Renewable Energy Consumption and Economic Growth in Member of OIC Countries

Abstract

This study examines the causal relationship between economic growth, renewable energy consumption and oil prices using the data of 29 OIC (Organization of Islamic Cooperation) countries. The data are taken from 1990 to 2014. The study applies panel co-integration and causality in order to evaluate the long run and the causal relationship between the variables. Additionally, the empirical results suggest the existence of co-integration between the variables. The impact of renewable energy consumption on economic growth is positive and significant. The panel granger causality reveals the unidirectional causality between renewable energy consumption, oil prices and economic growth.