Cousality Of Energy Development: Short And Long-Run Causity
Then, we determine the short and long run causality among variables. The long run causality is investigated by the statistical significance of term. More precisely, we tested the null hypothesis in opposition to the alternative hypothesis. The short-run causality is performed by the significance of the Wald test of the lags of each additional Variables in equation 4 to equation 7. In equation 4 the short run causality of capital on economic growth is uncovered by testing the null hypothesis in opposition to the alternative hypothesis . In equation 5 the short run causality of non-renewable energy consumption on …show more content…
However, in recent years, the Algerian energy sector is vulnerable to the decrease of oil and gas production and the increase of oil and gas consumption. In order to avoid the dependence on primary energy and to vary the energy provenance, Algeria initiated a plan of renewable energy and energy development.
There is a unidirectional long-run causality running from renewable to non-renewable energy consumption, generally characteristic of substitutability between renewable and non-renewable energy. This indicates that the share of renewable energy consumption in total energy will increase in the long term. This is prone to occur in light of the fact that the consumption of renewable electricity has significantly expanded going from 0.248 Billion Kilowatthours in 1980 to 0.616 Billion Kilowatthours in 2012.
This outcome is coherent with the finding of Ben Jebli and Ben Youssef (2015) in the case of Tunisia. This result is not conform with the result of Bento and Moutinho (2016) in Italian