Causal relationship between renewable energy consumption and manufacturing value added: Evidence from Kazakhstan
The paper investigates the causal interaction between renewable energy consumption and manufacturing value added in Kazakhstan, a relationship of growing importance in the context of sustainable industrial development. The aim of the study is to assess the direction and nature of causality between t...
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| Format: | Article |
| Language: | English |
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LLC "CPC "Business Perspectives"
2025-05-01
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| Series: | Environmental Economics |
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| Online Access: | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/22109/EE_2022_02_Hasanov.pdf |
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| author | Ramil Hasanov Asli Kazimova Aytakin Mammadova Rashad Salahov Laszlo Vasa |
| author_facet | Ramil Hasanov Asli Kazimova Aytakin Mammadova Rashad Salahov Laszlo Vasa |
| author_sort | Ramil Hasanov |
| collection | DOAJ |
| description | The paper investigates the causal interaction between renewable energy consumption and manufacturing value added in Kazakhstan, a relationship of growing importance in the context of sustainable industrial development. The aim of the study is to assess the direction and nature of causality between these variables over the period from 2000 to 2021. To this end, the Toda-Yamamoto Granger causality test is applied, offering robust results regardless of the order of integration of the time series data. The empirical analysis identifies a statistically significant bidirectional causal relationship. Specifically, renewable energy consumption has a significant impact on manufacturing value added (p = 0.003), while manufacturing value added also significantly influences renewable energy consumption (p = 0.006). These findings reveal a reciprocal mechanism in which the expansion of renewable energy supports industrial growth, and industrial development, in turn, enhances renewable energy usage. The results underscore the strategic importance of integrating renewable energy policies with industrial development plans. From a policy perspective, the study provides practical insights into fostering sustainable economic growth by aligning environmental and industrial objectives in Kazakhstan. |
| format | Article |
| id | doaj-art-e1d7e561b19c4c319e85f0cf3d227a9e |
| institution | DOAJ |
| issn | 1998-6041 1998-605X |
| language | English |
| publishDate | 2025-05-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Environmental Economics |
| spelling | doaj-art-e1d7e561b19c4c319e85f0cf3d227a9e2025-08-20T03:07:58ZengLLC "CPC "Business Perspectives"Environmental Economics1998-60411998-605X2025-05-01162263510.21511/ee.16(2).2025.0322109Causal relationship between renewable energy consumption and manufacturing value added: Evidence from KazakhstanRamil Hasanov0https://orcid.org/0000-0003-4267-7039Asli Kazimova1https://orcid.org/0000-0002-7956-4057Aytakin Mammadova2https://orcid.org/0000-0001-8550-6497Rashad Salahov3https://orcid.org/0000-0002-9209-6841Laszlo Vasa4https://orcid.org/0000-0002-3805-0244Ph.D.(c), Department of Business and Management, Mingachevir State University, Azerbaijan; UNEC Research Center on Global Environmental Issues, Azerbaijan State University of Economics (UNEC), Azerbaijan; Research and Innovation Center, Western Caspian University, AzerbaijanPh.D., Department of Economy, Azerbaijan State University of Economics (UNEC), AzerbaijanPh.D., Department of Business and Logistics, Azerbaijan State University of Economics (UNEC), AzerbaijanPh.D., Department of Economy, Azerbaijan State University of Economics (UNEC), AzerbaijanFull Professor, Department of International and Applied Economics, Gyula Kautz Faculty of Economics, Széchenyi István University, Hungary; Full Professor, Institute of Bioeconomy Research, Vytautas Magnus University, LithuaniaThe paper investigates the causal interaction between renewable energy consumption and manufacturing value added in Kazakhstan, a relationship of growing importance in the context of sustainable industrial development. The aim of the study is to assess the direction and nature of causality between these variables over the period from 2000 to 2021. To this end, the Toda-Yamamoto Granger causality test is applied, offering robust results regardless of the order of integration of the time series data. The empirical analysis identifies a statistically significant bidirectional causal relationship. Specifically, renewable energy consumption has a significant impact on manufacturing value added (p = 0.003), while manufacturing value added also significantly influences renewable energy consumption (p = 0.006). These findings reveal a reciprocal mechanism in which the expansion of renewable energy supports industrial growth, and industrial development, in turn, enhances renewable energy usage. The results underscore the strategic importance of integrating renewable energy policies with industrial development plans. From a policy perspective, the study provides practical insights into fostering sustainable economic growth by aligning environmental and industrial objectives in Kazakhstan.https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/22109/EE_2022_02_Hasanov.pdfeconometricsenvironmental economicsGranger causalityKazakhstanmanufacturing value addedrenewable energy consumption |
| spellingShingle | Ramil Hasanov Asli Kazimova Aytakin Mammadova Rashad Salahov Laszlo Vasa Causal relationship between renewable energy consumption and manufacturing value added: Evidence from Kazakhstan Environmental Economics econometrics environmental economics Granger causality Kazakhstan manufacturing value added renewable energy consumption |
| title | Causal relationship between renewable energy consumption and manufacturing value added: Evidence from Kazakhstan |
| title_full | Causal relationship between renewable energy consumption and manufacturing value added: Evidence from Kazakhstan |
| title_fullStr | Causal relationship between renewable energy consumption and manufacturing value added: Evidence from Kazakhstan |
| title_full_unstemmed | Causal relationship between renewable energy consumption and manufacturing value added: Evidence from Kazakhstan |
| title_short | Causal relationship between renewable energy consumption and manufacturing value added: Evidence from Kazakhstan |
| title_sort | causal relationship between renewable energy consumption and manufacturing value added evidence from kazakhstan |
| topic | econometrics environmental economics Granger causality Kazakhstan manufacturing value added renewable energy consumption |
| url | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/22109/EE_2022_02_Hasanov.pdf |
| work_keys_str_mv | AT ramilhasanov causalrelationshipbetweenrenewableenergyconsumptionandmanufacturingvalueaddedevidencefromkazakhstan AT aslikazimova causalrelationshipbetweenrenewableenergyconsumptionandmanufacturingvalueaddedevidencefromkazakhstan AT aytakinmammadova causalrelationshipbetweenrenewableenergyconsumptionandmanufacturingvalueaddedevidencefromkazakhstan AT rashadsalahov causalrelationshipbetweenrenewableenergyconsumptionandmanufacturingvalueaddedevidencefromkazakhstan AT laszlovasa causalrelationshipbetweenrenewableenergyconsumptionandmanufacturingvalueaddedevidencefromkazakhstan |