Renewable electricity and economic growth relationship in the long run: Panel data econometric evidence from the OECD

Renewable electricity is a pillar of the sustainability transition being pursued through climate and energy policy strategies, European Green Deal represents potential investment plan for this new phase development. Economic growth can be influenced by expansion renewable consumption, but nature their relationship ambiguous depends on various economic factors. This paper investigates long-run between consumption in selected countries over period 1971–2015 using econometric panel data techniques that specifically address cross-country heterogeneity cross-sectional dependence. Our findings suggest that, average, there significant positive long-term growth, although Granger causality not detected. Regarding causality, we do find per capita to causal factor total fossil-fuel based consumption.