Renewable and non-renewable energy consumption, economic growth and Ecological footprint relationship in the top Russian energy importers: A panel data analysis

Abstract

Abstract This study examines the relationship between renewable and non-renewable energy consumption, economic growth, and EF for the top 14 Russian energy importing countries in the 2000-2018 period. Through PVAR analysis, this study calculates the long-term correlation between variables using a VEC model. The VAR approach addresses the endogeneity issue by including endogenous interactions between the variables in the model. Additionally, the impulse response functions and the influence of various variables on certain lags are evaluated. Cointegration between variables was evaluated using DOLS and FMOLS panel analysis to evaluate the long-term link further. Our findings demonstrate that there is a cointegration relationship between all series. According to the impulse response analysis results, an energy shock from Russia will negatively affect the countries' economic growth and decrease the EF. Increasing both PEC and REC domestically increases EF, but the effect of REC on EF seems to be a little less. According to DOLS findings, a 10 percent increase in LNFUELS increases the elasticity of LNPGDP by 0.61%.In contrast, FMOLS findings indicate a 10% increase in the EF or LNFUELS, increasing the elasticity of LNPGDP by 1%. Although the direction of the relationship is positive when EF is considered the dependent variable, while the PEC elasticity coefficient was 0.030 in the DOLS model, it was found to be 0.023 in the FMOLS model. The elasticity value of the LNPGDP variable was found to be 0.69 in the FMOLS model. JEL CODES: O13; O44; C59, Q56