Decomposing the Relationship between Renewable Energy Sources, CO2 Emission and GDP per capita: ARDL Approach for OECD Countries

This study uses the bonds testing or the Autoregressive Distributed Lags (ARDL) approach to investigate the long run effects of five types of renewable energy, namely wind, solar, biomass, hydraulics, and geothermal) on the GDP growth for OECD countries. The findings show the existence of long-run and short run relationship between GDPper capita, renewable energy sources and CO2 emissions. While this relationship exists in manyOECD countries, it is largely absent in other countries. The findings demonstrate that each source of renewable energy has different effect on each OECD country's GDP per capita. Hence, policy-makers should consider designing appropriate strategies and schemes for each OECD country.