Renewable Energy, Economic Growth, Carbon Dioxide Emissions And Human Development Index In Algeria

Abstract

The objective of this paper is to study the effect of renewable energy consumption (REC), economic growth (GDP), and carbon dioxide emissions (CO2) on Human Development Index (HDI) in Algeria over the period of 1995-2016. We employed the procedure of GMM estimation and Toda-Yamamoto causality to study the dynamic effect between variables. We found with GMM estimation that GDP had a positive and significant effect on (HDI), while the two variables of (REC) and (CO2) were positive and insignificant. We established with Toda-Yamamoto test that there is bidirectional causality between CO2 and HDI at the level of 1%, while we concluded for three unidirectional causalities at the level of 1%, which were running from REC to HDI and from REC to GDP and from REC to CO2.