Renewable Energy Consumption and Economic Growth in Nine OECD Countries: Bounds Test Approach and Causality Analysis
Table 3
Granger causality test results.
Null hypotheses
USA
Japan
Germany
Italy
UK
-statistics for short-run Granger causality
1.472
0.712
3.604
0.762
0.143
()
(0.244)
(0.532)
(0.541)
(0.509)
(0.904)
2.641
0.126
1.877
3.188
3.578
()
(0.756)
(0.683)
(0.384)
(0.041)**
(0.064)**
-statistics for long-run Granger causality
0.274
3.574
17.571
13.849
7.102
()
(0.856)
(0.493)
(0.002)***
(0.060)**
(0.013)**
11.643
14.744
0.539
3.567
0.612
()
(0.001)***
(0.001)***
(0.676)
(0.211)
(0.331)
-statistics for strong Granger causality
2.116
0.512
10.667
2.303
2.680
()
(0.563)
(0.361)
(0.004)***
(0.379)
(0.031)**
9.224
4.153
1.990
2.754
1.564
()
(0.001)***
(0.142)
(0.348)
(0.218)
(0.452)
Notes. First, (RE) is the renewable energy consumption, (Y) is the real GDP per capita, and is the first difference operator; second, *** and ** represent the 1% and 5% significance level, respectively; third, the number inside the parenthesis is the P-value for F-statistics; and finally, the numbers of optimal lags are selected based on SBC and calculated as one for Japan and UK, and two for USA, Germany, and Italy.
