Asymmetric between oil prices and renewable energy consumption in the G7 countries

Understanding the dynamic relationship between oil prices and renewable energy is beneficial to promoting the development of the renewable energy market and the transition from fossil fuels to renewable energy, which will finally protect the environment. Based on the data of G7 countries from 1980 to 2018, this paper analyzes the short-term and long-term dynamic relationship between oil prices and renewable energy consumption (REC) by using linear and nonlinear autoregressive distributed lag models under the condition of structural fractures and then discusses its asymmetric characteristics. The results show that, except for France and Germany, the oil prices of other countries have a significant asymmetric effect on REC, but there is great heterogeneity between the countries. Specifically, in Canada, the U.S., and Italy, a positive change in oil prices has a greater impact on REC than a negative change, whereas in England and Japan, the results are just the opposite. Therefore, based on the heterogeneity between countries and the long-and short-term dynamic relationships reflected in the research results, this paper further discusses the policy implications. (c) 2021 Elsevier Ltd. All rights reserved.