Measuring the effect of trade liberalisation on the consumption of non-renewable energy sources in Latin America and the Caribbean Countries

• Matheus Koengkan ^[1] ; José Alberto Fuinhas ^[2] ; Isabel Vieira ^[3]
  1. [1] Universidade de Aveiro

     Universidade de Aveiro

     Vera Cruz, Portugal

     
  2. [2] Universidade de Coimbra

     Universidade de Coimbra

     Coimbra (Sé Nova), Portugal

     
  3. [3] Universidade de Évora

     Universidade de Évora

     Senhora da Saúde, Portugal

     

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• Localización: Economics and Business Letters, ISSN-e 2254-4380, Vol. 10, Nº. 4, 2021, págs. 349-358
• Idioma: inglés
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• Resumen

  • This article investigates the impact of trade openness on the consumption of fossil fuels for a panel of fourteen LAC countries over the period from 1990 to 2014. To this end, a PARDL model in unrestricted error-correction form is estimated. The results of the regression indicate that the impact of economic growth and the elasticity of trade openness are positive and statistically significant at 1%. Both contribute to increase the consumption of fossil fuels in the LAC countries. However, the impact and elasticity of the consumption of renewable energy are negative and statistically significant at 1% and 5% levels, thus contributing to decrease the consumption of fossilfuels.