Study of Mediated Consumption Effect of Renewable Energy on Economic Growth of OECD Countries

Abstract

The present study aims to investigate on the impact of the renewable energy intermediate consumption on the economic growth of OECD countries. The data are from the energy balance sheet of all OECD countries during 1990-2012. The time series linear pattern has been used to have estimation. With studying Johansen Cointegration Test and ARDL model, it can be concluded that increasing the renewable energy consumption leads to economic growth increase in these countries. In other word that increasing the renewable energy consumption, the efficiency of the energies is increasing and leads to a high economic growth. Also, a development in technology can be resulted in a higher economic growth of those countries.