Modeling the Long-Term Relationships between Renewable Energy and the Human Capital Index on Economic Growth in the German Economy

Another issue as important as the realization of economic growth is the stabilization of growth. Therefore, determining the factors affecting economic growth well and developing policies in this direction will ensure stable growth. In this section, a research on Germany’s economic growth has been conducted. In this direction, the effects of human capital index, physical capital, primary energy consumption, renewable energy consumption and technological innovation on economic growth were investigated. The analysis period of the study covers the annual data of 1990–2021. According to the empirical findings, primary energy consumption, physical capital, renewable energy consumption, and human capital index increase economic growth by 0.4%, 0.6%, 0.3%, and 1.8%, respectively. On the other hand, an increase in technological innovation decreases economic growth by 0.2%. The effect of variables other than technological innovation on growth is as expected. It is predicted that the contribution of innovation to growth can be improved by focusing on the reasons for this unexpected effect.