The Nexus between Renewable Energy, Economic Growth, and Carbon Dioxide Emissions: Evidence from MS-VAR and MS-Granger Causality Methods
This study aims to examine the dynamic relationship between carbon dioxide (CO2) emissions, renewable energy consumption, and economic growth in Denmark, Sweden, and Chile. These countries were not randomly selected. They were chosen since they have the highest scores according to the Climate Change...
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Ekonomi ve Finansal Araştırmalar Derneği
2024-12-01
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| Series: | Ekonomi, Politika & Finans Araştırmaları Dergisi |
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| Online Access: | https://dergipark.org.tr/tr/download/article-file/4065373 |
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| author | Ayça Büyükyılmaz Ercan Metehan Ercan |
| author_facet | Ayça Büyükyılmaz Ercan Metehan Ercan |
| author_sort | Ayça Büyükyılmaz Ercan |
| collection | DOAJ |
| description | This study aims to examine the dynamic relationship between carbon dioxide (CO2) emissions, renewable energy consumption, and economic growth in Denmark, Sweden, and Chile. These countries were not randomly selected. They were chosen since they have the highest scores according to the Climate Change Performance Index (2023). In addition, Markov-switching vector autoregressive (MS-VAR) and Markov-switching Granger (MS-Granger) causality methods are applied to the annual data of the three countries over the period 1971–2021. Contrary to linear methods, MS-VAR and MS-Granger causality approaches allow us to estimate and interpret this relationship for different regimes, such as recession and expansion. These methods also provide insights into the likelihood and duration of the persistence of the current economic regime. The empirical results show that there is a two-way MS-Granger causality between renewable energy consumption and economic growth in all regimes for the three countries except for moderate and high expansion regimes for Chile. Moreover, in general, there is a two-way MS-Granger causality between economic growth and CO2 emissions in all regimes. Furthermore, the findings from the estimated models indicate that there is a two-way MS-Granger causality between renewable energy consumption and CO2 emissions in general, except for the second regime for Chile. |
| format | Article |
| id | doaj-art-25328c74e67c40349acea974f5b338b9 |
| institution | Kabale University |
| issn | 2587-151X |
| language | English |
| publishDate | 2024-12-01 |
| publisher | Ekonomi ve Finansal Araştırmalar Derneği |
| record_format | Article |
| series | Ekonomi, Politika & Finans Araştırmaları Dergisi |
| spelling | doaj-art-25328c74e67c40349acea974f5b338b92025-01-03T21:46:06ZengEkonomi ve Finansal Araştırmalar DerneğiEkonomi, Politika & Finans Araştırmaları Dergisi2587-151X2024-12-019467869910.30784/epfad.1514985957The Nexus between Renewable Energy, Economic Growth, and Carbon Dioxide Emissions: Evidence from MS-VAR and MS-Granger Causality MethodsAyça Büyükyılmaz Ercan0https://orcid.org/0000-0001-5392-0722Metehan Ercan1https://orcid.org/0000-0002-2905-2037AKDENIZ UNIVERSITYAKDENIZ UNIVERSITYThis study aims to examine the dynamic relationship between carbon dioxide (CO2) emissions, renewable energy consumption, and economic growth in Denmark, Sweden, and Chile. These countries were not randomly selected. They were chosen since they have the highest scores according to the Climate Change Performance Index (2023). In addition, Markov-switching vector autoregressive (MS-VAR) and Markov-switching Granger (MS-Granger) causality methods are applied to the annual data of the three countries over the period 1971–2021. Contrary to linear methods, MS-VAR and MS-Granger causality approaches allow us to estimate and interpret this relationship for different regimes, such as recession and expansion. These methods also provide insights into the likelihood and duration of the persistence of the current economic regime. The empirical results show that there is a two-way MS-Granger causality between renewable energy consumption and economic growth in all regimes for the three countries except for moderate and high expansion regimes for Chile. Moreover, in general, there is a two-way MS-Granger causality between economic growth and CO2 emissions in all regimes. Furthermore, the findings from the estimated models indicate that there is a two-way MS-Granger causality between renewable energy consumption and CO2 emissions in general, except for the second regime for Chile.https://dergipark.org.tr/tr/download/article-file/4065373ms-varms-granger nedensellikyenilenebilir enerjikarbondioksit emisyonlarıekonomik büyümerejim değişimims-varms-granger causalityrenewable energycarbon dioxide emissionseconomic growthregime switching |
| spellingShingle | Ayça Büyükyılmaz Ercan Metehan Ercan The Nexus between Renewable Energy, Economic Growth, and Carbon Dioxide Emissions: Evidence from MS-VAR and MS-Granger Causality Methods Ekonomi, Politika & Finans Araştırmaları Dergisi ms-var ms-granger nedensellik yenilenebilir enerji karbondioksit emisyonları ekonomik büyüme rejim değişimi ms-var ms-granger causality renewable energy carbon dioxide emissions economic growth regime switching |
| title | The Nexus between Renewable Energy, Economic Growth, and Carbon Dioxide Emissions: Evidence from MS-VAR and MS-Granger Causality Methods |
| title_full | The Nexus between Renewable Energy, Economic Growth, and Carbon Dioxide Emissions: Evidence from MS-VAR and MS-Granger Causality Methods |
| title_fullStr | The Nexus between Renewable Energy, Economic Growth, and Carbon Dioxide Emissions: Evidence from MS-VAR and MS-Granger Causality Methods |
| title_full_unstemmed | The Nexus between Renewable Energy, Economic Growth, and Carbon Dioxide Emissions: Evidence from MS-VAR and MS-Granger Causality Methods |
| title_short | The Nexus between Renewable Energy, Economic Growth, and Carbon Dioxide Emissions: Evidence from MS-VAR and MS-Granger Causality Methods |
| title_sort | nexus between renewable energy economic growth and carbon dioxide emissions evidence from ms var and ms granger causality methods |
| topic | ms-var ms-granger nedensellik yenilenebilir enerji karbondioksit emisyonları ekonomik büyüme rejim değişimi ms-var ms-granger causality renewable energy carbon dioxide emissions economic growth regime switching |
| url | https://dergipark.org.tr/tr/download/article-file/4065373 |
| work_keys_str_mv | AT aycabuyukyılmazercan thenexusbetweenrenewableenergyeconomicgrowthandcarbondioxideemissionsevidencefrommsvarandmsgrangercausalitymethods AT metehanercan thenexusbetweenrenewableenergyeconomicgrowthandcarbondioxideemissionsevidencefrommsvarandmsgrangercausalitymethods AT aycabuyukyılmazercan nexusbetweenrenewableenergyeconomicgrowthandcarbondioxideemissionsevidencefrommsvarandmsgrangercausalitymethods AT metehanercan nexusbetweenrenewableenergyeconomicgrowthandcarbondioxideemissionsevidencefrommsvarandmsgrangercausalitymethods |