Top PDF Renewable Energy Consumption and Economic Growth: Evidence from Vietnam

Renewable Energy Consumption and Economic Growth: Evidence from Vietnam

Renewable Energy Consumption and Economic Growth: Evidence from Vietnam

Between 2011-2015, the demand for electricity usage increased averagely at 10.6 percent per annum, lower than the 13.4 percent average growth rate of the period 2006-2010 (Institute of Energy 2016.). Electricity remains the highest production capacity in the final energy consumption mix, estimated to increase by 8 percent yearly on average until 2035, corresponding to a need for additional 93 giga watts of power generation capacity during the period. Nearly half of the new capacity is supposed to be powered by coal, while almost 25 percent will be supported by renewable energy (EA Energy Anlyses 2017). Our study adds to the existing literature using data set from Vietnam to investigate the impacts of the adaptation and usage of clean energy on economic growth.
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On the causal dynamics between economic growth, renewable energy consumption, CO2 emissions and trade openness: Fresh evidence from BRICS countries

On the causal dynamics between economic growth, renewable energy consumption, CO2 emissions and trade openness: Fresh evidence from BRICS countries

In a series of studies, Apergis and Payne (2010a, 2010b, 2011a, 2011b, 2011c, 2012) investigate the causal relationship between renewable energy consumption and economic growth for many groups of countries ranging from developed to developing countries. The authors use various cointegration techniques and causality approaches within a panel data framework. In the majority of cases, empirical results reveal that cointegration relationships and both short-run and long-run bi-directional causality exist among variables in question, proving the validity of the feedback hypothesis. Employing a panel error correction model within a multivariate model, Apergis et al. (2010) examine the causal relationship between CO2 emissions, nuclear energy consumption, renewable energy consumption and economic growth for a panel of nineteen developed and developing countries aver the period 1984- 2007. Empirical evidence shows that there exists short-run bi-directional causality between renewable and nuclear energy consumption and economic growth, supporting therefore the feedback hypothesis. The long-run analysis reveals the existence of a unidirectional causality running from the consumption of both nuclear and renewable energy to economic growth, which suggests the validity of the growth hypothesis.
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Energy Consumption and Economic Growth: Evidence from Vietnam

Energy Consumption and Economic Growth: Evidence from Vietnam

The importance of non-renewable, renewable and sustainable energy sources and energy consumption in the economic development strategy of a country is undeniable. The purpose of the paper is to investigate the impacts of energy consumption on the economic growth of Vietnam during the 1980-2014 period. By applying the Autoregressive Distributed Lag (ARDL) model of Pesaran et al. (2001), and the Granger causality test of Toda and Yamamoto (1995), the empirical results provide evidence that electricity consumption has positive impacts on Vietnam’s economic growth in both the short run and long run. For public policy prescriptions, the empirical evidence suggests that an exploration of new sources of renewable and sustainable energy is essential for long run economic development.
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Is Renewable Energy Consumption Effective to Promote Economic Growth in Pakistan: Evidence from Bounds Testing and Rolling Window Approach

Is Renewable Energy Consumption Effective to Promote Economic Growth in Pakistan: Evidence from Bounds Testing and Rolling Window Approach

4 have adverse impact on economic growth if economic growth Granger causes energy consumption/ neutral hypothesis is found between both the variables. If bidirectional causality is found both the variables / energy consumption Granger causes economic growth then new sources of energy should be explored. Energy is an important stimulus of production process and energy must Granger cause economic growth. An expansion in production is linked with energy demand and economic growth might Granger cause energy consumption. The main objective of present study is to investigate the relationship between renewable energy consumption capital, labour and economic growth in case of Pakistan of using Cobb-Douglas production function over the period of 1972Q1-2011Q4. In case of Pakistan, this study contributed to energy literature by five folds applying: (i) the ARDL bound testing approach to cointegration for long run relationship; (ii) the rolling window approach (RWA) to examine robustness of the ARDL results; (iii) OLS and ECM for long run and short run impacts of renewable energy consumption on economic growth; (d) the VECM Granger causality approach is to examine causal relationship between the variables and (v) innovative accounting approach to (IAA) test the robustness of the VECM Granger causality results. Our findings reveal that cointegration between renewable energy consumption economic growth, capital and labor exists in case of Pakistan. Further, our empirical evidence reports that renewable energy consumption has positive impact on economic growth. Capital and labour also adds in economic growth. Furthermore, estimated results indicated bidirectional causality relationship between renewable energy consumption and economic growth.
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Renewable and non renewable energy consumption and economic growth: Evidence from MENA Net Oil Importing Countries

Renewable and non renewable energy consumption and economic growth: Evidence from MENA Net Oil Importing Countries

In this paper, we use panel cointegration techniques to explore the relationship between renewable and non-renewable energy consumption and economic growth in a sample of 11 MENA Net Oil Importing Countries covering the period 1980 – 2012. The Pedroni (1999, 2004), Kao(1999) as well as Westerlund(2007) panel cointegration tests indicate that there is a long-run equilibrium relationship between real GDP, renewable energy consumption, non- renewable energy consumption, real gross fixed capital formation, and the labor force with elasticities estimated positive and statistically significant in the long-run. Results from panel error correction model expose that there is confirmation of bidirectional causality between renewable energy consumption and economic growth, between non-renewable energy consumption and economic growth as well as between renewable and non-renewable energy consumption that is evidence of their substitutability and interdependence in both the short and long-run supporting the feedback hypothesis. We suggest that Governments should implement policies that promote the development of renewable energy sector in order to realize economies of scale such as tax credits for renewable energy production, installation rebate for renewable energy systems as well as the establishment of markets for renewable energy certificates.
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Renewable Energy Consumption-Economic Growth Nexus in G7 Countries: New Evidence from a Nonlinear ARDL Approach

Renewable Energy Consumption-Economic Growth Nexus in G7 Countries: New Evidence from a Nonlinear ARDL Approach

Previous empirical studies have either assumed linearity in the context of cointegration long- run relationship between renewable energy consumption and economic growth or provided evidence in favor of nonlinearity relying on asymmetric Granger causality testing (Destek, 2016). However, these studies do not explicitly account for the possibility of nonlinearity in the cointegration system. This could result from an asymmetric reaction to positive and negative shocks and could be accommodated by the application of various types of regime- switching models. One way to do so relies in solely allowing for nonlinearity in the error correction mechanism by the application of either a threshold ECM proposed by Balke and Fomby (1997), a Markov-Switching ECM of Psaradakis et al. (2004) or a smooth transition regression ECM developed by Kapetanios et al. (2006). However, a general caveat of this kind of models is the common assumption that the underlying cointegrating relationship is represented by a linear combination of the nonstationary variables. But this might be excessively too restrictive since for the same reasons claimed for the error correction mechanism, the long-run cointegration relationship itself could be subject to asymmetry or nonlinearity.
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Reexamining the Foreign direct investment, Renewable energy consumption and Economic growth nexus: Evidence from a new Bootstrap ARDL test for Cointegration

Reexamining the Foreign direct investment, Renewable energy consumption and Economic growth nexus: Evidence from a new Bootstrap ARDL test for Cointegration

This study examines the long-run relationship among foreign direct investment, renewable energy consumption, and economic growth for seven Middle East and North Africa countries over the period 1980 – 2017 using a newly developed cointegration test by McNown et al. (2018), the bootstrap autoregressive distributed lag (ARDL) test. The long run analysis reveals evidence of cointegraion among FDI inflows, renewable energy consumption, and economic growth in all countries except Iran and Turkey, where real GDP is used as the dependent variable. A similar result is observed in economies, with the exception of Mauritania when FDI inflow is treated as a dependent variable. Whereas, when RE is taken as a dependent variable, cointegration does occur in Algeria, Mauritania, Morocco, and Tunisia. In regards to the direction of causality, the short-term analysis provides varied results among diverse variable for various countries. In this context, this study recommends increasing public awareness and attention in the advantages of renewable energy and clean technologies. In addition, MENA governments need to attract more FDI that includes green technologies and renewable energy sources as a way to promote energy efficiency. Thus could contribute to economic development and boost environmental quality.
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Empiric On The Relationship Between Pollutant Emissions, Renewable Energy Consumption, And Economic Growth: Evidence From Sub- Saharan African Countries

Empiric On The Relationship Between Pollutant Emissions, Renewable Energy Consumption, And Economic Growth: Evidence From Sub- Saharan African Countries

energy with little or no impact on climate change. Directive 2001/77/EC of the European Union defines renewable energy sources (RES) as non-fossil renewable energy sources that include wind, solar, geothermal, wave, tidal, hydropower, biomass, landfill gas, wastewater treatment plant gas and biogas [25]. The RES can not only reduce GHG emissions but also contribute to job creation and national energy supply protection. Given these submissions, it is imperative to investigate how the emissions of pollutants and renewable energy emitted from the use of fossil fuels can affect SSA economic growth. Different studies have been conducted to diagnose SSA countries ' growth and development problems, often using traditional growth models to identify the implications of certain fundamental variables, including capital formation, labor, human capital, and technology, for the region's growth and development. However, very few of these studies have identified energy use as a critical determinant of the region's economic growth [3]; [5]; [1] and [10]. Moreover, only fewer studies investigate the impact of energy on sub- Saharan Africa's economic growth, as they mostly focused on assessing the impact of renewable or non-renewable energy on the region's economic growth [2]. This study is, therefore, particularly interested in how renewable energy consumption and pollutants fit into the sub-Saharan African region's complex system of economic growth. The study aims to examine the effects of renewable energy consumption and emissions of pollutants as a CO2 proxy on SSA's economic growth to provide the SSA policymakers with political implications. This research overcomes literature gaps by using alternative modeling frameworks, longer samples than previous studies, recent advances in econometric techniques, and being the first to investigate the impact of renewable energy consumption along with pollutants on the region's economic growth.
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Renewable Energy Consumption, Economic Growth and Co2 Emissions: Evidence from Selected Mena Countries

Renewable Energy Consumption, Economic Growth and Co2 Emissions: Evidence from Selected Mena Countries

tests based on the within approach which includes four statistics (panel tests) and on the between approach which includes three statistics (group tests). In total, there are seven statistics for the tests of the null hypothesis of no cointegration in heterogeneous panels (for more details see: Farhani and Ben Rejeb, 2012b). However, all these tests are based on the residual and variants of Phillips and Perron (PP, 1988) and Dickey and Fuller (ADF, 1979). Table-5 shows Pedroni’s (2004) results indicate that we reject null hypothesis of cointegration at the 5% significance level except group rho-statistic. Kao (1999)’s residual cointegration tests are presented in Table-6, which reject null hypothesis of cointegration relationship between renewable energy consumption, GDP per capita and CO 2
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Renewable and non renewable energy consumption and economic growth: Evidence from MENA Net Oil Exporting Countries

Renewable and non renewable energy consumption and economic growth: Evidence from MENA Net Oil Exporting Countries

37 unidirectional causality between renewable energy consumption and economic growth in the short-run and bidirectional causality in the long-run while bidirectional causality was remarked between non-renewable energy consumption and economic growth in both the short and long-run that suggests the importance of this energy sources in these exporting economies. These findings reveal that the renewable energy sector is in its immaturity in the case of MENA exporting economies that have experienced remarkable growth, but as economic growth continues, more resources will become accessible for the renewable energy sector development. Further, barriers and obstacles related to the high cost of renewable energy in competition with subsidies to fossil fuels, the small size of the local market and the absence of a regional market, the lack of mastery of the technology and the weak capacity of local production of goods and services remain to hinder the renewable energy development in these countries. Obviously, the transition towards a renewable energy supply necessitates some form of government intervention in an attempt to conquer market distortions favoring fossil fuels. In fact, there are several initiatives and policies must be undertaken to promote and stimulate the introduction of renewable energy such as the development of several important regional and regionally based institutions and cooperation, renewable energy production tax credits, installation rebates for renewable energy systems, renewable energy portfolio standards, as well as the creation of markets for renewable energy certificates.
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Renewable energy consumption and economic growth in Indonesia  Evidence from the ARDL bounds testing approach

Renewable energy consumption and economic growth in Indonesia Evidence from the ARDL bounds testing approach

The data for the variables such as economic growth, capital and employment have been sourced from World Development Indicator while renewable energy consumption and carbon dioxide emissions were sourced from International Energy Agency (IEA). The data set comprises of observations for economic growth proxies by gross domestic product measured in millions of 2010 constant US dollars and renewable energy consumption, which is measured in million kilowatt- hours. Additional variables include, carbon dioxide emissions measured in metric tones, capital proxies by gross fixed capital formation and employment proxies by commercial, agricultural and manufacturing employments. The data used in this study covers a period between 1990 and 2014 and its extrapolated into quarterly data.
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The Effect of Renewable Energy Consumption on Economic Growth: Evidence from the Renewable Energy Country Attractive Index

The Effect of Renewable Energy Consumption on Economic Growth: Evidence from the Renewable Energy Country Attractive Index

insights like the problem of and the best way to increase renewable investment [77]. This study does not consider these issues, which may have direct as well as indirect effects on economic growth in the process of renewable deployment. Developing an investment climate, improving human resources, and removing all financial and political obstacles are significant steps toward the deployment of renewable sources. For example, this process has also included in the majority of OECD nations, as well as other nations. Financial considerations, investment subsidies, solar cells sales tax exemptions, feed-in tariffs, tax or credit incentives, green certificate trading, and establishing quota are significant tools for continuous deployment. Power planners, international cooperation organizations, government utilities on energy policy, and related organizations need to work together to enforce renewable energy deployment policies.
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Does renewable energy consumption drive economic growth: Evidence from Granger causality technique

Does renewable energy consumption drive economic growth: Evidence from Granger causality technique

Table 7 reported that the sign of ECT (-0.07) coefficient is significant and negative, in line with the a priori expectation. This validates that there is a long run causality flowing from renewable energy consumption, carbon dioxide emissions, trade openness and capital formation to economic growth. The long run results further suggested a long run causality flowing from economic growth, renewable energy consumption, trade openness and capital formation to carbon dioxide emissions. This is because the coefficient of the lagged error term (-0.118) was found to be negative and significant. The existence of a long run causality flowing from renewable energy consumption to economic growth suggest that the energy policies such as energy conservation cannot be applied in the long run as this will have adverse effect economic growth. It agrees with the studies conducted by Omri, Mabrouk and Sassi-Tmar (2015) for Hungary, India, Japan, Netherlands, and Sweden
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The Relationship between Renewable and Nonrenewable Energy Consumption and Economic growth in G7 countries:  Evidence from Bootstrap Panel Causality Test

The Relationship between Renewable and Nonrenewable Energy Consumption and Economic growth in G7 countries: Evidence from Bootstrap Panel Causality Test

energy consumption and economic growth has begun to be tested empirically. Narayan and Smyth (2008) reported that energy consumption and capital stock affected economic growth positively for the G7 countries both in the short and long run. Tugcu et al. (2012) used the ARDL bounds testing and Hatemi-J causality test and found that the growth hypothesis was valid only in Japan in terms of nonrenewable energy consumption. They also confirmed the validity of the conservation hypothesis for Germany and the feedback hypothesis for the UK and Japan in terms of renewable energy consumption. Chang et al. (2015) examined the causality relationship between renewable energy consumption and economic growth and confirmed the validity of the conservation hypothesis for France and the UK, and the growth hypothesis for Germany and Japan. Mutascu (2016) also examined the causality relationship between energy consumption and economic growth and found that the feedback hypothesis was valid in Canada, Japan, and the United States while the conservation hypothesis was valid in France and Germany. Destek and Okumus (2017) divided energy consumption into the consumption of oil, coal and natural gas and examined their relationship with economic growth. Their findings revealed that the growth hypothesis was valid in Italy, Japan and the United States for oil consumption, the conservation hypothesis was valid in the UK, and the feedback hypothesis was valid in Germany. The growth hypothesis was valid in Italy, Japan, the UK and the United States, and the feedback hypothesis was valid in Germany in terms of natural gas consumption. Finally, the validity of the growth hypothesis was confirmed for Canada, and the conservation hypothesis was confirmed in the United States for the relationship between coal consumption and economic growth.
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The renewable energy consumption and growth in the G 7 countries: Evidence from historical decomposition method

The renewable energy consumption and growth in the G 7 countries: Evidence from historical decomposition method

4 al. [23] also found bidirectional causality between renewable energy use and economic growth. Enriching the analysis using different methods, i.e. autoregressive distributed lag (ARDL) model, VECM Granger causality and innovation accounting approaches, Shahbaz et al. [38] support feedback hypothesis regarding renewable energy consumption and economic growth for Pakistan. Using rolling window approach (RWA), they revealed that renewable energy consumption, capital, and labor have a positive effect on economic growth except few quarters. Using a dynamic panel data model, Saidi and Mbarek [37] found that bidirectional causality exists between renewable energy consumption and real GDP per capita for nine developed countries over the 1990-2013 period. Moreover, Ocal and Aslan [31] maintained that renewable energy consumption has positive effects on economic growth for the new EU member countries by utilizing the asymmetric causality test and the ARDL approach. Chang et al [14] investigated the causal link between renewable energy consumption and economic growth in G-7 countries employing the heterogeneous panel Granger causality method and found bidirectional evidence with regard to this relation. Destek and Aslan [16] found evidence that renewable energy consumption plays a vital role in economic growth in Peru, Greece and South Korea among 17 emerging countries. Furthermore, more recent studies such as Amri [4], Bhattacharya et al. [11], Destek [17], Lu [27], Saad and Taleb [35], Troster et al. [40] investigated the bi-directional causality between renewable energy consumption and economic growth and reached different results for various countries and country groups.
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Examining Renewable Energy and Economic Growth: Evidence from 22 OECD Countries

Examining Renewable Energy and Economic Growth: Evidence from 22 OECD Countries

To investigate whether renewable energy consumption influence growth, I make use of data on 22 countries that are members of the Organization of Economic Development (OECD). The countries included are: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Iceland, Ireland, Italy, Japan, Luxembourg, Netherlands, New Zealand, Norway, Portugal, Spain, Sweden, Switzerland, United Kingdom, and the United States. Analyzing the way that certain factors influence growth over time requires a specific type of data called time series data. Time series data refers to measurements taken over time, as opposed to cross sectional data which refers to observations at a single point in time. Analyzing time series data comes with its own challenges. This is because data from one year almost certainly influences the data from following years. Lagged independent variables can be used when it is expected that X affect Y after a period of time. More complicated cases exist when the impact of an
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Renewable and non-renewable energy consumption and economic activities: Further evidence from OECD countries

Renewable and non-renewable energy consumption and economic activities: Further evidence from OECD countries

This article examines the dynamic relationship between renewable and non-renewable energy consumption and industrial output and GDP growth in OECD countries using data over the period of 1980-2011. The panel cointegration technique allowing structural breaks is used for empirical investigation. The results show that there is a long-term equilibrium relationship among non-renewable and renewable energy sources, industrial output and economic growth. The panel causality analyses show bidirectional causality between industrial output and both renewable and non-renewable energy consumption in the short and long run. However, there is evidence of bidirectional short-run relationship between GDP growth and non-renewable energy consumption while unidirectional causality between GDP growth and renewable energy consumption. These results indicate that OECD economies still remain energy-dependent for their industrial output as well as overall economic growth. However, expansion of renewable energy sources is a viable solution for addressing energy security and climate change issues, and gradually substituting renewable to non-renewable energy sources could enhance a sustainable energy economy.
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CO2 emissions, energy consumption and economic growth: Evidence from the Trans-Pacific Partnership

CO2 emissions, energy consumption and economic growth: Evidence from the Trans-Pacific Partnership

Mexico, Peru, and Vietnam, but a positive effect for Malaysia and New Zealand. The evidence for Canada and Chile is inconclusive. An interesting implication is that, based on the specific country characteristics, trade expansion could be more harmful than beneficial for the environment. As such, different countries should encourage the implementation of an appropriate strategy and policy in favour of trading environmentally-friendly products in order to gain the benefits from the establishment of the CPTPP, as well as to minimize the negative impacts on the environment of conducting international trade.
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Energy consumption and economic growth in Botswana: Empirical evidence from a disaggregated data

Energy consumption and economic growth in Botswana: Empirical evidence from a disaggregated data

The causal relationship between energy consumption and economic growth has been examined extensively in a number of countries in recent years, with conflicting results. Three views exist regarding the relationship between energy consumption and economic growth. The first view, which posits that energy consumption Granger-causes economic growth, has been supported by studies like those of Chang et al. (2001) for the case of Taiwan; Wolde-Rufael (2004) for Shanghai; Lee (2005) for the case of developing countries; Altinay and Karagol (2005) for Turkey; Chiou-Wei et al. (2008) for Taiwan, Hong Kong, Malaysia and Indonesia; Akinlo (2009) for Nigeria; Odhiambo (2009a) for Tanzania; Odhiambo (2010) for the case of South Africa and Kenya; Chu (2012) for the case of 13 countries; Dergiades et al. (2013) for Greece; Muhammad et al. (2013) for Pakistan; Odhiambo (2014) for the case of Uruguay and Brazil; Abosedra et al. (2015) for Lebanon; Iyke (2015) for Nigeria; Tang et al. (2016) for Vietnam; Rahman (2017) for the case of Asian populous countries; Saidi et al. (2017) for the case of the European countries; Cai et al. (2018) for the case of Canada, Germany and the US; Le and Quah (2018) for the case of 14 selected countries in the Asia and the Pacific region; Bekun et al. (2019) for South Africa; and more recently Rahman et al. (2020) for the case of China when coal and oil consumption are used as proxies for energy consumption.
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Economic growth, energy consumption, and environment : assessing evidence from OECD countries

Economic growth, energy consumption, and environment : assessing evidence from OECD countries

The empirical evidence suggests that renewable and non-renewable energy consumption stimulate economic growth in OECD countries. However, comparing the magnitudes of their coefficients confirms that non-renewables are still the dominant type of energy utilised in the process of economic growth. Similar results are obtained for industrial output, indicating that although the share of the use of non- renewable energy is declining compared with the share of renewable sources, non- renewables still play a considerable role in industrial production in developed countries today. The results also indicate that while oil and natural gas consumption positively and significantly influence economic growth, no significant relationship is observed between coal consumption and economic growth. It seems to be due to emerging policies that try to curb pollutant emissions by imposing a cost on higher- carbon fuels that in turn results in declined demand for coal in developed countries. In contrast, even though policies seek to slow consumption growth of oil, it is still the dominant fuel particularly in the transport sector. According to the EIA, since developed countries tend to have higher vehicle ownership per capita, oil consumption within the OECD transportation sector usually accounts for a larger share of total oil consumption than in non-OECD countries. In addition, oil is used in many ways, from the manufacture of goods, to transport of goods and people, to food production, to operating construction equipment, to mining. Therefore, it seems not to be achievable to substitute oil for clean energy in the near future. However, natural gas, which has the second position after oil, has an important feature in that it generates less carbon emissions compared with the other fossil fuels. Thus, fuel transformation at least from coal and/or oil to natural gas should be taken into account by policymakers.
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