login to verify subscription
User
Notifications
Font Size


  • Ahmed, M. M., & Shimada, K. (2019). The effect of renewable energy consumption on sustainable economic development: Evidence from emerging and developing economies. Energies, 12(15), 2954.

  • Apergis, N. (2010). On the causal dynamics between emissions, nuclear energy, renewable energy, and economic growth. Ecological Economics, 2255-2260.

  • Apergis, N., & Danuletiu, D. C. (2014). Renewable energy and economic growth: Evidence from the sign of panel long-run causality. International Journal of Energy Economics and Policy, 4(4), 578-587.

  • Apergis, N., & James, E. P. (2010). Renewable energy consumption and economic growth: Evidence from a panel of OECD countries. Energy Policy, 38(1), 656-660.

  • Arango-Miranda, R., Hausler, R., Romero-Lopez, R., Glaus, M., & Ibarra-Zavaleta, S. P. (2018). Carbon dioxide emissions, energy consumption and economic growth: A comparative empirical study of selected developed and developing countries. “The role of exergy”. Energies, 11(10), 2668.

  • Armeanu, D. Ş., Vintilă, G., & Gherghina, Ş. C. (2017). Does renewable energy drive sustainable economic growth? Multivariate panel data evidence for EU-28 countries. Energies, 10(3), 381.

  • Becketti, S. (2013) Introduction to time series using Stata. College Station: Stata Press.

  • Blazejczak, J. (2014). Economic effects of renewable energy expansion: A model-based analysis for Germany. Renewable and Sustainable Energy Reviews, 40, 1070-1080.

  • Crocitti, J. J., & Vallance, M. M. (2011). Brazil today: An encyclopaedia of life in the republic (p. 23). South Dakota State University. ISBN: 978-0-313-34673-6.

  • Dickey, D. A., & Wayne, A. F. (1979). Distribution of the estimators for autoregressive time series with a unit root. Journal of the American Statistical Association, 74(366a), 427-431.

  • Gómez, M., Ciarreta, A., & Zarraga, A. (2018). Linear and nonlinear causality between energy consumption and economic growth: The case of Mexico 1965-2014.Energies, 11(4), 784.

  • Hu, Y., Guo, D., Wang, M., Zhang, X., & Wang, S. (2015).The relationship between energy consumption and economic growth: Evidence from China’s industrial sectors. Energies, 8(9), 9392-9406.

  • IEA, OECD. (2012). World energy outlook 2012. Vienna: IEA.

  • Lutz, C., Lehr, U., & Pehnt, M. (2012). Economic impacts of energy efficiency and renewable energy in Germany.Abstract for the 20th International Input-Output Conference.

  • Maji, I. K. (2015). Does clean energy contributes to economic growth? Evidence from Nigeria. Energy Reports, 1, 145-150.

  • Menyah, K., & Wolde-Rufael, Y. (2010). Energy consumption, pollutant emissions and economic growth in South Africa. Energy Economics, 32(6), 1374-1382.

  • Piłatowska, M., Geise, A., & Włodarczyk, A. (2020). The effect of renewable and nuclear energy consumption on decoupling economic growth from CO2 emissions in Spain. Energies, 13(9), 2124.

  • Renewable Energy Policy Brief Brazil. (2015, June). IRENA.

  • Roehrkasten, S. (2015). Global governance on renewable energy (173-116). Springer Fachmedien Wiesbaden.

  • Sengupta, R. (2015). High economic growth, equity and sustainable energy development of India. Discussion Paper Series 213, Research Institute for Economics & Business Administration, Kobe University.

  • Simsek, H. A., & Simsek, N. (2013). Recent incentives for renewable energy in Turkey. Energy Policy, 63, 521-530.

  • Vlahinić-Dizdarević, N., & Žiković, S. (2010). The role of energy in economic growth: The case of Croatia. Zbornik Radova Ekonomskog Fakultet au Rijeci, 28(1), 35-60.


Abstract Views: 98

PDF Views: 0




  • Decarbonising EconomicGrowth through Innovations in Renewable Energy

Abstract Views: 98  |  PDF Views: 0

Authors

Pooja Sharma
Assistant Professor, Department of Economics, Daulat Ram College, University of Delhi, New Delhi, India
Sunita Gupta
Associate Professor, Department of Commerce, Daulat Ram College, University of Delhi, New Delhi, India

Abstract


With the emerging consciousness of climate change and focus on climate-resilient growth across all developing nations, Brazil has proved to be a benchmark for the energy transition to an environmentally sustainable energy system. All the developing countries are heading towards decarbonised growth using alternative sources of energy. As a result, the paper explores the causal relationship between renewable energy consumption and economic growth in the case of Brazil, using the data for the last 12 years. The Granger causality test is performed to comprehend the relationship between the three crucial indicators of the newly emerging growth models. The paper examines the interdependence of renewable energy and economic growth using the Granger causality test to estimate two-way dependence in BRICS countries. The paper exhibits the evidence of one-sided long-run causality between the use of renewable energy and per capita GDP, concluding that the deployment of renewable energy Granger causes per capita GDP growth. The results of Granger causality and correlations further provide an adequate rationale for the state to invest in renewable energy technologies and innovations. In this backdrop, the paper attempts to analyse India’s green growth compared to Brazil in the last 15 years.

Keywords


Climate Change, Renewable Energy, Economic Growth, Human Capital, R&D, BRICS

References