The Relationship between the Generation of Electricity from Renewable Resources and Unemployment: An Empirical Study on the Egyptian Economy
Currently, there is a global trend towards the use of renewable energy resources. This is due to their benefits in terms of economic diversification, job creation, and sustainable development. Given the suffering of the Egyptian economy from the chronic unemployment problem, this paper has adopted t...
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Business School, Holy Spirit University of Kaslik (USEK)
2016-06-01
|
| Series: | Arab Economic and Business Journal |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S221446251530027X |
| _version_ | 1827298334032789504 |
|---|---|
| author | Aliaa Nabil Khodeir |
| author_facet | Aliaa Nabil Khodeir |
| author_sort | Aliaa Nabil Khodeir |
| collection | DOAJ |
| description | Currently, there is a global trend towards the use of renewable energy resources. This is due to their benefits in terms of economic diversification, job creation, and sustainable development. Given the suffering of the Egyptian economy from the chronic unemployment problem, this paper has adopted the effect of electricity generation from renewable resources on unemployment. It tests the hypothesis which implies an inverse relationship between renewable electricity generation and unemployment rate in Egypt. By using Autoregressive Distributed Lag (ARDL) approach to identify the effects in the short and long run during the period (1989-2013), it has been found that the hypothesis was achieved in the long run only. This is due to the fact that renewable energy projects in their establishment stages focus on capital intensity more than labour intensity, but with time both direct and indirect employment effects start to emerge. The econometric results agree in the presence of a significant negative impact of both economic growth and investments on the unemployment rate. |
| first_indexed | 2024-04-24T15:12:30Z |
| format | Article |
| id | doaj.art-2a4b2379b34e4284ba3eb54cfe65e3d8 |
| institution | Directory Open Access Journal |
| issn | 2214-4625 |
| language | English |
| last_indexed | 2024-04-24T15:12:30Z |
| publishDate | 2016-06-01 |
| publisher | Business School, Holy Spirit University of Kaslik (USEK) |
| record_format | Article |
| series | Arab Economic and Business Journal |
| spelling | doaj.art-2a4b2379b34e4284ba3eb54cfe65e3d82024-04-02T10:08:57ZengBusiness School, Holy Spirit University of Kaslik (USEK)Arab Economic and Business Journal2214-46252016-06-01111163010.1016/j.aebj.2015.10.003The Relationship between the Generation of Electricity from Renewable Resources and Unemployment: An Empirical Study on the Egyptian EconomyAliaa Nabil KhodeirCurrently, there is a global trend towards the use of renewable energy resources. This is due to their benefits in terms of economic diversification, job creation, and sustainable development. Given the suffering of the Egyptian economy from the chronic unemployment problem, this paper has adopted the effect of electricity generation from renewable resources on unemployment. It tests the hypothesis which implies an inverse relationship between renewable electricity generation and unemployment rate in Egypt. By using Autoregressive Distributed Lag (ARDL) approach to identify the effects in the short and long run during the period (1989-2013), it has been found that the hypothesis was achieved in the long run only. This is due to the fact that renewable energy projects in their establishment stages focus on capital intensity more than labour intensity, but with time both direct and indirect employment effects start to emerge. The econometric results agree in the presence of a significant negative impact of both economic growth and investments on the unemployment rate.http://www.sciencedirect.com/science/article/pii/S221446251530027XRenewable EnergyElectricityUnemploymentAutoregressive Distributed Lag |
| spellingShingle | Aliaa Nabil Khodeir The Relationship between the Generation of Electricity from Renewable Resources and Unemployment: An Empirical Study on the Egyptian Economy Arab Economic and Business Journal Renewable Energy Electricity Unemployment Autoregressive Distributed Lag |
| title | The Relationship between the Generation of Electricity from Renewable Resources and Unemployment: An Empirical Study on the Egyptian Economy |
| title_full | The Relationship between the Generation of Electricity from Renewable Resources and Unemployment: An Empirical Study on the Egyptian Economy |
| title_fullStr | The Relationship between the Generation of Electricity from Renewable Resources and Unemployment: An Empirical Study on the Egyptian Economy |
| title_full_unstemmed | The Relationship between the Generation of Electricity from Renewable Resources and Unemployment: An Empirical Study on the Egyptian Economy |
| title_short | The Relationship between the Generation of Electricity from Renewable Resources and Unemployment: An Empirical Study on the Egyptian Economy |
| title_sort | relationship between the generation of electricity from renewable resources and unemployment an empirical study on the egyptian economy |
| topic | Renewable Energy Electricity Unemployment Autoregressive Distributed Lag |
| url | http://www.sciencedirect.com/science/article/pii/S221446251530027X |
| work_keys_str_mv | AT aliaanabilkhodeir therelationshipbetweenthegenerationofelectricityfromrenewableresourcesandunemploymentanempiricalstudyontheegyptianeconomy AT aliaanabilkhodeir relationshipbetweenthegenerationofelectricityfromrenewableresourcesandunemploymentanempiricalstudyontheegyptianeconomy |