Renewable vs non-renewable electricity and the industrial production nexus: Evidence from an ARDL bounds test approach for Greece

This paper uses monthly data from Aug. 2004 to Feb. 2014 and employs the Autoregressive Distributed Lag bounds test approach to study the short and long-run relationship of renewable and non-renewable electricity with economic growth in Greece. Dummies reveal most of the major energy policy adaptations taking place in Greece to overcome the economic crisis and reach stipulated renewable energy targets. Results show that in the short-run, fossil sources play the baseload role in electricity production and there is a clear substitution effect between sources, while in the long-run, fossil sources contribute to the development of renewable energy sources as backup energy.