The relationship amongst energy consumption (renewable and non renewable) and GDP in Algeria
This study aims to explore economic growth energy consumption nexus in Algeria between 1980 and 2012. With cointegration tests, we demonstrate the existence of long run link between real gross domestic product, real capital and the two categories of energy consumption i.e renewable energy per capita and non renewable energy. The long run and the short run autoregressive distributed lag (ARDL) estimates indicate that only the non renewable energy sort and capital can contribute to enhancing economic growth whereas renewable energy does not show any significant effect. The outcome of causality tests proves a feedback link among non renewable energy consumption and gross domestic product, among capital and gross domestic product, and among non renewable energy and capital, in both short run and long run terms. Moreover, the results reveal a unidirectional link going from renewable energy to economic growth, capital, and non renewable energy respectively, in the long run. Furthermore, the results illustrate the presence of a unidirectional link going from non renewable energy to renewable energy in the short term. Our outcome suggests that policy makers in Algeria should enhance the renewable energy share together with controlling the non renewable one.