TY  - GEN
TI  - Does Energy Diversification Cause an Economic Slowdown? Evidence from a Newly Constructed Energy Diversification Index
AU  - Gozgor, Giray
AU  - Paramati, Sudharshan Reddy
PY  - 2021
PB  - Munich: Center for Economic Studies and ifo Institute (CESifo)
LA  - eng
KW  - ddc:330
KW  - O47
KW  - Q01
KW  - Q42
KW  - energy diversification
KW  - energy transition
KW  - energy mix
KW  - economic development
KW  - climate change
KW  - nonlinear panel ARDL estimations
AB  - Countries have made considerable efforts to diversify their energy sources from fossil fuels to renewables in the last two decades to achieve sustainable economic development. However, it is widely argued that the countries may experience sluggish economic development during the energy transition period due to structural and functional changes in the economic system. Given this backdrop, this study introduces a new measure of energy diversification. It explores its impact on economic development across the panels of low-income, high-income, European Union (EU), the Organization for Economic Co-operation and Development (OECD), and G20 countries. The study uses data from 1995 to 2018 and utilizes Nonlinear Panel Autoregressive Distributed Lag (NPARDL) method. Our findings confirm that the major economies (including G20) realize positive economic growth with increasing long-run energy diversification. However, some countries (OECD and G20) experience negative economic growth due to energy diversification in the short term. The results also disclosed that energy diversification does not favor economic growth in low-income economies in both the short and long term. Therefore, more precautionary measures to be taken into account while diversifying energy sources.
UR  - http://hdl.handle.net/10419/245428
UR  - https://www.pollux-fid.de/r/base-ftzbwkiel:oai:econstor.eu:10419/245428
H1  - Pollux (Fachinformationsdienst Politikwissenschaft)
ER  -