78 © 2023 AESS Publications. All Rights Reserved. Renewable and non-renewable energy consumption and total factor productivity growth: The case of G20 countries Mohamed Neffati 1+ Rafik Jbir 2 Naceur Benzina 3 1 Al Imam Mohammad Ibn Saud Islamic University, Riyadh, Saudi Arabia, and High School Business, Sfax University, Tunisia. Email: neffati.med1@gmail.com 2 University of Tunis, ESSEC, Tunisia, and Umm Al Qura University, College of Islamic Economics and Finance, Makkah, Saudi Arabia. Email: jbir.rafik@gmail.com 3 Al Imam Mohammad Ibn Saud Islamic University, Riyadh, Saudi Arabia, and FSEG, Sfax University, Tunisia. Email: nzzinnin@yahoo.fr (+ Corresponding author) ABSTRACT Article History Received: 13 March 2023 Revised: 7 May 2023 Accepted: 16 May 2023 Published: 24 May 2023 Keywords Economic growth Granger causality Non-renewable energy consumption Panel data Renewable energy Total factors productivity. JEL Classification: G7; G20. The purpose of this paper is to investigate the short and long-run relationships between renewable, non-renewable energy consumption (NREC) and economic growth. This study highlights the importance of renewable energy consumption to improve the total factor productivity (TFP) in G20 countries spanning on 2002-2018. Using the approach of panel Feasible Generalized Least Squares (PFGLS) cross-section and period weight and FGLS cross-section and period sur robust, we have divided the sample in three groups: G20, G7 and G20-G7. The findings show that there is a negative effect of Renewable Energy Consumption (REC) on TFP in G7 and a positive effect in the other groups. Our main results indicate that there is a strong significant and positive relationship between REC and TFP growth in the long run in the hull G20 countries. But, in the G7, there is a negative relationship due to the negative effect in the environment. The results of granger causality tests indicate the existence of one-way causality from NREC to TFP in G20 and G20-G7, while from TFP to NREC in G7. To boost overall productivity and maintain sustainable development, all nations must invest in renewable energy. Contribution/ Originality: The originality of this research lies in the statement that when the goal is to achieve strong growth, little attention is paid to the type of energy used. As developed countries in the G7 call for replacing non-renewable energies with renewable energies, but they continue to consume the first energy excessively. 1. INTRODUCTION Energy is one of the mains elements of human life. Without energy, life will be very difficult. It seems to be necessary to heating, electricity and produce goods and services. Today, there is an acceleration of development of the over the last decades. Energy, as the important commodities in world trade, has proved to have an ever more important role in economic growth of many countries. From economic point of vu, energy is considered as one of factors of production. Indeed, it is used to achieving sustainable economic growth. There are many studies have focused on the role of energy in economic. The first study is the study of Kraft and Kraft (1978) which have analyzed the relationship of energy and growth national product (GNP). After this study, various researchers have investigated the link between energy and economic activity (Akinlo, 2008; Balat, 2008; Balcilar, Ozdemir, & Arslanturk, 2010; Zaidi, Jbir, & Gmidene, 2014). Stern (1993) as ecologic economist believed that energy is the most important growth Energy Economics Letters ISSN(e): 2308-2925 DOI: 10.55493/5049.v10i1.4806 Vol. 10, No. 1, 78-89. © 2023 AESS Publications. All Rights Reserved. URL: www.aessweb.com