The Impact of Renewable and Non-Renewable Energies Consumption on Economic growth in D-8 group countries

According to the importance of clean energies in the reduction of greenhouse gas emission and environmental damage, in the present study, the impact of renewable energy consumption on economic growth in the D-8 group countries was investigated over the period of 1990 to 2014. According to the panel stationary property of the variables, the panel autoregressive distributed lag method (Panel ARDL) of mean group (MG), pooled mean group (PMG), and dynamic fixed effect (DFE) estimators were investigated. The empirical results implied that the pooled mean group model emerged as the most efficient among the three estimators. The results of causality tests indicate that there is a bidirectional causality relationship among clean energy (renewable), non-renewable energy, and economic growth in D-8 group countries. The results show that controlling for the other variables, a 1% rise in clean energy causes is likely to cause a 0.15% increase in economic growth in the long-run. Also, the results showed that in the long-run, a 1% increase in non-renewable energy will decrease the economic growth of D-8 group countries by 0.12%. Also, empirical results indicate that investment, employment and technology have a significant and positive effect on economic growth in long run. According to the results of present study, clean energy production and consumption must be increased in the D-8 countries