The renewable energy and economic growth nexus in Black Sea and Balkan countries
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The aim of this study is to explore the relationship between renewable energy consumption and economic growth within the framework of traditional production function for the period of 1990-2012 in 9 Black Sea and Balkan countries. For this purpose, we use Pedroni (1999, 2004) panel cointegration, Pedroni (2000, 2001) co-integration estimate methods and Dumitrescu and Hurlin (2012) heterogeneous panel causality estimation techniques. The study has concluded that there is a long term balance relationship between renewable energy consumption and economic growth and renewable energy consumption has a positive impact on economic growth. Heterogeneous panel causality analysis results support growth hypothesis in Bulgaria, Greece, Macedonia, Russia and Ukraine; feedback hypothesis in Albania, Georgia and Romania; neutrality hypothesis in Turkey and according to the panel data set including all nine countries the results support feedback hypothesis. With the findings, it was concluded that there is a significant impact of renewable energy consumption on economic growth in Balkan and Black Sea Countries.