ASSESSMENT OF RELATIONS BETWEEN RENEWABLE ENERGY AND ECONOMIC GROWTH IN BULGARIA - VAR ANALYSIS

Hamit Can, Gabriela Krasteva

Abstract


The role of existing interconnections between renewable energy on the one hand and economic growth on the other is an emphasis on many studies, but within the scope of Bulgaria, the specificity of these relations requires an in-depth review of the growing importance of renewable energies. The main factors to be surveyed are: consumption of renewable energy, production of renewable energy and per capita GDP. The interaction of these variables is analyzed to show the direction and importance of the relationship. The analyzes include the vector autoregression model and a number of cointegration and causality tests. The period covers the years after the collapse of the socialist system and the integration of modern energy use, as well as the specific crisis moments that changed and reduced the prospects for sustainable growth, part of which are also the alternatives for the extraction of natural energy resources.

Keywords


Renewable energy, Economic growth, Johansen Cointegration, Granger causality, Macroeconomic influence

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