Green versus grey

Impact of renewable and non-renewable energy usage on Canada's growth trajectory in the context of internal and external forces

Dados Bibliográficos

ID13135261
AutoresMd Idris Ali (0000-0002-9122-8005, Toronto Metropolitan University), Md Monirul Islam (0000-0001-5875-433X, University of Dhaka, autor correspondente), Brian Ceh (0000-0002-2083-9335, Toronto Metropolitan University)
Ano2024
Volume8
Páginas100258-100258
Data de publicação2024-08-06
Peer ReviewedSim
Open AccessSim
TipoARTICLE
PeriódicoSustainable Futures (JOURNAL)
Identificadores do periódicoISSN: 2666-1888
EditoraElsevier BV (PUBLISHER)
DOI10.1016/j.sftr.2024.100258
OpenAlexW4401378759
IdiomaEN
Citações recebidas7
Referências citadas78

To effectively address climate change, economies worldwide must transition from grey, fossil fuel–dependent models to green, renewable energy–based systems, thereby striving to reduce global warming. However, a comparative study of how internal and external macro-economic dynamics influence both grey and green energy sources remains significantly underexplored. This study examines the effects of aggregated, renewable and non-renewable energy on economic growth. Therefore, this study investigates the connection between aggregated and disaggregated energy consumption (renewables and non-renewables) and economic growth in Canada by incorporating internal and external macro-economic determinants, along with institutional quality, which are variables during the period of 1990–2022. Using the dynamic autoregressive distributed lag (DARDL) approach, the study's results reveal that both aggregated and disaggregated energy consumption of renewable and non-renewable sources stimulate economic growth in the presence of both internal and external dynamics in both the short and long terms. However, this relationship is stronger in the context of internal dynamics than external ones. In addition, we conduct a counterfactual analysis by displaying 1% (±) and 5% (±) shocks to regressors and examining their effects on the regressed variable. Finally, we use the kernel-based regularised least squares (KRLS) machine learning algorithm to examine the cause-and-effect connectedness among variables. On the basis of the findings, this study recommends optimising both internal and external dynamics by adopting a diversified energy mix strategy. This approach will enable Canada to transition towards a sustainable and resilient economic future

Context (archaeology · Counterfactual thinking · Economics · Environmental economics · Geography · Natural resource economics · Renewable energy · Energy, Environment, and Transportation Policies · Energy, Environment, Economic Growth · Engineering · Environmental Impact and Sustainability