Impact of Renewable and Non-Renewable Energy Consumption on Economic Growth in Mexico: A RALS-EG Cointegration Test Approach

While Mexico was an energy exporter in 1990, it increased its energy imports by 1766% as an energy importer in 2019 compared to 1990. In this study, the effect of renewable and non-renewable energy consumption on economic growth for Mexico is investigated with annual data for the period 1990-2019. Since all variables are stationary at the first difference, the long-run relationship was investigated with Engle-Granger and the RALS-EG cointegration test introduced by the literature by Lee et al. (2015) to the literature. According to the model results estimated for the size of the long-term relationship, the coefficients of the variables other than non-renewable energy are positive. According to the Granger-Causality test results, the growth hypothesis is valid for Mexico.