The Impact of Renewable Energy Consumption on the Human Development Index in Selected Countries: Panel Analysis (1990-2015)
International Journal of Economy, Energy and Environment
Volume 5, Issue 4, August 2020, Pages: 47-68
Received: Aug. 14, 2020; Accepted: Aug. 31, 2020; Published: Sep. 10, 2020
Views 19      Downloads 27
Haidy Amer, School of Business, Arab Academy for Science, Technology and Maritime Transport, Alexandria, Egypt
Article Tools
Follow on us
Human Development Index combines three well known dimensions: long healthy life, education and standard of living. Energy influences all these dimensions either directly or indirectly, that is one of the reasons why countries should focus on reducing greenhouse gas emissions that come directly from energy use, and improve energy efficiency activities while at the same time not affecting the human development process. By studying the relationship between energy and human development, through PVAR analysis, this paper contributes to the efforts of promoting renewable energy and energy efficiency while acting globally for climate change mitigation. The analysis covers 4 panels representing four income levels distributed among the globe throughout the period from 1990 to 2015. First and second panel unit root and cointegration tests are being applied after examining for cross sectional correlation between each panel units, then PVAR analysis is being conducted for each panel through a system GMM methodology. Results show that in all of the four panels the impact of renewable energy consumption in reducing the per capita CO2 emissions is found to be insignificant for all of the four panels. Moreover, the impact of the renewable energy consumption on the HDI is found to be insignificant among the selected countries in all of the panels except the lower middle-income countries.
Renewable Energy Consumption, Energy Intensity, Human Development Index
To cite this article
Haidy Amer, The Impact of Renewable Energy Consumption on the Human Development Index in Selected Countries: Panel Analysis (1990-2015), International Journal of Economy, Energy and Environment. Vol. 5, No. 4, 2020, pp. 47-68. doi: 10.11648/j.ijeee.20200504.12
Copyright © 2020 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License ( which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Apergis, N., Payne, J. E., Menyah, K. and Wolde-Rufael, Y., 2010. On the causal dynamics between emissions, nuclear energy, renewable energy, and economic growth. Ecological Economics, 69 (11), pp. 2255-2260.
Bilan, Y., Streimikiene, D., Vasylieva, T., Lyulyov, O., Pimonenko, T. and Pavlyk, A., 2019. Linking between renewable energy, CO2 emissions, and economic growth: Challenges for candidates and potential candidates for the EU membership. Sustainability, 11 (6), p. 1528.
Blundell, R. and Bond, S., 1998. Initial conditions and moment restrictions in dynamic panel data models. Journal of econometrics, 87 (1), pp. 115-143.
Breitung, J., 2000. The local power of some unit root tests for panel data, in Baltagi, B. (ed). Advances in Econometrics. Non-stationary panels, panel cointegration, and dynamic panels.
Breusch, T. S. and Pagan, A. R., 1980. The Lagrange multiplier test and its applications to model specification in econometrics. The review of economic studies, 47 (1), pp. 239-253.
Chiu, C. L. and Chang, T. H., 2009. What proportion of renewable energy supplies is needed to initially mitigate CO2 emissions in OECD member countries? Renewable and Sustainable Energy Reviews, 13 (6-7), pp. 1669-1674.
Deichmann, U., Reuter, A., Vollmer, S. and Zhang, F., 2018. Relationship between energy intensity and economic growth: new evidence from a multi-country multi-sector data set. The World Bank.
Dias, R. A., Mattos, C. R. and Balestieri, J. A., 2006. The limits of human development and the use of energy and natural resources. Energy Policy, 34 (9), pp. 1026-1031.
Dincer, I., 2000. Renewable energy and sustainable development: a crucial review. Renewable and sustainable energy reviews, 4 (2), pp. 157-175.
Filippidis, I. and Katrakilidis, C., 2015. Finance, institutions and human development: Evidence from developing countries. Economic research-Ekonomska istraživanja, 28 (1), pp. 1018-1033.
Grossman, G. M. and Helpman, E., 1989. Comparative advantage and long-run growth (No. w2809). National Bureau of Economic Research.
Grossman, G. M. and Helpman, E., 1991. Innovation and growth in the global economy. MIT press.
Harris, R. and Tzavalis, E., 1996. Inference for unit roots in dynamic panels (No. 9604).
Hasnisah, A., Azlina, A. A., & Che, C. M. I. (2019). The Impact of Renewable Energy Consumption on Carbon Dioxide Emissions: Empirical Evidence from Developing Countries in Asia. International Journal of Energy Economics and Policy, 9 (3), 135.
Hatzigeorgiou, E., Polatidis, H. and Haralambopoulos, D., 2011. CO2 emissions, GDP and energy intensity: a multivariate cointegration and causality analysis for Greece, 1977–2007. Applied Energy, 88 (4), pp. 1377-1385.
Heal, G., 2009. The economics of renewable energy (No. w15081). National Bureau of Economic Research.
IEA, I., 2019. Global Renewable Energy Policies and Measures Database.
Kabadayi, B., 2013. Human development and trade openness: A case study on developing countries. Advances in Management and Applied Economics, 3 (3), p. 193.
Kao, C., 1999. Spurious regression and residual-based tests for cointegration in panel data. Journal of econometrics, 90 (1), pp. 1-44.
Kazar, G. and Kazar, A., 2014. The renewable energy production-economic development nexus. International Journal of Energy Economics and Policy, 4 (2), pp. 312-319.
Le, T. H., 2016. Dynamics between energy, output, openness and financial development in sub-Saharan African countries. Applied Economics, 48 (10), pp. 914-933.
Levin, A., Lin, C. F. and Chu, C. S. J., 2002. Unit root tests in panel data: asymptotic and finite-sample properties. Journal of econometrics, 108 (1), pp. 1-24.
Love, I. and Zicchino, L., 2006. Financial development and dynamic investment behavior: Evidence from panel VAR’, The Quarterly Review of Economics and Finance, 26. pp. 190-210.
Martinez, D. M. and Ebenhack, B. W., 2008. Understanding the role of energy consumption in human development through the use of saturation phenomena. Energy Policy, 36 (4), pp. 1430-1435.
Mazur, A., 2011. Does increasing energy or electricity consumption improve quality of life in industrial nations?. Energy Policy, 39 (5), pp. 2568-2572.
Murshed, M., 2018. Does improvement in trade openness facilitate renewable energy transition? Evidence from selected South Asian economies. South Asia Economic Journal, 19 (2), pp. 151-170.
Niu, S., Jia, Y., Wang, W., He, R., Hu, L. and Liu, Y., 2013. Electricity consumption and human development level: A comparative analysis based on panel data for 50 countries. International Journal of Electrical Power & Energy Systems, 53, pp. 338-347.
Pedroni, P., 1999. Critical values for cointegration tests in heterogeneous panels with multiple regressors. Oxford Bulletin of Economics and statistics, 61 (S1), pp. 653-670.
Pedroni, P., 2004. Panel cointegration: asymptotic and finite sample properties of pooled time series tests with an application to the PPP hypothesis. Econometric theory, 20 (3), pp. 597-625.
Pesaran H. M., 2007. A Simple Panel Unit Root Test In The Presence Of Cross Section Dependence. Journal of Applied Econometrics, Vol. 22, PP. 265-312.
Pesaran, M. H., 2003. A Simple Panel Unit Root Test in the Presence of Cross Section Dependence. Cambridge Working Papers in Economics No. 0346, University of Cambridge.
Pîrlogea, C., 2012. The human development relies on energy. Panel data evidence. Procedia economics and Finance, 3, pp. 496-501.
Roodman, D., 2009. How to do xtabond 2: An introduction to difference and system GMM in Stata. The Stata Journal, Vol. 9, Number 1, pp. 86–136.
Scholtens, B. and Veldhuis, R., 2015. How does the development of the financial industry advance renewable energy? A panel regression study of 198 countries over three decades.
Scott, A., 2013. Energy and low-carbon competitiveness: the case of low-income countries. ODI Working Papers 367. London: Oversees Development Institute.
Sohag, K., Al Mamun, M., Uddin, G. S. and Ahmed, A. M., 2017. Sectoral output, energy use, and CO2 emission in middle-income countries. Environmental Science and Pollution Research, 24 (10), pp. 9754-9764.
Soukiazis, E., Proenca, S. and Cerqueira, P. A., 2019. The interconnections between renewable energy, economic development and environmental pollution: A simultaneous equation system approach. The Energy Journal, 40 (4).
Steinberger, J. K., 2016. Energizing Human Development, s. l.: UNDP.
Stock, J. H., 1987. Testing for Common Trends. Journal of the American Statistical Association, 83, pp. 1097-1107.
U. S Energy Information Administration, 2019. Data. Retrieved from .
Wang, Z., Zhang, B. and Wang, B., 2018. Renewable energy consumption, economic growth and human development index in Pakistan: evidence form simultaneous equation model. Journal of cleaner production, 184, pp. 1081-1090.
Wedocs, 2015. Zimbabwe. Retrieved from .
Westerlund, J. and Edgerton, D. L., 2007. A panel bootstrap cointegration test. Economics letters, 97 (3), pp. 185-190.
Westerlund, J., 2005. New simple tests for panel cointegration. Econometric Reviews, 24 (3), pp. 297-316.
Westerlund, J., 2007. Testing for error correction in panel data. Oxford Bulletin of Economics and statistics, 69 (6), pp. 709-748.
Wooldridge, J. M. 2002. Econometric Analysis of Cross Section and Panel Data. Cambridge, MA: MIT Press.
World Bank Organization, 2019. World Development Indicators. Retrieved from Dimension_WDI_Series.
World Bank, 2015. Sudan’s Forests National Corporation Launches Climate Change and Deforestation Project with World Bank Group Support. Retrieved from<>.
Science Publishing Group
1 Rockefeller Plaza,
10th and 11th Floors,
New York, NY 10020
Tel: (001)347-983-5186