Assessment of the relationship between renewable energy and employment of the United States of America: Empirical evidence from spectral Granger causality

Abstract

In this study, the spectral Granger causality nexus between renewable energy generation and employment for the period February 1973–September 2019 in the USA is examined. The results obtained from the study expresses that there is no spectral Granger causality relationship between renewable energy generation and employment for aforementioned period in the USA. Furthermore, these findings support neutrality hypothesis, which means that there is no causality relation between the variables. In other words, renewable energy generation does not influence employment and employment does not have an effect on renewable energy generation.

This is a preview of subscription content, access via your institution.

Fig. 1
Fig. 2
Fig. 3
Fig. 4
Fig. 5

Data availability

[dataset] BLS, 2020. https://www.bls.gov/

[dataset] EIA, 2020. https://www.eia.gov/totalenergy/data/monthly/dataunits.php.

Notes

  1. 1.

    We consider total renewable energy generation, as there is no monthly data regarding non-hydro renewable energy generation from EIA database.

References

  1. Ağpak F, Özçiçek Ö (2018) Bir istihdam politikası aracı olarak yenilenebilir enerji. Ömer Halisdemir Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi. 11(2):112-128. https://doi.org/10.25287/ohuiibf.334307 (in Turkish)

  2. Akarca AT, Long TV (1979) Energy and employment: a time-series analysis of the causal relationship. Resour and Energy 2(2-3):151–162. https://doi.org/10.1016/0165-0572(79)90027-6

    Article  Google Scholar 

  3. Apergis N, Payne JE (2011) The renewable energy consumption–growth nexus in Central America. Appl Energy 88(1):343–347. https://doi.org/10.1016/j.apenergy.2010.07.013

    Article  Google Scholar 

  4. Bekmez S, Ağpak F (2016) Non-Hydro renewable energy and employment: a bootstrap panel causality analysis for countries with different income levels. J Bus Econ Policy 3(1):32–45

    Google Scholar 

  5. BLS (2020) https://www.bls.gov/

  6. Breitung J, Candelon B (2006) Testing for short-and long-run causality: a frequency-domain approach. J Econometrics 132(2):363–378. https://doi.org/10.1016/j.jeconom.2005.02.004

    Article  Google Scholar 

  7. C2ES (2020) https://www.c2es.org/content/renewable-energy/

  8. CSS (2020) US renewable energy factsheet. University of Michigan, Pub. No. CSS03-12. http://css.umich.edu/factsheets/us-renewable-energy-factsheet

  9. Destek MA, Ozsoy FN, Ozpolat A (2020) Investigation on the job creation effect of green energy in OECD countries. In: Shahbaz M, Balsalobre-Lorente D (eds) Econometrics of green energy handbook. Springer, Cham, pp 131–149

    Google Scholar 

  10. Dickey DA, Fuller WA (1979) Distribution of the estimators for autoregressive time series with a unit root. J Am Stat Assoc 74(366a):427–431. https://doi.org/10.1080/01621459.1979.10482531

    Article  Google Scholar 

  11. EIA (2020) https://www.eia.gov/totalenergy/data/monthly/dataunits.php

  12. Erol U, Yu ESH (1987) Time series analysis of the causal relationships between US energy and employment. Resour Energy 9(1):75–89. https://doi.org/10.1016/0165-0572(87)90024-7

    Article  Google Scholar 

  13. Erol U, Yu ESH (1990) Spectral analysis of the relationship between energy consumption, employment, and business cycles. Resour Energy 11(4):395–412. https://doi.org/10.1016/0165-0572(90)90006-5

    Article  Google Scholar 

  14. Fromentin V, Tadjeddine Y (2020) Cross-border workers and financial instability: a frequency domain causality analysis applied to the Luxembourg financial centre. Appl Econ Lett 27(4):280–285. https://doi.org/10.1080/13504851.2019.1613496

    Article  Google Scholar 

  15. Geweke J (1982) Measurement of linear dependence and feedback between multiple time series. J Am Stat Assoc 77(378):304–313. https://doi.org/10.1080/01621459.1982.10477803

    Article  Google Scholar 

  16. Glasure YU, Lee AR (1995) Relationship between US energy consumption and employment: Further evidence. Energy Sources 17(5):509–516. https://doi.org/10.1080/00908319508946099

    Article  Google Scholar 

  17. Glasure YU, Lee AR (1996) The macroeconomic effects of relative prices, money, and federal spending on the relationship between US energy consumption and employment. J Energy Dev 22(1):81–91 https://www.jstor.org/stable/24808838

    Google Scholar 

  18. Granger CWJ (1969) Investigating Causal Relations by Econometric Models and Cross-spectral Methods. In: Investigating causal relations by econometric models and cross-spectral methods. J Econometric Soc, Econometrica, pp 424–438. https://doi.org/10.2307/1912791

    Google Scholar 

  19. Hartley PR, Medlock KB, Temzelides T, Zhang X (2015) Local employment impact from competing energy sources: Shale gas versus wind generation in Texas. Energy Econ 49:610–619. https://doi.org/10.1016/j.eneco.2015.02.023

    Article  Google Scholar 

  20. Hosoya Y (1991) The decomposition and measurement of the interdependency between second-order stationary processes. Probab Theory Relat Fields 88(4):429–444. https://doi.org/10.1007/BF01192551

    Article  Google Scholar 

  21. Hu S, Cao Y, Zhang J, Kong W, Yang K, Zhang Y, Li X (2012) More discussions for granger causality and new causality measures. Cogn Neurodyn 6(1):33–42. https://doi.org/10.1007/s11571-011-9175-8

    Article  Google Scholar 

  22. Hu S, Dai G, Worrell GA, Dai Q, Liang H (2011) Causality analysis of neural connectivity: critical examination of existing methods and advances of new methods. IEEE Transactions on Neural Networks 22(6):829–844

    Article  Google Scholar 

  23. IRENA (2020) https://www.irena.org/Statistics

  24. Lawan MW, Gidigbi MO (2019) Causal link between employment and renewable energy consumption: Evidence from Nigeria. Eur J Appl Econ 16(1):30–40. https://doi.org/10.5937/EJAE15-19730

    Article  Google Scholar 

  25. Murry DA, Nan GD (1990) The energy consumption and employment relationship: a clarification. J Energy Dev:121–131 https://www.jstor.org/stable/24807902

  26. Özsoy FN, Özpolat A (2020) Yenilenebilir enerji ve istihdam ilişkisi: Boostrap Granger nedensellik analizi. Uluslararası Ekonomi İşletme ve Politika Dergisi. 4(2):263–280 (in Turkish)

    Article  Google Scholar 

  27. Payne JE (2009) On the dynamics of energy consumption and employment in Illinois. J Reg Anal Policy 39(2):126-130. https://doi.org/10.22004/ag.econ.132432

  28. Phillips PC, Perron P (1988) Testing for a unit root in time series regression. Biom 75(2):335–346. https://doi.org/10.1093/biomet/75.2.335

    Article  Google Scholar 

  29. Singh N, Nyuur R, Richmond B (2019) Renewable energy development as a driver of economic growth: Evidence from multivariate panel data analysis. Sustain 11(2418):1–18. https://doi.org/10.3390/su11082418

    Article  Google Scholar 

  30. Tastan H (2015) Testing for spectral Granger causality. Stata J 15(4):1157–1166

    Article  Google Scholar 

  31. Tiwari AK (2014) The frequency domain causality analysis between energy consumption and income in the United States. Econ Aplicada 18(1):51–67. https://doi.org/10.1590/1413-8050/ea307

    Article  Google Scholar 

  32. Yu ESH, Chow PC, Choi JY (1987) The relationship between energy and employment: a reexamination. Energy Syst Policy; (United States), 11(4)

  33. Yu ESH, Jin JC (1992) Cointegration tests of energy consumption, income, and employment. Resour Energy 14(3):259–266. https://doi.org/10.1016/0165-0572(92)90010-E

    Article  Google Scholar 

  34. Zivot E, Andrews DW (2002) Further evidence on the great crash, the oil-price shock, and the unit-root hypothesis. J Bus Econ Stat 20(1):25–44. https://doi.org/10.1198/073500102753410372

    Article  Google Scholar 

Download references

Funding

This study did not receive any specific grant from funding agencies in the public, commercial, or not-for-profit sectors.

Author information

Affiliations

Authors

Contributions

Orkun Çelik conceived and designed the study. Orkun Çelik collected and contributed the data. Orkun Çelik performed the analysis and wrote the study. Orkun Çelik read and approved the final study.

Corresponding author

Correspondence to Orkun Çelik.

Ethics declarations

Conflict of interest

The author declares that he has no conflict of interest.

Informed consent

Informed consent was obtained from all individual participants included in the study.

Ethical approval

This study does not contain any studies involving animals performed by any of the author and also, does not contain any studies involving human participants performed by any of the author.

Additional information

Publisher’s note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Subject classification codes: E24; Q20; Q52

Responsible Editor: Philippe Garrigues

Rights and permissions

Reprints and Permissions

About this article

Verify currency and authenticity via CrossMark

Cite this article

Çelik, O. Assessment of the relationship between renewable energy and employment of the United States of America: Empirical evidence from spectral Granger causality. Environ Sci Pollut Res (2021). https://doi.org/10.1007/s11356-021-12414-x

Download citation

Keywords

  • Renewable energy
  • Employment
  • Job
  • Green job
  • Time series
  • Spectral Granger causality