This present empirical Master thesis deals with renewable energies as potential growth factor in emerging countries in the context of sustainable economic development. The geographical focus is placed on South America. The sample embraces Argentina, Brazil, Chile and Colombia whose energy markets are interrelated through historical and political commonalities which at the same time constitute collaboration obstacles in energy trade. The concrete research question is whether renewable energies can act as an acceleration factor upon the development of emerging South American economies and refers to the assumption that renewable energies may contribute to economic growth.
Following a substantive literature review eight hypotheses were formulated and verified by means of multivariate regression models including different checks and tests regarding: significance of the coefficients (p-value), significance of the regression model (F-Test), autocorrelation (Durbin-Watson-Test), multicollinearity (VIF value), heteroscedasticity (Goldfeld-Quandt-Test), and structural break (Chow-Test). Empirical input data were gathered from publicly available sources, such as the IEA and the World Bank. The results are transparently visualized by numerous figures and tables.
In general, the results indicate the existence of positive and negative relations between various dependent and independent variables related to macroeconomic and renewable energy proxies which were used for the forming of hypotheses. Finally, the empirical data gathered in present study provide sufficient evidence to conclude that renewable energies act as an important acceleration factor for the development of the economies of Brazil, Chile and Colombia. In the case of Argentina, a sufficient amount of significant results could not be obtained to make a judgment with respect to the research question.
Table of Contents
1 Introduction
2 Literature Review and Deduction of Hypotheses
2.1 Literature Review
2.1.1 Overview of the literature reviewed
2.1.2 Conclusion on the literature reviewed
2.2 Hypotheses
2.2.1 Hypothesis 1
2.2.2 Hypothesis 2
2.2.3 Hypothesis 3
2.2.4 Hypothesis 4
2.2.5 Hypothesis 5
2.2.6 Hypothesis 6
2.2.7 Hypothesis 7
2.2.8 Hypothesis 8
2.3 The sample of countries – a brief overview of their particular energy markets
2.3.1 Argentina
2.3.2 Brazil
2.3.3 Chile
2.3.4 Colombia
2.4 Interrelations and integration obstacles of the four energy markets
3 Empirical Analysis – Interconnection between Renewable Energies and Economic Growth
3.1 Depiction of the sample and methods of data collection
3.2 Implementation of the sample
3.2.1 Selection of variables and parameters
3.2.2 Applied analysis methods and their boundary conditions
4 Results
4.1 Hypothesis 1
4.2 Hypothesis 2
4.3 Hypothesis 3
4.4 Hypothesis 4
4.5 Hypothesis 5
4.6 Hypothesis 6
4.7 Hypothesis 7
4.8 Hypothesis 8
5 Discussion
5.1 Discussion of the results
5.2 Theoretical and practical implications of the results
5.3 Limitations
6 Conclusion and Outlook
Research Objectives and Themes
The primary research objective is to examine whether renewable energy sources can act as a catalyst for economic development and growth in emerging South American economies. The study investigates the energy-economic growth nexus to provide policy recommendations for decision-makers in the region.
- Analysis of the interrelation between renewable energy consumption/production and economic growth.
- Comparative examination of the energy markets in Argentina, Brazil, Chile, and Colombia.
- Evaluation of macroeconomic technical efficiency and energy-related economic impacts.
- Investigation of structural breaks and seasonal influences on energy markets and prices.
- Assessment of the role of energy policies and investment in fostering renewable energy adoption.
Excerpt from the Book
2.1.1 Overview of the literature reviewed
In the papers reviewed here, all authors agree on the view that energy source alternatives must exhibit positive GHG emission balances, i.e. emissions which are significantly lower than those of fossil fuels. With respect to concrete alternatives, two viewpoints have been identified: on the one hand, to increase the use of existing nuclear technology for energy generation, and on the other hand, to enhance the share of RE in the total energy supply. To avoid blurred usage of the term renewable energy, Meisen and Krumpel (2009) point out that RE sources can be defined in a narrower and in a broader sense. The latter is adopted by the EIA, IEA, and the World Bank, and, apart from hydro, solar, tidal and wind energy, also includes combustible renewables and waste which embrace “solid biomass, liquid biomass, biogas, industrial waste, and municipal waste”. Given the fact that relevant data for empirical analysis will mainly stem from these institutions, the broader definition will be adopted in this thesis. A sharp distinction must also be made between energy consumption and electricity consumption (ELC), two variables which are highly relevant for the subject of this thesis. While EC encompasses all sources energy is gained from, ELC considers only electric energy, which can originate from various sources such as hydroelectric power stations, solar panels, wind power plants, but excluding fossil fuels such as oil or gas. The latter are usually not used for electricity generation, but for gasoline production or heating.
Summary of Chapters
1 Introduction: Introduces the climate change context, the research question, and the scope of the study regarding renewable energy in South American economies.
2 Literature Review and Deduction of Hypotheses: Reviews existing studies on the energy-economic growth nexus and derives eight specific hypotheses for empirical testing.
3 Empirical Analysis – Interconnection between Renewable Energies and Economic Growth: Details the methodology, data sources, and econometric approach used to test the derived hypotheses.
4 Results: Presents the findings from the regression analyses and statistical tests conducted for each hypothesis.
5 Discussion: Interprets the empirical results, addresses the implications for energy policy, and acknowledges study limitations.
6 Conclusion and Outlook: Synthesizes the main findings and offers future research perspectives and strategic recommendations for energy stakeholders.
Keywords
Renewable energy, Economic growth, South America, Energy consumption, Electricity generation, GDP, Granger causality, Structural breaks, Energy policy, Greenhouse gas emissions, Hydroelectricity, Sustainability, Macroeconomic efficiency, Net energy imports, Econometric modeling.
Frequently Asked Questions
What is the core focus of this research?
The research examines the relationship between renewable energy and economic growth in four specific emerging South American economies: Argentina, Brazil, Chile, and Colombia.
What are the primary thematic fields covered?
The study covers the energy-economic growth nexus, the impact of energy market reforms, the role of hydro-dependent energy systems, and the influence of environmental policies.
What is the central research question?
The research asks: Can renewable energies act as an acceleration factor upon the development of emerging South American economies?
Which scientific methodology is employed?
The thesis utilizes quantitative econometric methods, specifically Ordinary Least Squares (OLS) regression analysis, supported by structural break tests and descriptive statistics.
What is addressed in the main body of the work?
The main body includes a literature review, the formation of eight hypotheses, an empirical analysis based on international datasets, and a detailed discussion of the results across the four selected countries.
Which keywords best describe this study?
Key terms include Renewable energy, Economic growth, South America, Granger causality, and Energy-economic growth nexus.
Why was Brazil chosen as a focal point in several analyses?
Brazil's significant economic size and its unique, dominant role in hydropower generation and bioethanol usage make it a critical case for studying energy-driven economic developments in the region.
How does the study handle the issue of seasonal influences on electricity prices?
The study performs a specific analysis for Brazil, examining the seasonality of hydroelectricity generation in the South-East and Center-West regions to correlate river flows with electricity price fluctuations.
What conclusion does the author reach regarding energy policy?
The author concludes that energy conservation and GHG reduction policies are not necessarily detrimental to economic growth, provided they are coupled with strategic investments in renewable energy production.
- Arbeit zitieren
- Thomas S. Konrad (Autor:in), 2012, Renewable Energies as a Growth Factor in Argentina, Brazil, Chile and Colombia, München, GRIN Verlag, https://www.grin.com/document/369520
