Renewable, non-renewable energy consumption and economic growth nexus in G7: fresh evidence from CS-ARDL

This study investigates the effects of renewable energy (REN) consumption and non-renewable (NREN) on economic growth in G7 countries with annual data covering period 1980–2016 using a new panel estimator that provides robust results under cross-sectional dependence, slope heterogeneity, can be used whether series are integrated different orders. In addition, causality between variables is analyzed bootstrap Granger method takes dependency heterogeneity into account. According to Cross-sectionally Augmented Autoregressive Distributed Lag (CS-ARDL) results, coefficients REN NREN positive statistically significant both short- long-run. Furthermore, has greater impact enhancing than consumption. The analysis reveals hypothesis (GH) valid Canada, Italy, USA; neutrality France, Japan, UK; feedback (FE) for only Germany. For NREN, GH Germany; conservation (CH) Italy UK. Finally, FH Japan USA.