Renewable and Non-Renewable Energy Consumption and Its Impact on Economic Growth

Hosein Mohammadi, Sayed Saghaian, Bahareh Zandi Dareh Gharibi

Research output: Contribution to journalArticlepeer-review

7 Scopus citations


Energy is an important factor in boosting and sustaining the economic growth level of a country. The aim of this study was to investigate the relationship between energy consumption and the economic growth of selected developed and developing countries from 1993–2019. For this purpose, we used the Pedroni co-integration method to determine the long-term relationship between economic growth and energy consumption. To estimate the long-term parameters, the panel fully modified OLS method and the Dumitrescu and Hurlin heterogeneous panel causality estimation technique were used, and the causality direction between variables was considered. The results showed that energy consumption had a positive and significant effect on the economic growth of both groups of countries. The causality analysis revealed the existence of a protection effect between renewable energy consumption and economic growth in developed countries. Hence, policies that lead to an increase in independent growth in these countries can effectively impact their growth. On the other hand, the existence of the feedback effect in developing countries shows that storage policies and reduced energy consumption may pose a threat to economic growth in these countries.

Original languageEnglish
Article number3822
JournalSustainability (Switzerland)
Issue number4
StatePublished - Feb 2023

Bibliographical note

Publisher Copyright:
© 2023 by the authors.


  • economic growth
  • non-renewable energy consumption
  • renewable energy consumption
  • sustainability

ASJC Scopus subject areas

  • Computer Science (miscellaneous)
  • Geography, Planning and Development
  • Renewable Energy, Sustainability and the Environment
  • Building and Construction
  • Environmental Science (miscellaneous)
  • Energy Engineering and Power Technology
  • Hardware and Architecture
  • Computer Networks and Communications
  • Management, Monitoring, Policy and Law


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