Influence of Renewable and Non-Renewable Energy on Economic Growth: An Empirical Study on 28 OECD Countries
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This study investigates the relationship between economic growth and renewable and non-renewable energy consumption. An empirical study has been carried out for 28 OECD countries by using annual data between 1990-2013. We used Pedroni and Fisher-Johansen cointegration and Granger causality tests. We also employed Pedroni FMOLS method to investigate coefficients of previously identified long term co-integration relationship. According to the results, we found long term co-integration relationship among the variables. From FMOLS test results, it is found that some OECD countries negatively affected from nonrenewable energy consumption. It is also ascertained from FMOLS results that, renewable energy consumption contributes to economic growth of 28 OECD countries.