Relationship between biomass energy and economic growth in transition countries: panel ARDL approach


Bildirici M. E.

GLOBAL CHANGE BIOLOGY BIOENERGY, vol.6, no.6, pp.717-726, 2014 (Journal Indexed in SCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 6 Issue: 6
  • Publication Date: 2014
  • Doi Number: 10.1111/gcbb.12092
  • Title of Journal : GLOBAL CHANGE BIOLOGY BIOENERGY
  • Page Numbers: pp.717-726
  • Keywords: biomass energy, economic growth, granger causality, panel ARDL, pedroni co-integration, RENEWABLE ENERGY, ELECTRICITY CONSUMPTION, COINTEGRATION, TESTS, NEXUS, GNP

Abstract

In this study, we have investigated the co-integration and causality relationship between the biomass energy consumption and economic growth in the transition countries by the Panel Auto Regressive Distributed Lag (ARDL) method and Pedroni co-integration analysis for 1990-2011. Analysed countries are gathered under two groups. For Groups 1 and 2, Pedroni panel co-integration test and ARDL bound test results show that biomass energy consumption and economic growth are co-integrated. Fully modified ordinary least squares results suggested that biomass energy consumption has positive effect on the economic growth.