Renewable and non-renewable energy use - economic growth nexus: The case of MENA Net Oil Importing Countries

The empirical results provide evidence for long-term equilibrium relationship between real Gross Domestic Product (GDP), renewable energy use, non-renewable energy use, real gross fixed capital formation and labor force. The results provide evidence also for positive and statistically significant elasticities. Moreover, the empirical findings from panel Error Correction Model confirm the existence of bidirectional causality between renewable energy use and economic growth, and between non-renewable energy use and economic growth, results that support the feedback hypothesis. Moreover, our empirical findings provide evidence for two way (bidirectional) causal association in both the short and long-run between renewable and non-renewable energy use which proves the substitutability and interdependence between these two types of energy sources. The policies implications of these results are also proposed and discussed.