Effects of Biomasss Energy on Economic Growth in Transition Countries: Panel ARDL Approach

Abstract

It is investigated the cointegration and causality relationship of the biomass energy consumption and economic growth in the transition countries by the Panel ARDL method and Pedroni cointegration analysis. Analyzed countries are gathered under two group. For Group 1, Pedroni panel cointegration test and ARDL bound test results show that biomass energy consumption and economic growth are cointegrated. FMOLS results suggest that biomass energy consumption has positive effect on the economic growth.