Influence of renewable and non-renewable on economic growth energy: An empirical on study 28 OECD countries

In the world, after 1970 energy crisis, the consumption of energy sources increased rapidly as parallel with the economic growth. Nowadays consumption of energy has become very necessary to economy which is obtained from non-renewable (fossil fuels) sources. Environmental and pollution disadvantages of fossil fuels (non-renewable), makes renewable (clean) energy resources more preferable. From this point of view the purpose of this study is to investigate the relationship between economic growth and renewable and non-renewable energy consumption. For this purpose, it was made an empirical study of 28 OECD countries with annual data of 1990-2013 period. In practice, Fisher and Pedro Johansen tested co-integration and Granger used causality tests. Pedroni with FMOLS and DOLS methods investigated long term co-integration between coefficients found among variables. Obtained from the results, was concluded that there was a long-term co-integration between variables. Also, there is a bi-directional relationship between economic growth and non-renewable energy, and from economic growth to renewable energy there has been determined uni-directional relationship. From FMOLS and DOLS tests it is found that in a long-term coefficients of nonrenewable energy in some OECD countries have been effected in negative way. Again, according to the coefficient obtained from the two tests, use of renewable energy, has been found a contribution to the economic growth of all 28 OECD countries. Keywords: Renewable Energy, Energy Nonrenewable, Economic Growth, Panel Data Analysis.