The Relationship between Non-Renewable Energy Consumption and Economic Growth: A Regional Analysis of European Continent

Abstract

This study aims to examine the relationship between the non-renewable energy consumption of the countries and their economic status since energy consumption and production appear to be interconnected phenomena. This study analyses the Eastern, Middle, North, South, and Western regions of the European continent from 1990 to 2014. To the best of our knowledge, this is the first paper to analyze the relationship between non-renewable energy consumption and economic growth in the European continent by region. The study adopts a panel causality process to examine the relationship between two phenomena. According to the empirical analyses, there is bidirectional causality between non-renewable energy consumption and economic growth in Eastern, Middle, North, and South European regions whereas a unidirectional relationship from non-renewable energy consumption to economic growth in the Western. Non-renewable energy consumption and economic growth are still interconnected phenomena in the European countries even though climate concerns, environmental precautions, and promotion to reduce unsustainable production.

Keywords

• yenilenemeyen enerji
• ekonomik büyüme
• avrupa kıtası
• panel nedensellik analizi
• non-renewable energy
• economic growth
• european continent
• panel causality analysis