Does Renewable Energy Increase Growth? Evidence from EU-19 Countries

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Abstract
The relationship between renewable energy consumption and economic growth has constituted a substantial field of research. Particularly, examining the significance of causality direction between the two variables is of high significance, since it may provide valuable insights for policy-makers. In this study the causality between renewable energy consumption and economic growth was investigated for 19 EU countries by using Rolling Windows Granger Causality Test for the 1994-2015 periods. Empirical findings show that renewable energy consumption Granger caused economic growth at 2001, 2002, 2003 and 2014 years. Economic growth Granger cause renewable energy consumption at 2004, 2005 and 2007 years. As can be understood from the results, the direction of the causality relationship between variables changes in different time periods. Empirical results have important policy implications for EU-19 Countries.Keywords: Economic Growth, Renewable Energy Consumption, Europe UnionJEL Classifications: O47, O13, O52DOI: https://doi.org/10.32479/ijeep.7589

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