Long-run relationship between sectoral productivity and energy consumption in Malaysia: An aggregated and disaggregated viewpoint

The aim of this study is to examine the empirical cointegration, long-run and short-run dynamics and causal relationships between carbon emissions, energy consumption and economic growth in 14 Danube region countries over the period of 1990–2019. The autoregressive distributed lag (ARDL) bounds testing methodology was applied for each of the examined variables as a dependent variable. Limited by the length of the time series, we excluded two countries from the analysis and obtained valid results for the others for 26 of 36 ARDL models. The ARDL bounds reliably confirmed long-run cointegration between carbon emissions, energy consumption and economic growth in Austria, Czechia, Slovakia, and Slovenia. Economic growth and energy consumption have a significant impact on carbon emissions in the long-run in all of these four countries; in the short-run, the impact of economic growth is significant in Austria. Likewise, when examining cointegration between energy consumption, carbon emissions, and economic growth in the short-run, a significant contribution of CO2 emissions on energy consumptions for seven countries was found as a result of nine valid models. The results contribute to the information base essential for making responsible and informed decisions by policymakers and other stakeholders in individual countries. Moreover, they can serve as a platform for mutual cooperation and cohesion among countries in this region.

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Does educational progress impact energy consumption? A causality test for India

International Journal of Energy Sector Management ◽

10.1108/ijesm-07-2020-0021 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Soumen Rej ◽

Barnali Nag

Keyword(s):

Energy Consumption ◽

Energy Supply ◽

Causality Test ◽

Content Type ◽

Vector Error Correction ◽

Educational Advancement ◽

Long Run ◽

Short Run ◽

Development Goals ◽

Per Capita

Purpose Both energy and education have been positioned as priority objectives under the itinerary of UN development goals. Hence, it is necessary to address the implicit inter relationship between these two development goals in the context of developing nations such as India who are trying to grow in both per capita income and socio economic factors whilst struggling with the challenges of a severe energy supply constrained economy. Design/methodology/approach In the present study, the causal relationship between energy consumption per capita and education index (EI) as a proxy of educational advancement is investigated for India for 1990–2016 using the Johansen-Juselius cointegration test and vector error correction model. Findings The empirical results infer although energy consumption per capita and EI lack short run causality in either direction, existence of unidirectional long run causality from EI to per capita energy consumption is found for India. Further, it is observed that energy consumption per capita takes around four years to respond to unit shock in EI. Research limitations/implications The findings from this study imply that with the advancement of education, a rise in per capita energy consumption requirement can be foreseen on the demand side, and hence, India’s energy policy needs to emphasize further its sustainable energy supply goals to meet this additional demand coming from a population with better education facilities. Originality/value The authors hereby confirm that this manuscript is entirely their own original study and not submitted elsewhere.

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Is Energy a Requirement for, or a Consequence of Economic Growth in Mauritius?

10.21203/rs.3.rs-90814/v1 ◽

2020 ◽

Author(s):

HArris Neeliah ◽

Boopen SEETANAH

Keyword(s):

Economic Growth ◽

Energy Consumption ◽

Voluntary Contraction ◽

Net Energy ◽

Omitted Variables ◽

Production Models ◽

Long Run ◽

Short Run ◽

Growth Production ◽

Dynamic Time

Abstract The non-reproducible nature of energy, coupled to its essentiality either as a direct or an intermediary input, makes it a crucial factor of production. We posit that it is, a complement to capital and labor and should be included in growth production models. Mauritius is a net energy importer, hence information about the nexus between energy consumption and economic growth is central to policy-making. This paper attempts to analyze this relationship for Mauritius within a multivariate framework over the period 1961 to 2019. The work adopts a dynamic time series framework (VECM approach) to account for dynamism, causality, endogeneity and omitted variables. Empirical results reveal long-run and short-run elasticities of energy consumption on economics growth of 0.33 and 0.17 respectively, thus giving credence to the thesis that energy is an important growth determinant in Mauritius. We also uncovered bi-directional causality between energy consumption and economic growth in both the long-run and the short-run. Therefore, unexpected and/ or voluntary contraction in either economic growth or energy consumption could result in a ‘feedback effect’ and dent either.JEL: Q4, O1

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The Impact of Industrialization, Trade Openness, Financial Development, and Energy Consumption on Economic Growth in Indonesia

Economies ◽

10.3390/economies9040174 ◽

2021 ◽

Vol 9 (4) ◽

pp. 174

Author(s):

Khalid Eltayeb Elfaki ◽

Rossanto Dwi Handoyo ◽

Kabiru Hannafi Ibrahim

Keyword(s):

Economic Growth ◽

Energy Consumption ◽

Least Squares ◽

Financial Development ◽

Correction Term ◽

Trade Openness ◽

Ordinary Least Squares ◽

Distributed Lag ◽

Long Run ◽

The Impact

This study aimed to scrutinize the impact of financial development, energy consumption, industrialization, and trade openness on economic growth in Indonesia over the period 1984–2018. To do so, the study employed the autoregressive distributed lag (ARDL) model to estimate the long-run and short-run nexus among the variables. Furthermore, fully modified ordinary least squares (FMOLS), dynamic least squares (DOLS), and canonical cointegrating regression (CCR) were used for a more robust examination of the empirical findings. The result of cointegration confirms the presence of cointegration among the variables. Findings from the ARDL indicate that industrialization, energy consumption, and financial development (measured by domestic credit) positively influence economic growth in the long run. However, financial development (measured by money supply) and trade openness demonstrate a negative effect on economic growth. The positive nexus among industrialization, financial development, energy consumption, and economic growth explains that these variables were stimulating growth in Indonesia. The error correction term indicates a 68% annual adjustment from any deviation in the previous period’s long-run equilibrium economic growth. These findings provide a strong testimony that industrialization and financial development are key to sustained long-run economic growth in Indonesia.

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INTERACTION BETWEEN ENERGY CONSUMPTION AND ECONOMIC GROWTH IN INDIA

International Journal of Research -GRANTHAALAYAH ◽

10.29121/granthaalayah.v5.i4.2017.1795 ◽

2017 ◽

Vol 5 (4) ◽

pp. 62-71 ◽

Cited By ~ 1

Author(s):

Nandakumar ◽

Devasia ◽

Thomachan

Keyword(s):

Economic Growth ◽

Energy Consumption ◽

World Bank ◽

Energy Use ◽

Annual Data ◽

Sample Period ◽

Development Indicators ◽

Long Run ◽

World Development

This Paper examines the relation between energy use and GDP percapita of India. It used the annual data from 1971-2013, obtained from World Development Indicators of World Bank for India. The variables used in this study are – Percapita GDP and Energy consumption in Kilograms of oil equivalent (Kgoe). The result shows long run relation between energy use and GDP percapita. The result also shows that Energy Use granger causes GDP percapita of India for the sample period.

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Energy, Emissions and the Economy: Empirical Analysis from Pakistan

The Pakistan Development Review ◽

10.30541/v53i4iipp.383-401 ◽

2014 ◽

Vol 53 (4II) ◽

pp. 383-401 ◽

Cited By ~ 2

Author(s):

Muhammad Tariq Mahmood ◽

Sadaf Shahab

Keyword(s):

Economic Growth ◽

Energy Consumption ◽

Co2 Emissions ◽

Fossil Fuels ◽

Kuznets Curve ◽

Bounds Testing ◽

Long Run ◽

Negative Impacts ◽

Energy Emissions ◽

Carbon Dioxide Co2

It is now an established fact that the most important environmental problem of our era is global warming.1 The rising quantity of worldwide carbon dioxide (CO2) emissions seems to be escalating this problem. As the emissions generally result from consumption of fossil fuels, decreasing energy spending seems to be the direct way of handling the emissions problem. However, because of the possible negative impacts on economic growth, cutting the energy utilisation is likely to be the “less preferred road”. Moreover, if the Environmental Kuznets Curve (EKC) hypothesis applies to the emissions and income link, economic growth by itself may become a solution to the problem of environmental degradation [Rothman and de Bruyn (1998)]. Coondoo and Dinda (2002), however, argue that both developing and developed economies must sacrifice economic growth. Still, countries may opt for different policies to fight global environmental problems, mainly depending on the type of relationship between CO2 emissions, income, and energy consumption over the long run [Soytas and Sari (2006)]. Hence, the emissions-energy-income nexus needs to be studied carefully and in detail for every economy, but more so for the developing countries. In this paper, we investigate the relationship between energy consumption, CO2 emissions and the economy in Pakistan from a long run perspective, in a multivariate framework controlling for gross fixed capital, labour and exports by employing ARDL bounds testing approach.

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Agricultural land usage and tourism impact on renewable energy consumption among Coastline Mediterranean Countries

Energy & Environment ◽

10.1177/0958305x18779577 ◽

2018 ◽

Vol 29 (8) ◽

pp. 1438-1454 ◽

Cited By ~ 60

Author(s):

Andrew Adewale Alola ◽

Uju Violet Alola

Keyword(s):

Renewable Energy ◽

Energy Consumption ◽

Carbon Emission ◽

Agricultural Land ◽

Tourism Development ◽

Renewable Energy Consumption ◽

Land Usage ◽

Mediterranean Countries ◽

Long Run ◽

Short Run

Abstact This empirical study aims to investigate the dynamic response of renewable energy consumption to long-run disequilibrium and short-run impact of tourism development and agricultural land usage for the period of 1995 to 2014 in 16 Coastline Mediterranean Countries. For this reason, a dynamic Autoregressive Distributed Lag approach is employed in a multivariate and two-model framework such that carbon emission and gross domestic product are being controlled for in the models. Significantly, there is evidence of a joint impact of tourism development and agricultural land usage on renewable energy consumption. With a speed of adjustment of 21.6% from short-run disequilibrium to long run, their respective panel elasticities are 0.33 and negative 1.60 in the long run. Significant evidence shows that nine of the Coastline Mediterranean Countries have tourism development as a short-run factor while Slovenia and Cyprus exhibit a short-run common factor. Also, Granger causality evidences from carbon emission, gross domestic product and tourism development to renewable energy are all with feedbacks. However, Granger causality from agricultural land usage to renewable energy is without feedback. In the region, effective policy implementations through the collaborative effort of stakeholders will ensure a sustainable renewable energy development amidst agricultural and tourism activities.

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Economic globalization and energy consumption patterns in Organisation for Economic Co-operation and Development economies

Energy & Environment ◽

10.1177/0958305x211042537 ◽

2021 ◽

pp. 0958305X2110425

Author(s):

Hemachandra Padhan ◽

Santosh Kumar Sahu ◽

Umakant Dash

Keyword(s):

Energy Consumption ◽

Economic Globalization ◽

Consumption Patterns ◽

Coal Consumption ◽

Cross Sectional ◽

Important Indicator ◽

Distributed Lag ◽

Long Run ◽

Energy Consumption Patterns ◽

The Impact

This study examines the impact of economic globalization on the patterns of energy consumption for 24 Organisation for Economic Co-operation and Development (OECD) economies from 1995 to 2015. We employ Westerlund cointegration, which shows a long-run association between economic globalization and energy consumption patterns. Furthermore, cross-sectional autoregressive distributed lag models (CS-ARDL) results explain the short-run and long-run relationship between the series. The results further explain that economic globalization reduces oil and coal consumption while accelerating gas consumption in OECD economies. We additionally employ the Eberhardt augmented mean group test to verify consistency with CS-ARDL results. The empirical evidence of this study suggests that OECD economies’ policymakers should prioritize economic globalization in framing policies related to energy consumption. Furthermore, allocating funds for better technology related to high polluting fuels should be one of the crucial considerations arising from this study. Finally, we recommend economic globalization as an important indicator to address the issues related to OECD economics’ environmental and ecological footprints.

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On the restricted form of energy-growth nexus: a global level VECM approach and the historical structural breaks

International Journal of Energy Sector Management ◽

10.1108/ijesm-09-2019-0009 ◽

2020 ◽

Vol 14 (6) ◽

pp. 1205-1220

Author(s):

Luís Miguel Marques ◽

José Alberto Fuinhas ◽

António Cardoso Marques

Keyword(s):

Economic Growth ◽

Energy Consumption ◽

Positive Impact ◽

Global Level ◽

Global Energy ◽

Content Type ◽

Energy Growth ◽

Restricted Form ◽

Long Run ◽

The Impact

Purpose The purpose of this paper is to focus on global energy consumption using the economic growth nexus, the prevalent energy hypothesis at a global level and the impact of the main historical events assessed for the period from 1965 to 2015. Design/methodology/approach Given the confirmed presence of endogeneity and cointegration between energy consumption and economic growth, a vector error correction with structural dummies model was used. Furthermore, the impulse-response functions and variance decomposition were computed to evaluate the variables’ dynamics. Findings Bi-directional causality running from energy consumption to economic growth was found, both in the short and long-run, supporting the feedback hypothesis. It is proved that the 2008 crisis impacted on the global energy–growth nexus. Furthermore, there is evidence of the impact of the 1990s oil price shock on the nexus. Innovations in energy consumption have a positive impact on economic growth; however, this impact tends to be null in the long run. Practical implications The results suggest that at a global level, any energy policy should be carefully designed in order not to hamper economic growth. Countries should not remain indifferent to the policies that other countries might follow. Very few historical crises impacted on the global energy–growth nexus. Originality/value This paper offers a different approach to the study of the energy–growth nexus. The energy–growth nexus is analysed in the major macroeconomic aggregate. Global variables reveal their relevance as a benchmark in the energy–growth nexus. Furthermore, this paper arrives at some conclusions about how historical crises impact on global relationships.

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CO2 Emissions, Energy Consumption, and Economic Growth: New Evidence in the ASEAN Countries

Journal of Risk and Financial Management ◽

10.3390/jrfm12030145 ◽

2019 ◽

Vol 12 (3) ◽

pp. 145 ◽

Cited By ~ 6

Author(s):

Vo ◽

Keyword(s):

Economic Growth ◽

Renewable Energy ◽

Energy Consumption ◽

Granger Causality ◽

Co2 Emissions ◽

Causal Effect ◽

The Philippines ◽

Policy Implications ◽

Renewable Energy Consumption ◽

Long Run

The members of the Association of Southeast Asian Nations (ASEAN) have made several attempts to adopt renewable energy targets given the economic, energy-related, environmental challenges faced by the governments, policy makers, and stakeholders. However, previous studies have focused limited attention on the role of renewable energy when testing the dynamic link between CO2 emissions, energy consumption and renewable energy consumption. As such, this study is conducted to test a common hypothesis regarding a long-run environmental Kuznets curve (EKC). The paper also investigates the causal link between carbon dioxide (CO2) emissions, energy consumption, renewable energy, population growth, and economic growth for countries in the region. Using various time-series econometrics approaches, our analysis covers five ASEAN members (including Indonesia, Myanmar, Malaysia, the Philippines, and Thailand) for the 1971–2014 period where required data are available. Our results reveal no long-run relationship among the variables of interest in the Philippines and Thailand, but a relationship does exist in Indonesia, Myanmar, and Malaysia. The EKC hypothesis is observed in Myanmar but not in Indonesia and Malaysia. Also, Granger causality among these important variables varies considerably across the selected countries. No Granger causality among carbon emissions, energy consumption, and renewable energy consumption is reported in Malaysia, the Philippines, and Thailand. Indonesia experiences a unidirectional causal effect from economic growth to renewable energy consumption in both short and long run and from economic growth to CO2 emissions and energy consumption. Interestingly, only Myanmar has a unidirectional effect from GDP growth, energy consumption, and population to the adoption of renewable energy. Policy implications have emerged based on the findings achieved from this study for each country in the ASEAN region.

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