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Green Economics
Article . 2024 . Peer-reviewed
Data sources: Crossref
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THE IMPACT OF RENEWABLE AND NON-RENEWABLE ENERGY CONSUMPTION ON ECONOMIC GROWTH IN AZERBAIJAN: FB-ARDL AND A-ARDL COINTEGRATION APPROACHES

Authors: Ilaha Aghayeva;

THE IMPACT OF RENEWABLE AND NON-RENEWABLE ENERGY CONSUMPTION ON ECONOMIC GROWTH IN AZERBAIJAN: FB-ARDL AND A-ARDL COINTEGRATION APPROACHES

Abstract

The objective of this study is to examine the impact of renewable and non-renewable energy consumption on economic growth in Azerbaijan. It is believed that this study will contribute to the literature by using Fourier ADF, Fourier Bootstrap ARDL and Augmented ARDL methods for the first time in this context. The stationarity of the variables was first tested using ADF, Fractional Fourier ADF, Flexible Fractional Fourier ADF and single structural breakpoint ZA stationarity tests, which revealed different degrees of stationarity of the variables. The cointegration relationship between the variables was first examined using the Fourier Bootstrap ARDL bound test, which found no evidence of cointegration. Subsequently, the Augmented ARDL bounds test was used to examine the cointegration relationship between the variables, which revealed a long-run equilibrium relationship. FMOLS, DOLS and CCR long-run estimation methods were used to examine the impact of renewable and non-renewable energy consumption on economic growth and according to the results of all three methods, both renewable and non-renewable energy consumption contribute to the growth of the Azerbaijani economy. Holding other variables constant, a 1% increase in non-renewable energy consumption leads to a 3.28% increase in economic growth. Holding other variables constant, a 1% increase in renewable energy consumption leads to a 1.29% increase in economic growth. The study concludes with policy recommendations for the Azerbaijani economy based on the econometric results.

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
2
Top 10%
Average
Average
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