Inspecting energy consumption, capital formation and economic growth nexus in Pakistan

2022 ◽  
Vol 50 ◽  
pp. 101845
Author(s):  
Muhammad Asghar Khan ◽  
Raja Rehan ◽  
Imran Umer Chhapra ◽  
Anjali Bai
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Capital Formation

scholarly journals ECONOMIC GROWTH, ENERGY CONSUMPTION AND HUMAN CAPITAL FORMATION: IMPLICATION FOR KNOWLEDGE-BASED ECONOMY

2020 ◽  
Vol 10 (1) ◽  
pp. 37-43 ◽  
Author(s):  
Bosede Comfort Olopade ◽  
Henry Okodua ◽  
Muyiwa Oladosun ◽  
Oluwatoyin Matthew ◽  
Ese Urhie ◽  
...  
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Energy Consumption ◽  
Capital Formation ◽  
Human Capital Formation ◽  
Knowledge Based ◽  
Knowledge Based Economy ◽  
Growth Energy

scholarly journals Determinants of Energy Consumption in Egypt: The Wavelet Coherence Approach

2021 ◽  
Vol 16 (2) ◽  
pp. 186-205
Author(s):  
Jamiu Adetola Odugbesan ◽  
Tomiwa Sunday Adebayo
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Energy Consumption ◽  
Causal Relationship ◽  
Sustainable Energy ◽  
Capital Formation ◽  
Wavelet Coherence ◽  
Significant Determinant ◽  
Positive Correlation

Abstract Several studies have examined the implications of different macroeconomics variables on energy consumption, but the findings have been mixed, in addition, the study in the context of Egypt have been scant in the literature. Thus, our study investigates economic growth, gross capital formation, urbanization, and import as the determinants of energy consumption in Egypt using a time series from 1971 to 2017, and employed a wavelet coherent technique for the analysis. This study demonstrates a positive correlation between energy consumption and urbanization at different scales, as well as revealing a bidirectional causal relationship between the two variables. Moreover, this study shows a positive correlation between energy consumption and import, and also revealed import as a significant determinant of energy consumption at different frequencies in Egypt. In addition, an evidence of bidirectional causality was found between economic growth and energy consumption, while gross capital formation was also found to cause energy consumption in Egypt during the period of study. Our findings provide empirical rationale for the initiations by the policymakers in Egypt towards formulating policies that will ensure sustainable energy consumption in the country.

scholarly journals Energy Consumption And Economic Growth In China: New Evidence From The Co-Integrated Panel VAR Model

2012 ◽  
Vol 1 (2) ◽  
pp. 51-64 ◽  
Author(s):  
Shuai Chen
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Labor Force ◽  
Capital Formation ◽  
Var Model ◽  
Panel Var ◽  
Real Gdp ◽  
Vec Model ◽  
Long Run ◽  
Short Run

This study is conducted to explore the relationship between energy consumption and economic growth in China over the period 1995-2010 using the panel time-series techniques under a multivariate framework. The results reveal that there are long-run co-integration relationship among variables real GDP, energy consumption, capital formation and labor force. Furthermore, based on the panel VEC model, there is bidirectional causality between economic growth and energy consumption, which is consistent with the growth hypothesis in terms of the energy consumption-growth nexus. The unidirectional causality from capital formation to energy consumption reveals that energy consumption cannot affect economic growth through capital formation. Additionally, real GDP, energy consumption, capital formation and labor force each respond to short-run deviations from long-run equilibrium with a slow adjustment speed. Finally, by estimating the panel VAR model, it is found that the responses of real GDP to a shock of energy consumption are negative, whereas the shock of real GDP changes is positive with most of the energy consumption response being absorbed during the six years. By variance decompositions derived from the orthogonalized impulse-response coefficient matrices, a shock in the energy consumption takes the biggest effect on real GDP in both short-run and long-run.

scholarly journals Examining the Relationship Between Energy Consumption, Economic Growth and Environmental Degradation Indonesia: Do Capital and Trade Openness Matter?

2021 ◽  
Vol 10 (4) ◽  
pp. 769-778
Author(s):  
Nurul Anwar ◽  
Khalid Eltayeb Elfaki
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Environmental Degradation ◽  
Trade Openness ◽  
Ordinary Least Squares ◽  
Capital Formation ◽  
Fixed Capital ◽  
Long Run ◽  
Fixed Capital Formation ◽  
The Relationship

This paper examines the relationship between energy consumption, economic growth, and environmental degradation in Indonesia in 1965-2018 with the inclusion of gross capital formation and trade openness as relevant factors. The autoregressive distributed lag model to cointegration, fully modified ordinary least squares, dynamic ordinary least squares, and canonical cointegrating regression approach applied to estimate this relationship. The result of cointegration confirms the existence of a cointegration relationship between energy consumption, economic growth, gross fixed capital formation, trade openness, and environmental degradation. The empirical result, in the long run, indicates that energy consumption, economic growth, and trade openness have a positive relationship with environmental degradation. However, the gross fixed capital formation was found to be negatively associated with environmental degradation. This implying that gross fixed capital formation plays a pivotal role to reduce environmental degradation in Indonesia.  The error correction model coefficient indicates that the deviation of CO2 emissions from its long run equilibrium will be adjusted by 0.53% through the short run channel per annual. The findings of this paper propose implementing an energy policy that focuses on energy from environmentally friendly sources. Reverse the effect of openness to the international markets to improve and facilitate access to advanced and environmentally friendly technologies to mitigate environmental degradation and improve environmental quality.

Energy consumption and growth in South Asia: evidence from a panel error correction model

2015 ◽  
Vol 9 (3) ◽  
pp. 295-310 ◽  
Author(s):  
Harishankar Vidyarthi
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
South Asia ◽  
Capital Formation ◽  
Fixed Capital ◽  
Gdp Per Capita ◽  
Content Type ◽  
Long Run ◽  
Fixed Capital Formation ◽  
Per Capita

Purpose The purpose of the paper is to empirically examine the relationship between energy consumption and economic growth for a panel of five South Asian economies, namely, India, Pakistan, Bangladesh, Sri Lanka and Nepal over the period from 1971 to 2010 within a multivariate framework. Design/methodology/approach The study uses Pedroni cointegration and Granger causality test based on panel vector error correction model to examine long-run equilibrium relationship and direction of causation in the short and long run between energy consumption and economic growth using energy inclusive Cobb–Douglas production function for a panel of five South Asia countries, namely India, Pakistan, Bangladesh, Sri Lanka and Nepal. Findings Pedroni’s panel cointegration test indicates the long-run equilibrium relationship between economic growth per capita, energy consumption per capita and real gross fixed capital formation per capita for panel. Further, 1 per cent increase in energy consumption per capita increases the gross domestic product (GDP) per capita by 0.8424 per cent for the panel. Causality results suggest bidirectional causality between energy consumption per capita, gross fixed capital formation per capita and GDP per capita in the long run and unidirectional causality running from energy consumption per capita and gross fixed capital formation per capita to GDP per capita in the short run. Practical implications These South Asian countries should implement an expansionary energy policies through improving the energy infrastructure, energy efficiency measures and exploiting massive renewables’ availability for low-cost, affordable clean energy access for all, especially in the yet unserved rural and remote areas for further stimulating economic growth. Originality/value Implementing energy efficiency measures and massive renewables development (wind, solar and hydropower) may help the affordable and clean energy access and reducing fossils fuel dependence and its associated greenhouse emissions in South Asia.

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