Role of Renewable Energy Consumption and Technological Innovation to Achieve Carbon Neutrality in Spain: Fresh Insights From Wavelet Coherence and Spectral Causality Approaches (original) (raw)
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International Journal of Energy Economics and Policy
The present study utilized continuous wavelet power range, and wavelet coherence power range estimations to analyze the relationship among renewable energy consumption, non-renewable energy consumption and environmental degradation by taking about quarterly data for the time of 1997(1) to 2017(4). Moreover, the consequences of wavelet coherence affirm that ENG and CO 2 emission have a bi-directional causal association with one another in the medium run and a uni-directional causal relationship where ENC is driving in a short run era. However, we found no proof of a causal relationship in a long and long run period. Finally, the aftereffects of wavelet coherence affirm that RENE and CO 2 emission have a bi-directional causal association with one another in short run and a uni-directional causal relationship where CO 2 emission is driving in medium run day and age. Nonetheless, we found a proof of a uni-directional causal relationship in a long and long run period where causality is running from renewable energy consumption to environmental degradation in Malaysia.
Renewable & Sustainable Energy Reviews, 2019
In this research, we aim at exploring the influence of renewables on industrial production (Ip) in the US by following continuous wavelet coherence and partial continuous wavelet coherence analyses. To this end, we observed the co-movements between, biofuels and Ip, solar and Ip, wind and Ip, geothermal and Ip, wood and Ip, and, waste and Ip in the US for the monthly period from January 1989 to November 2016. The primary motivations behind this research are twofold. Firstly, it attempts to reach the co-movements, if exists, between renewables' consumption and industrial production by following time domain and frequency domain analyses. Secondly, it aims at observing the potential co-movements between renewable energy sources (geothermal, solar, wind, biofuels, wood, and, waste) and Ip by adding some control variables (fossil fuels, total biomass etc.) into the wavelet models to understand clearly the responses of the industrial production to the impulses in renewables in both short term and long term periods. The paper hence eventually reveals significant effects of geothermal, wind, solar, biofuels, wood, and, waste on US industrial production in short term cycles and long term cycles. Thereby, following this paper's results of continuous wavelet analyses which depict the impact of renewables on US economy at 1-3-year frequency and 3-8-year frequency for the time period from January 1989 to November 2016, one might provide policy makers with relevant current and future efficient renewables' energy policy for the US and other countries which have similar structures with the US.
Environment, Development and Sustainability, 2021
With regard to environmental degradation in Japan, the world's third-largest economy, limited studies have been performed to illustrate the ecological aspects of the country's core and recent economic policies such as globalization, technological innovation, and renewable energy usage policies. Given this motivation, this research reveals a new perspective on the connection between CO 2 emissions and GDP growth, renewable energy, technological innovation and globalization in Japan by employing wavelet statistical tools. The paper employs series of wavelet tools for datasets covering the period from 1990Q1 to 2015Q4. The empirical outcomes demonstrate proof of the interaction between renewable energy use, economic growth, technological innovation, globalization and CO 2 emissions in both time and frequency. The empirical results of the wavelet analyses reveal that globalization, GDP growth, and technological innovation increase CO 2 emissions in Japan, while renewable energy usage mitigates CO 2 in the short and medium terms. The results demonstrate the significance of implementing policies effectively coordinated by the policymakers to curb the significant environmental degradation in Japan. Moreover, Japan should actively support renewable energy development and create a more competitive climate for investment in the renewable energy market.
Long-Term US Economic Growth and the Carbon Dioxide Emissions Nexus: A Wavelet-Based Approach
Sustainability
Economic growth has significantly boomed carbon emissions in the global economy. However, there is an ongoing debate about the economic growth–carbon emission nexus for various economies in the literature. This paper investigates the short/long-term causal information flow between fossil-fuel-related carbon dioxide emissions (CO2) and economic growth (GDP) in the US economy spanning from 1800 to 2014. Using wavelet-based-nonparametric Granger causality analysis, the empirical results indicate that (i) the long-run causal information flow running from GDP to CO2 is positive, strong, uninterrupted and concentrated since the 1990s; (ii) the reverse causality is positive but interrupted, short-term and intensifying during the early 1990s. Due to strong and very long-term unidirectional causality findings, economic growth leads to environmental deterioration. Hence, for policymakers, environment-based growth policies and structural reforms can foreshadow energy-efficient policies by limi...
Causality between energy consumption and GDP in the U.S.: evidence from wavelet analysis
Front. Energy, 2014
This study investigates the dynamic causal relationship between energy consumption and economic growth in the U.S. at different time scales. The main novelty of the study is that this paper complements the existing studies on the nexus between energy consumption and economic growth by employing the wavelet transformation to obtain different time scales in order to investigate causality between energy consumption and economic growth. This method is first developed by Ramsey and Lampart. Their approach consists of first decomposing the series into time scales by wavelet filters and testing causality of each time scale with the pertinent time scale of the other series separately. The data span from 1973q1 to 2012q1 on a quarterly basis. The main empirical insight is that the causal relationship is stronger at finer time scales, whereas the relationship is less and less apparent at longer time horizons. The results indicate that energy consumption causes economic growth, while the reverse is not true at the original frequency of the data. At the very finest scale the same result arises. However, at coarser scales feedback is observed. In particular, at intermediate time scales the evidence indicates that energy consumption causes economic growth, while the reverse is also true. These empirical findings are expected to be of high importance in terms of the effective design and implementation of energy and environmental policies, especially when a number of countries in the pursuit of high economic growth targets do not pay any serious attention on environmental issues.
International Journal of Renewable Energy Development, 2021
The study aims to explore the causal linkage between CO2 emissions, economic growth and energy consumption in Thailand utilizing the wavelet coherence approach, conventional Granger and the Toda-Yamamoto causality techniques. In this study, time-series data spanning the period between 1971 and 2018 were used. No prior study has used the wavelet coherence approach to collect information on the association and causal interrelationship among these economic variables at different frequencies and timeframes in Thailand. The study objectives are structured to answer the following question: Does economic growth and energy consumption lead to CO2 emissions in Thailand. The findings revealed that: (a) Changes in economic growth led to changes in CO2 emissions in Thailand at different frequencies (different scales) between 1971 and 2018. (b) A bidirectional causal relationship between CO2 emissions and energy consumption. (c) A positive correlation between CO2 emissions and energy usage in the short and long-run between 1971 and 2018. (d) A positive correlation between GDP growth and CO2 emissions in the short and long-run between 1971 and 2018. The study suggested that Thailand should initiate stronger policies towards enhancing the efficiency of energy and energy-usage programs to minimize unnecessary energy waste.
2021
This paper investigates the association between CO2 emissions and a range of factors, including electricity consumption, economic growth, urbanization, and trade openness for six Gulf Cooperation Council (GCC) countries using data covering the 1965-2019 period. Namely, Oman, Saudi Arabia, the UAE, Kuwait, Bahrain, and Qatar. Contrasting with the standard literature, our empirical strategy uses the wavelet coherence approach on the frequency domain, thought to complement the time-series econometric procedures reported on this topic. Supplied at the country-level, associated evidence presents far-reaching policy recommendations whose applications may directly benefit environmental planning and bring high information value for the sake of sustainable energies in the Gulf region.
Energy consumption and economic growth in Italy: A wavelet analysis
Energy Reports, 2021
This paper investigates the relationship between energy consumption and economic growth with over eighty decades of Italian dataset. The wavelet analysis is applied to decompose series into different time scales whereas the frequency domain technique is used to examine time-specific shocks. Results of both unit root and stationarity tests indicate all series are integrated of order one, however, no evidence of long-run relationship is reported between energy consumption and economic development. We observe that the causal flow from economic growth to energy consumption becomes dominant at lower scales (up to 4 years), while at higher scales the strength of causality from energy use to growth declines. Therefore, the influence of energy consumption on economic growth can significantly be detected only at lower scales. If only original series and lower scales are considered, causal findings lean towards the feedback mechanism, with bidirectional causal relationship. This bidirectional causality is reinforced at all frequency bands, thus, causality from energy consumption to economic growth is observed only at frequencies between 1.3-1.8 (3.49-4.83 years) and 2.2-2.4 (2.61-2.85 years). However, when higher scales are considered, the causality test results are in line with the conservation hypothesis. More precisely, causality from economic growth to energy consumption is reinforced by frequency technique at higher time scales (8-32 years) but only at a frequency more than 0.6 (more than 10.47 years). The differences in the applied results provide alternative policy implications, justifying the use of wavelet approach to decompose time series into various time scales.
Environmental Science and Pollution Research, 2020
This paper presents a fresh understanding of the vigorous connection between inward FDI, renewable energy consumption, economic growth and carbon emission in the Chinese economy employing novel Morlet wavelet analysis. Wavelet correlation, continuous wavelet transform and partial and the multiple wavelet coherence analyses are applied on variables under study for data acquired during the period 1979 to 2017. The outcome of these analyses reveals that the connections among the variables progress over frequency and time. From the frequency domain point of view, the current study discovers noteworthy wavelet coherence and robust lead and lag linkages, although time domain reveals inconsistent associations among the considered variables. The wavelet analysis according to economic point of view supports that inward foreign direct investment (FDI) and renewable energy consumption help to enhance economic condition in Chinese economy. The results also suggested that inward FDI enhances the environmental degradation in medium and long run in China. The results emphasize the significance of having organized strategies by the policymakers to cope with huge environmental degradation occurred for a couple of decades in China.