A review of renewable energy, economic growth and wind energy: Example of selected OECD countries

Economic growth, wind energy consumption, and technological advancements constitute a complex and dynamic interaction network. While economic growth accelerates energy consumption and technological development, technological advancements can render wind energy consumption more efficient and economical. Simultaneously, an increase in wind energy consumption can trigger economic growth and lead to new technological advancements. This paper aims to examine in detail the impacts of these three factors on each other and the potential effects of this interaction on energy policies. The country selection of our study has been chosen among the members of the Organisation for Economic Cooperation and Development (OECD), a leading global renewable energy guidance body, which are found in the "Renewable Energy Country Attractiveness Index (RECAI)" and from which wind energy data can be accessed, according to their renewable energy investment and distribution potential. The data used in the analysis is chosen annually and since it was planned to include Turkey in the study, the year in which Turkey's wind energy data can be accessed has been taken as the start year, and because the most recent year for the parameters of the Value Added from Medium and High-Tech Manufacturing data is 2020, the study's year frame has been determined as 2008-2020. Per Capita Gross Domestic Product (GDP) data and Value Added from Medium and High-Tech Manufacturing data were taken from the World Bank database, and Wind Energy Consumption Rates were obtained from the BP Energy Statistics database. Our study followed a three-stage process with a methodological approach in its analysis. The first stage is to check the cross-sectional dependency in the variables of the used model and the homogeneity of the slope parameter. This control was conducted using the 𝐶𝐷𝐿𝑀1, 𝐶𝐷𝐿𝑀2 and 𝐶𝐷𝐿𝑀𝑎𝑑𝑗 tests. The second stage is to determine the stationarity states of the series with the CADF second generation unit root test proposed by Pesaran (2007). Based on the findings obtained subsequently, the third stage is to apply the cointegration analyses of Westerlund and Edgerton (2007). Following these analyses, the causality test of Emirmahmutoğlu and Köse (2011) was implemented to determine the causality relationship. As a result of the obtained findings, it has been determined that there is a one-way causality relationship between economic growth and wind energy consumption at a 10% significance level, and this relationship is realized from economic growth to wind energy consumption, and the "conservation hypothesis" is observed to be valid in the economies of the selected OECD countries. This indicates that the use of wind energy is costly. Also, when examined on a panel basis, no causal relationship was found between wind energy consumption and the value-added from medium and high-tech manufacturing, and the "neutrality hypothesis" approach is valid. The reason for this is that the usage prevalence of wind energy technologies is new and in the development phase. When looked at individually by countries, various causal relationships were found both between economic growth and wind energy consumption and between wind energy consumption and the value added from medium and high-tech manufacturing. For instance; in Belgium, a two-way causality relationship was found between wind energy consumption and the value added from medium and high-tech manufacturing, while in France, Ireland, Portugal, and Australia, causality was found to occur from wind energy consumption to the value added from medium and high-tech manufacturing. These results provide various insights for policymakers directing towards wind energy investments and serve as a guide to promote the progression of the renewable energy sector. Overcoming bureaucratic obstacles and infrastructure deficiencies could pave the way for investments in the wind energy field. Moreover.