Does wind energy increase economic growth? A review of the eu

Abstract

This study examined the relationship between wind energy and economic growth in the European Union countries, considering the period from 2002 to 2021. As cross-section dependency was detected in the variables, the Pesaran (2007) CADF unit root test was utilized, one of the second generation unit root tests. The existence of a long-run relationship was investigated with the Westerlund (2007) panel cointegration test. Once a long-run relationship was determined, long-run elasticity coefficients were obtained using the CCEMG estimator developed by Pesaran (2006) and the AMG estimator developed by Eberhardt and Bond (2009) and Eberhardt and Teal (2010). The study concluded that wind energy has a negative and statistically insignificant impact on economic growth and also found evidence for the validity of the conservation hypothesis.