THE DETERMINANTS OF RENEWABLE ENERGY CONSUMPTION

The paper represents the application of panel data analysis in finding the factors affecting the consumption of renewable resources by analyzing eight country for a period of 16 years. The paper focuses on evaluating the effects of economic growth, net exports and carbon dioxide emission on renewable resource consumption. Renewable energy has become one of the major resource for any economy. The energy consumption has increased exponentially over the years. MDG suggest the use of renewable resources by 2030 so it is necessary to understand which factors affect the consumption negatively and which factors boost up the renewable energy consumption. Here we have considered GDP as measure of the growth of the country. The paper employs LSDV model to see the impact and also panel co-integration test to find if there exist a long run relationship among the variables.