Relationship between biomass energy and economic growth in transition countries: panel ARDL approach

Abstract

In this study, we have investigated the co-integration and causality relationship between the biomass energy consumption and economic growth in the transition countries by the Panel Auto Regressive Distributed Lag (ARDL) method and Pedroni co-integration analysis for 1990-2011. Analysed countries are gathered under two groups. For Groups 1 and 2, Pedroni panel co-integration test and ARDL bound test results show that biomass energy consumption and economic growth are co-integrated. Fully modified ordinary least squares results suggested that biomass energy consumption has positive effect on the economic growth.