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Open AccessArticle

Do High Oil Prices Obstruct the Transition to Renewable Energy Consumption?

1
Department of World Economy, Baku Engineering University, Baku AZ0101, Azerbaijan
2
UNEC Empirical Research Center, Azerbaijan State University of Economics (UNEC), Istiqlaliyyat Str. 6, Baku AZ1141, Azerbaijan
3
Energy and Macroeconomics, King Abdullah Petroleum Studies and Research Center, PO Box 88550, Riyadh 11672, Saudi Arabia
4
Department of Statistics and Econometrics, Azerbaijan State University of Economics (UNEC), Istiqlaliyyat Str. 6, Baku AZ1141, Azerbaijan
5
Department of Economics and Management, Azerbaijan State University of Economics (UNEC), Istiqlaliyyat Str. 6, Baku AZ1141, Azerbaijan
*
Author to whom correspondence should be addressed.
Sustainability 2020, 12(11), 4689; https://doi.org/10.3390/su12114689
Received: 1 April 2020 / Revised: 31 May 2020 / Accepted: 3 June 2020 / Published: 8 June 2020
The study analyzes the impact of economic growth, carbon dioxide (CO2) emissions, and oil price on renewable energy consumption in Azerbaijan for the data spanning from 1992 to 2015, utilizing structural time series modeling approach. Estimation results reveal that there is a long-run positive and statistically significant effect of economic growth on renewable energy consumption and a negative impact of oil price in the case of Azerbaijan, for the studied period. The negative impact of oil price on renewable energy consumption can be seen as an indication of comfort brought by the environment of higher oil prices, which delays the transition from conventional energy sources to renewable energy consumption for the studied country case. Also, we find that the effect of CO2 on renewable energy consumption is negative but statistically insignificant. The results of this article might be beneficial for policymakers and support the current literature for further research for oil-rich developing countries. View Full-Text
Keywords: renewable energy; economic growth; oil price; structural time series modeling—STSM; cointegration; Azerbaijan renewable energy; economic growth; oil price; structural time series modeling—STSM; cointegration; Azerbaijan
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MDPI and ACS Style

Mukhtarov, S.; Mikayilov, J.I.; Humbatova, S.; Muradov, V. Do High Oil Prices Obstruct the Transition to Renewable Energy Consumption? Sustainability 2020, 12, 4689. https://doi.org/10.3390/su12114689

AMA Style

Mukhtarov S, Mikayilov JI, Humbatova S, Muradov V. Do High Oil Prices Obstruct the Transition to Renewable Energy Consumption? Sustainability. 2020; 12(11):4689. https://doi.org/10.3390/su12114689

Chicago/Turabian Style

Mukhtarov, Shahriyar; Mikayilov, Jeyhun I.; Humbatova, Sugra; Muradov, Vugar. 2020. "Do High Oil Prices Obstruct the Transition to Renewable Energy Consumption?" Sustainability 12, no. 11: 4689. https://doi.org/10.3390/su12114689

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