Economic growth and the use of sustainable and unsustainable energy: an Ecuadorian case approach using cointegration techniques
DOI:
https://doi.org/10.26871/killkanasocial.v2i3.326Abstract
The threat of climate change and the dependence on energy imports, together with the exhaustible nature of fossil fuels, have encouraged many countries to look for alternative sources of energy, in order to reduce greenhouse gas emissions. Therefore, this research analyzes the equilibrium relationship between sustainable, unsustainable energy and Ecuador's economic growth during the period 1971-2014. Using data from the World Bank's World Development Indicators and cointegration techniques for time series, we find evidence showing that there is a long and short term relationship between sustainable energy, non-sustainable energy and economic growth. We also find that there is a unidirectional causal relationship from sustainable energy to economic growth. Which leads us to conclude that this variable is of the utmost importance for there to be greater economic growth, for this reason today many developed countries are investing more and more in this type of clean energy. In addition to helping to reduce pollution, its cost is also far below conventional energies. In the case of Ecuador, work is already underway to change the energy matrix, evidencing major works such as the eight hydroelectric projects, most of them already in operation, for this reason Ecuador has become a clean energy exporting country. A political implication derived from this research is to strengthen both supply and demand of sustainable energies as a mechanism to strengthen the economic growth of countries that are developing.
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