We study transitions between nonrenewable and renewable energy forms at different development stages of an economy. It is shown that in the historical context the emphasis difference between renewable and nonrenewable resources pdf energy production may evolve from renewables to nonrenewables and back to renewables. Typically both energy forms are used simultaneously.
Along the equilibrium path, nonrenewable resource consumption may increase and their price decrease. An inverted-U relation between carbon emissions and income level may follow even without environmental policy. Check if you have access through your login credentials or your institution. Estimate the impact of electricity generation on economic growth. Find that renewable and nonrenewable electricity generation have positive impacts.
Transmission and distribution losses negatively impact economic growth. The paper makes several contributions. Because of transmission and distribution losses, and theft, not all the electricity that is generated is eventually consumed, making it necessary to investigate the impact of electricity generation on growth. Second, we disentangle the impact of total electricity generation on growth into renewable and nonrenewable effects. With increasing pursuit of energy security, technological advances, the falling costs of renewables, and the movement to exploit renewable energy sources for electrification, there is need to study not only the impact of traditional sources of electricity but renewable sources, as well. Given that electricity generation and many of the other regressors in our model may be jointly determined with GDP growth, the System GMM approach is appropriate to deal with these endogeneity issues.