The Impact of Renewable Energy Consumption on Economic Growth in Jordan
DOI:
https://doi.org/10.35516/jjes.v9i1.253Keywords:
Consumption, , Renewable Energy, Cobb-Douglas, Economic Growth, JordanAbstract
This study aims to examine the impact of renewable energy consumption, capital, and labor on economic growth in Jordan during the period 1996-2018. The study used the Johansen co-integration test, Cobb-Douglas production function, and the dynamic ordinary least squares (DOLS), to test the hypotheses of the study. The results of the co-integration test showed that there is a long-run equilibrium relationship between the study variables. The results of (DOLS), indicated that renewable energy consumption has a long-run relationship with the economic growth in Jordan and that the consumption of renewable energy has a positive and statistically significant impact on the economic growth in Jordan. Capital and labor have a positive and statistically significant impact on economic growth in Jordan. The study recommends adopting policies that would increase investment in renewable energy by providing exemptions, easy loans at low-interest rates. Furthermore, it also encourages adopting renewable energy policies as an effective option to reduce pollution and provide job opportunities to ensure good economic growth rates in Jordan.
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