Forest Conservation and Renewable Energy Consumption: An ARDL Approach
Deforestation shows the constant environmental degradation that occurs worldwide as a result of the growth of economic activity and the increase in population. This research examines the causal link between renewable energy consumption, GDP, GDP<sup>2</sup>, non-renewable energy price, p...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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MDPI AG
2021-02-01
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| Series: | Forests |
| Subjects: | |
| Online Access: | https://www.mdpi.com/1999-4907/12/2/255 |
| _version_ | 1797395597627490304 |
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| author | Pablo Ponce María de la Cruz Del Río-Rama José Álvarez-García Cristiana Oliveira |
| author_facet | Pablo Ponce María de la Cruz Del Río-Rama José Álvarez-García Cristiana Oliveira |
| author_sort | Pablo Ponce |
| collection | DOAJ |
| description | Deforestation shows the constant environmental degradation that occurs worldwide as a result of the growth of economic activity and the increase in population. This research examines the causal link between renewable energy consumption, GDP, GDP<sup>2</sup>, non-renewable energy price, population growth and forest area in high, middle- and low-income countries. Based on data obtained from World Development Indicators, the autoregressive distributed lag model, with a time series, is used to examine the long-term cointegration relationship between the variables. The results justify the existence of a joint long-term relationship between the variables analysed for the middle-income countries and low-income countries. When the forest area is not at its equilibrium level, the speed of adjustment is slow (0.44% and 8.7%), which is typical of the nature of this natural resource. An increase in the consumption of renewable energy is associated with an increase between 0.04 and 0.02 square kilometres of forest cover, respectively. The research does not show evidence about the equilibrium relationship in the short term. Growth in renewable energy consumption is one of the main drivers for preserving the forest area. Therefore, those responsible for making economic policies must aim their measures towards the use of clean energy. |
| first_indexed | 2024-03-09T00:37:47Z |
| format | Article |
| id | doaj.art-c046b669de364c01a4630e42c3a677ff |
| institution | Directory Open Access Journal |
| issn | 1999-4907 |
| language | English |
| last_indexed | 2024-03-09T00:37:47Z |
| publishDate | 2021-02-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Forests |
| spelling | doaj.art-c046b669de364c01a4630e42c3a677ff2023-12-11T18:03:42ZengMDPI AGForests1999-49072021-02-0112225510.3390/f12020255Forest Conservation and Renewable Energy Consumption: An ARDL ApproachPablo Ponce0María de la Cruz Del Río-Rama1José Álvarez-García2Cristiana Oliveira3School of Economics, Universidad Nacional de Loja, 110150 Loja, EcuadorBusiness Management and Marketing Department, Faculty of Business Sciences and Tourism, University of Vigo, 32004 Ourense, SpainFinancial Economy and Accounting Department, Faculty of Business, Finance and Tourism, University of Extremadura, 10071 Cáceres, SpainGeneral Director and Rector, University of the Canary Islands, 38300 Sta. Cruz de Tenerife, SpainDeforestation shows the constant environmental degradation that occurs worldwide as a result of the growth of economic activity and the increase in population. This research examines the causal link between renewable energy consumption, GDP, GDP<sup>2</sup>, non-renewable energy price, population growth and forest area in high, middle- and low-income countries. Based on data obtained from World Development Indicators, the autoregressive distributed lag model, with a time series, is used to examine the long-term cointegration relationship between the variables. The results justify the existence of a joint long-term relationship between the variables analysed for the middle-income countries and low-income countries. When the forest area is not at its equilibrium level, the speed of adjustment is slow (0.44% and 8.7%), which is typical of the nature of this natural resource. An increase in the consumption of renewable energy is associated with an increase between 0.04 and 0.02 square kilometres of forest cover, respectively. The research does not show evidence about the equilibrium relationship in the short term. Growth in renewable energy consumption is one of the main drivers for preserving the forest area. Therefore, those responsible for making economic policies must aim their measures towards the use of clean energy.https://www.mdpi.com/1999-4907/12/2/255forest areaautoregressive distributed lag modelECTrenewable energy consumptiontime series |
| spellingShingle | Pablo Ponce María de la Cruz Del Río-Rama José Álvarez-García Cristiana Oliveira Forest Conservation and Renewable Energy Consumption: An ARDL Approach Forests forest area autoregressive distributed lag model ECT renewable energy consumption time series |
| title | Forest Conservation and Renewable Energy Consumption: An ARDL Approach |
| title_full | Forest Conservation and Renewable Energy Consumption: An ARDL Approach |
| title_fullStr | Forest Conservation and Renewable Energy Consumption: An ARDL Approach |
| title_full_unstemmed | Forest Conservation and Renewable Energy Consumption: An ARDL Approach |
| title_short | Forest Conservation and Renewable Energy Consumption: An ARDL Approach |
| title_sort | forest conservation and renewable energy consumption an ardl approach |
| topic | forest area autoregressive distributed lag model ECT renewable energy consumption time series |
| url | https://www.mdpi.com/1999-4907/12/2/255 |
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