Clean energy, non-clean energy, and economic growth in the MIST countries

Hsiao-Tien Pao*, Yi Ying Li, Fu Hsin-Chia Fu

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

54 Scopus citations

Abstract

This paper explores the causal relationship between clean (renewable/nuclear) and non-clean energy consumption and economic growth in emerging economies of the MIST (Mexico, Indonesia, South Korea, and Turkey) countries. The panel co-integration tests reveal that there is a long-term equilibrium relationship among GDP, capital formation, labor force, renewable/nuclear, and fossil fuel energy consumption. The panel causality results indicate that (1) there is a positive unidirectional short-run causality from fossil fuel energy consumption to economic growth with a bidirectional long-run causality; (2) there is a unidirectional long-run causality from renewable energy consumption to economic growth with positive bidirectional short-run causality, and a long-run causality from renewable to fossil fuel energy consumption with negative short-run feedback effects; and (3) there is a bidirectional long-run causality between nuclear energy consumption and economic growth and a long-run causality from fossil fuel energy consumption to nuclear energy consumption with positive short-run feedback effects. These suggest that MIST countries should be energy-dependent economies and that energy conservation policies may depress their economic development. However, developing renewable and nuclear energy is a viable solution for addressing energy security and climate change issues, and creating clean and fossil fuel energy partnerships could enhance a sustainable energy economy.

Original languageEnglish
Pages (from-to)932-942
Number of pages11
JournalEnergy Policy
Volume67
DOIs
StatePublished - 1 Apr 2014

Keywords

  • Clean energy consumption
  • MIST Countries
  • Panel causality

Fingerprint Dive into the research topics of 'Clean energy, non-clean energy, and economic growth in the MIST countries'. Together they form a unique fingerprint.

Cite this