Renewable and Nonrenewable Energy Consumption, Economic Growth, and Emissions: International Evidence

Abstract

This study aims to reexamine how energy consumption interacts with economic growth and emissions using a panel data of a global sample consisting of 102 countries, from 1996 to 2012. The effects of renewable energy and nonrenewable energy sources are separately examined. The consumption of both renewable and nonrenewable energy appears to have contributed significantly to the level of income across countries, implying that promoting renewable energy benefits economic development. The empirical evidence suggests that the use of non-renewable energy consumption significantly raised the level of emissions across different income groups of countries. On the other hand, our findings suggest that the use of renewable energy sources helped tackle emissions in developed countries but not in developing countries. The success of developed countries in controlling emissions through renewable energy has significant policy implications for developing countries.