Do fiscal incentive policies impact the installed capacity of renewable energy? An empirical evidence from Latin American countries

The impact of fiscal incentive policies on the installed capacity of renewable energy was examined in thirteen Latin American countries, over the period of 1980 to 2014. The Autoregressive Distributed Lag (ARDL) methodology was used to decompose the total effect of fiscal incentive policies on installed capacity in its short- and long-run components. The results showed that the fiscal incentive policies in short-run do not cause any impact on the installed capacity of renewable energy, due to the possible inefficiency of these policies, while in long-run, the fiscal incentives stimulate the investments in renewable energy in 0.8977 %. The economic growth of Latin American countries and economic growth of China in the short-run have a positive impact of 3.1564 %, and 5.2724 % respectably, while in long-run exerts a positive influence of 2.4934 % and 1.0498 %. The results of this article point to the necessity to create more fiscal incentive policies in order to promote the investments in renewable energy sources, to foster the economy of countries or specific regions, as well as generate income, and also increases the consumption of alternative sources

The Hydroelectricity Consumption and Economic Growth Nexus: A Long Time Span Analysis

The objective of this article is analyze the nexus between hydroelectricity consumption and economic growth in seven Latin America countries in the period from 1966 to 2015, using an auto-regressive distributive lag (ARDL) with methodology. The results suggest the existence of feedback hypothesis in short-run, where the hydroelectricity consumption and economic growth are interrelated

The Impact of Renewable Energy Policies on Carbon Dioxide Emissions in the Latin American countries-A PVAR approach

This article analyzes the impact of renewable energy policies on carbon dioxide emissions (CO2) in nine Latin American countries, in a period of 1991 to 2012. The Panel Vector Auto-Regressive (PVAR) was utilized. The results revealed that the renewable energy policies reduce the environmental degradation (CO2 emissions) in -0.0109, and the consumption of renewable energy -0.0231, while the economic growth and consumption oil increase the emissions in 0.9082 and 0.1437 respectively. These empirical findings will help the policymakers develop appropriate renewable energy policies, as well as help to advance the literature that approaches the impact of renewable energy policies on environmental degradation in the Latin America region

THE POSITIVE INFLUENCE OF URBANIZATION ON ENERGY CONSUMPTION IN LATIN AMERICAN COUNTRIES: AN APPROACH WITH ARDL AND NARDL MODELING

The impact of urbanization on energy consumption was investigated in eight Latin American countries from 1970 to 2015. The Autoregressive Distributed Lag (ARDL) in the form of Unrestricted Error Correction Model (UECM) to decompose the total effect of variables into it is short- and long-run components, and the Non-Linear Autoregressive Distributed Lag (NARDL) to examine the asymmetric responses of variables were applied. The results of preliminary tests indicated the existence of low multicollinearity, and existence of cross-section dependence. The results showed that in the ARDL model the economic growth in the short-and long-run increase the energy consumption, and the variable urbanization in the short-and long-run have a positive impact on energy used. Furthermore, the outcomes of NARDL model showed that in the short-and long-run asymmetric responses the economic growth (positive/negative asymmetric) have a positive impact on energy. The variable urbanization in the short-and long-run have a positive on energy consumption. Moreover, the specification tests showed the presence of cross-section dependence, the first-order autocorrelation, the heteroscedasticity in the residuals, and the first-order correlation in the disturbance, and serial correlation in the disturbance. Finally, this study points to the necessity to creates conservation policies oriented to reduces the energy consumption, with the introduction of new technologies that reduces the energy consumption in the industries and households, change the current energy matrix to a more sustainable

The Case of Latin American Countries

This dissertation examines the impact of renewable energy policies on carbon dioxide emissions in Latin America region. Ten countries were analyzed in a period from 1991 to 2012, utilizing the methodology of autoregressive panel with distributed lag to decompose the total effect in their repercussions in the short- and long-run. The presence of cross-sectional dependence confirms that Latin American countries share spatial patterns, as well as, the heteroskedasticity, contemporaneous correlation, and first order autocorrelation cross-sectional dependence were identified. Considering this violations, the robust dynamic Driscoll-Kraay estimator with fixed effects that is robust to these phenomena was used. In the same way, it was observed that the primary energy consumption per capita contributes in both the short- and long-run, to increase in carbon dioxide emissions. The research proved that the number of renewable energy policies in the long-run, and renewable electricity generation per capita both in the short-and long-run, contribute to mitigate per capita carbon dioxide emissions.Esta dissertação examina o impacto das políticas de energias renováveis nas emissões de dióxido de carbono na região da América Latina. Foram analisados, dez países no período compreendido entre 1991 a 2012, utilizando como metodologia o modelo auto-regressivo, com desfasamentos distribuídos, para decompor o efeito total e as suas repercussões a curto e longo prazo. Foi detetada a presença da dependência transversal, confirmando que estes países compartilham os mesmos padrões espaciais, bem como a presença de heterocedasticidade, correlação contemporânea e autocorrelação de dependência transversal de primeira ordem. Tendo em atenção estas infrações, foi utilizado o estimador dinâmico Driscoll-Kraay, com efeitos fixos, que é robusto a estes fenómenos. De igual modo, se observou que o consumo de energia primária per capita, contribui, tanto a curto como a longo prazo, para o aumento das emissões de dióxido de carbono. A pesquisa comprovou que o número de políticas e a geração a geração de energias renováveis contribuem para mitigar as emissões de dióxido de carbono

The Negative Impact of Renewable Energy Consumption on Carbon Dioxide Emissions: An empirical evidence from South American Countries

The impact of renewable energy consumption on the carbon dioxide emissions was analyzed for a panel of ten South American countries in a period from 1980 to 2012. The Autoregressive r to decompose the total effect of renewable energy consumption on the carbon dioxide emissions in its short- and long-run components. The results indicate that the consumption of renewable energy reduce the carbon dioxide emissions in -0.0420 % when the consumption of alternative sources increases in 1% in short-run. Keywords: Renewable energy, environmental, energy economics, econometric.

Exploring the causality between economic growth, financial development and inflation in sixteen high-income countries

This paper examined the relationship between economic growth, inflation, stock market development, and banking sector development for a panel of sixteen high-income countries for the period from 2001 to 2016, by using the mechanism impulse response functions and Granger causality tests derived from a panel vector autoregressive model. The evidence of bidirectional causality between all variables in the model was found. Overall, feedback and supply-leading theories have been confirmed in the literature. A plus sign in the relationship between the development of the banking sector and the stock market with economic growth was found. Therefore, stock market development and banking sector development stimulate the economy

Exploring the causality between economic growth, financial development and inflation in sixteen high-income countries

This paper examined the relationship between economic growth, inflation, stock market development, and banking sector development for a panel of sixteen high-income countries for the period from 2001 to 2016, by using the mechanism impulse response functions and Granger causality tests derived from a panel vector autoregressive model. The evidence of bidirectional causality between all variables in the model was found. Overall, feedback and supply-leading theories have been confirmed in the literature. A plus sign in the relationship between the development of the banking sector and the stock market with economic growth was found. Therefore, stock market development and banking sector development stimulate the economy

The Impact of Wind Power Consumption on the Labor Market- A study of Ten Europe Union Member Countries

The impact of wind power consumption on the labor market was analyzed for a panel of ten European Union countries in a period from 1990 to 2015. The Autoregressive Distributed Lag Methodology was used in order to decompose the total effect of wind power consumption on the labor market in its short- and long-run components. The empirical results indicate that wind power consumption has a positive impact of 0.0191 on the labor market, and oil consumption does not cause any impact whatsoever.

The Reaction of the Consumption of Fossil Fuels to Trade Openness in Latin America & the Caribbean Countries

This article investigates the impact of trade openness and renewable energy on the consumption of fossil fuels for a panel of fourteen LAC countries over the period from 1990 to 2014. To this end, a PARDL model in unrestricted error-correction form is estimated, and robustness checks are performed by estimating a PNARDL model. The results of the PARDL model point indicate that the impact of economic growth and elasticity of trade openness are statistically significant at the 1% level and contribute to increased consumption of fossil fuels in the LAC countries. However, the impact and elasticity of consumption of renewable energy are statistically significant at 1% and 5% levels and thus contribute to decreasing consumption of fossil fuels. Nevertheless, the asymmetry of the impact of consumption of renewable energy and its elasticity decrease the consumption of fossil fuels. Therefore, the positive impact of trade openness on the consumption of fossil fuels suggests that the process of globalisation by trade liberalisation in the LAC countries is not sufficient to bring more investment that encourages R&D in energy efficiency technologies, and equipment that reduces the consumption of energy from non-renewable energy sources by households and firms