Physical Sciences and Mathematics Commons^™

Renewable-Energy Resources, Economic Growth And Their Causal Link, Yiyang Chen

Electronic Thesis and Dissertation Repository

This thesis examines the presence and strength of predictive causal relationship between re-newable energy prices and economic growth. We look for evidence by investigating the cases of Norway, New Zealand, and Canada’s two provinces of Alberta and Ontario. The usual vectorautoregressive model (VAR) and its various improved versions still assume constant parametersover time. We devise a Markov-switching VAR (MS-VAR) model in order to accommodate the observed time-dependent causal relation changes. Our proposed modelling approach is induced by the hidden Markov model methodologies in terms of an online parameter estimationthrough recursive filtering. The parameters of the MS-VAR model are governed by …