Energy and Economic Growth, Is There a Connection? Energy Supply Threats Revisited
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Scientific Research Publishing
Abstract
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The increased cost of accessing energy and the effects on economic growth (GDP) across regions is
one of grave concern [1]. The Cost implication of energy supply often shapes regional energy policies
across the globe. This paper presents an empirical investigation into the relationship between
energy generation and economic growth, while also investigating probable threats to sustainable
energy supply across regions. Energy generation was found to have some implications for economic
growth across regions. It was found that hydro electric, renewable energy and nuclear generation
sources were significantly driving growth across regions while coal and gas sources were
not. This was particularly true since the cost of fossils was having strong cost implications, for
overall energy generation cost in countries in regions due to overdependence on fossils. Generating
sources were also found to have strong implications for sustained energy supply (energy security),
renewable energy and gas generating sources that had the strongest effects on sustainable
energy supply across regions. This was probably true since regions were focusing on new technologies
in energy generation process, which are cheaper, cleaner and more sustaining, while still
depending on gas plants due to the relative cost implications of maintaining gas plants compared
to hydro and nuclear generating plants. The method of estimation used in the study is the seemingly
unrelated regression estimation method
Keywords
H Social Sciences (General)