Revisiting the energy consumption–economic growth causal relationships in tails

2018 ◽  
Vol 45 (5) ◽  
pp. 898-909 ◽  
Author(s):  
Panayiotis Tzeremes
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Total Consumption ◽  
Content Type ◽  
Country Level ◽  
Causality Tests ◽  
The Usa ◽  
High Level ◽  
Quantile Causality ◽  
The Relationship

Purpose The purpose of this paper is to investigate the relationship between the energy consumption and the economic growth in the USA and in a sectoral level by using monthly data from January 1991 to May 2016. Design/methodology/approach While assessing the relationship at a country level, the authors also examine five sectors by using quantile causality. Findings The findings indicate the existence of a causality at the sectoral level in tails. More specifically, industrial and electric sectors cause the growth at the lower and higher levels. Residential, commercial and transportation sectors do not cause the growth in all levels. Total consumption causes the growth in the middle and low levels but not in the high level. Finally, the empirical evidence signifies an asymmetric relationship between the covariates. Practical implications The results imply that when the consumption deals conditions with fluctuation, it is likely to be affected by growth. In such a case, energy policies gear toward reducing or increasing energy intensity, improving energy efficiency, encouraging the use of alternative sources and investing in the development of technology. Originality/value The authors use, for the first time, the quantile causality for the case of energy consumption and economic growth. The quantile test is useful for a thorough comprehension of the causal relationship for this area. Compared to the OLS, which is used for the majority of causality tests, the quantile investigates the causality at the sectoral level in the tails.

Investigating energy consumption and economic growth for BRICS-T countries

2019 ◽  
Vol 16 (4) ◽  
pp. 184-195 ◽  
Author(s):  
Durmuş Çağrı Yıldırım ◽  
Seda Yıldırım ◽  
Isıl Demirtas
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Energy Savings ◽  
Panel Cointegration ◽  
Cointegration Test ◽  
Real Output ◽  
Content Type ◽  
Natural Logarithm ◽  
Panel Cointegration Test ◽  
The Relationship

Purpose The purpose of this paper is to explore the relationship between energy consumption and economic growth for Brazil, Russia, China, India, South Africa and Turkey (BRICS-T) countries. In this context, this study investigates energy consumption and real output in BRICS-T countries through panel cointegration. Design/methodology/approach The data include energy consumption and real output for BRICS-T countries and period of 1990–2014. The variables are transformed into natural logarithm. To analyze these data, this study employed Pedroni cointegration test, the second-generation panel cointegration test, Westerlund and Edgerton (2008) test and FMOLS test. Findings Results indicate that there is a bi-directional causality relationship between energy consumption and economic growth for BRICS-T countries. An increase in GDP leads to an increase in energy consumption and an increase in energy consumption leads to an increase in GDP. Research limitations/implications This study used data that include the period of 1990–2014 for BRICS-T countries. So, further studies can use different periods of data or different countries. Originality/value This study provides important evidence that countries with strong growth performance need to follow bi-directional energy policies to increase both energy investments and ensure energy savings.

scholarly journals A Systematic Review of the Relationship Between Energy Consumption and Economic Growth in GCC Countries

2020 ◽  
Vol 12 (9) ◽  
pp. 3845 ◽  
Author(s):  
Mohammed AlKhars ◽  
Fazlul Miah ◽  
Hassan Qudrat-Ullah ◽  
Aymen Kayal
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
United Arab Emirates ◽  
Survey Study ◽  
Individual Country ◽  
Energy Technologies ◽  
Country Level ◽  
Gcc Countries ◽  
The Individual ◽  
The Relationship

This survey study analyzed the existing literature on the relationship between energy consumption and economic growth in the six Gulf Cooperation Council (GCC) countries (Saudi Arabia, United Arab Emirates, Bahrain, Qatar, Oman and Kuwait). This study identified 59 articles published in 18 journals covering the period 2006–2019. The articles were grouped into two categories: the first category included studies analyzing the energy–growth relationship at the individual country level while the second category included studies analyzing the relationship at a multi-country level. The result of this study revealed that 18% of the observations supported the growth hypothesis, 26% supported the conservation hypothesis, 43% supported the feedback hypothesis and 13% supported the neutral hypothesis. As our analysis found a dominant support for the growth and feedback hypotheses, this implies that the focus of energy policies in GCC countries has been on the supply and the uninterrupted availability for the expansion and growth of their industrial and developmental activities. However, for a sustainable development and growth of the GCC economies and meeting the environmental challenges, there is an urgent need for the expansion of renewable energy technologies in the energy supply mix of GCC countries.

Economic growth and energy consumption nexus in Pakistan

2013 ◽  
Vol 2 (2) ◽  
pp. 251-275 ◽  
Author(s):  
Waqas Ahmed ◽  
Khalid Zaman ◽  
Sadaf Taj ◽  
Rabiah Rustam ◽  
Muhammad Waseem ◽  
...  
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Capita Income ◽  
Energy Demand ◽  
Electricity Consumption ◽  
Policy Implications ◽  
Per Capita Income ◽  
Content Type ◽  
Per Capita ◽  
The Relationship

PurposeThis study aims to examine the relationship between electricity consumption per capita (ELEC) and real per capita income (Y), as the direction of causation of this relationship remains controversial in the existing literature. It also seeks to explore the relationship between energy consumption per capita (ENC) and real per capita income, over a 34‐year period (between 1975 and 2009).Design/methodology/approachThe study uses Johansen cointegration technique to determine the short‐ and long‐run relationship between the variables. The authors also utilize Granger causality test to determine the causal relationship between the selected variables.FindingsThe study provides evidence of bi‐directional causality between the electricity consumption per capita and real per capita income on one hand; and energy consumption per capita and real per capita income on the other hand as the direction of causality has significant policy implications.Research limitations/implicationsThis study does not include all dimensions of the energy growth, but is limited to the three variables which the authors consider to be critical to economic development, including energy consumption, electricity consumption and economic growth.Originality/valueThe study uses a sophisticated econometric technique with additional tests of forecasting framework to examine the effect of energy demand on economic growth over a period of the next ten years, i.e. 2010‐2019, in the context of Pakistan. The impulse response describes the reaction of the system as a function of independent variable that parameterizes the dynamic behavior of the system.

Recent advances in the relationship between economic development and carbon emissions

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ziqi Yin ◽  
Xue Jin
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Energy Consumption ◽  
Carbon Emissions ◽  
High Frequency ◽  
Visual Analysis ◽  
Rapid Development ◽  
Content Type ◽  
Wide Range ◽  
The Relationship

PurposeWith the rapid development of the economy, carbon emissions have also risen sharply. This study explores the relationship between the two by combining the literature of relevant fields and maps the analytical framework from the knowledge base to the research frontier model using CiteSpace.Design/methodology/approachUsing CiteSpace and data statistical tools, we conducted a bibliometric and visual analysis of nearly ten thousand research papers on carbon emissions and economic development published in the Web of Science (WOS) and China National Knowledge Infrastructure (CNKI) databases from 1991 to 2021.FindingsIt shows that research on economic development and carbon emissions is developing steadily and involves a wide range of fields. Notably, keywords such as “carbon emissions,” “economic growth,” and “energy consumption” had high frequency, centrality, and persistence. “carbon emissions,” “economic growth,” and “energy consumption” had high frequency, centrality, and persistence. Research institutions in the USA and China have made great contributions to research on economic development and carbon emissions. The authors should continue to enrich and improve research on related subjects and concerns to reasonably plan the path of carbon emission reduction and economic development.Originality/valueThe study analyzes the evolution of the relationship between carbon emissions and economic growth to provide scholars a more comprehensive and in-depth understanding of the relationship from an international perspective.

Can conventional energy be replaced by renewable energy without harming economic growth in non-oil-MENA? Evidence from Granger causality in VECM

2019 ◽  
Vol 15 (2) ◽  
pp. 159-168
Author(s):  
Badry Hechmy
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Granger Causality ◽  
Renewable Energy Consumption ◽  
Causality Test ◽  
Content Type ◽  
Investigation Methods ◽  
The Relationship

Purpose The purpose of this paper is to examine the relationship between renewable energy consumption and economic growth in non-oil countries in the Middle East and North Africa (non-oil-MENA) during the period from 2000 to 2014. The Pedroni (2000) test shows that there is a long-term cointegration relationship between those variables; however, the Granger causality test in the vector error correction model (VECM) shows that this relationship is bidirectional in the short and long term. Thus, to ensure sustainable economic growth without pollution and to reduce dependence on abroad, renewable energies can be chosen as substitutes for conventional energies in the non-oil-MENA countries. Design/methodology/approach First, LLC and IPS unit root tests are used to test the variables stationarity; and, second, Pedroni panel cointegration and Engle–Granger causality by VECM analysis are used to check the relationship between the studied variables. Findings Empirical results show that the renewable energy consumption and economic growth are cointegrated and that there are two-way causal relationships between them in the long and in the short term. These countries must therefore encourage the consumption of renewable energy instead of traditional energy to reduce their dependence on energy from abroad and CO2 pollution. Originality/value The originality of this work lies in the measurements of the study variables and the empirical investigation methods used.

scholarly journals Population growth, income growth and savings in Ghana

2020 ◽  
Vol 22 (2) ◽  
pp. 281-296
Author(s):  
John Gartchie Gatsi ◽  
Michael Owusu Appiah
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Population Growth ◽  
Positive Impact ◽  
Policy Formulation ◽  
Content Type ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Efficient Access ◽  
The Relationship

PurposeThe study explores the relationship among economic growth, population growth, gross savings and energy consumption over the period 1987– 2017.Design/methodology/approachThe autoregressive distributed lag (ARDL) bounds test approach by Pesaran et al. (2001) was employed to investigate variables for the study.FindingsIn the key findings, both gross savings and population growth negatively affect economic growth. However, energy consumption has positive impact on economic growth.Practical implicationsThese findings call for policy portfolios to address the impacts of gross savings and population growth on economic development. In particular, the financial sector needs to be revamped to be more efficient in channeling funds from the surplus units to the deficit units. It is recommended that investment be made in financial and technological innovation to provide efficient access to credits and other financial products even though individual savings may not move with economic growth.Originality/valueMany studies have explored the nexus between savings and economic growth without considering population growth and energy consumption. In this study, the relationship among savings, economic growth, population growth and energy consumption provide additional knowledge in policy formulation.

The relationship between renewable energy consumption and economic growth

2019 ◽  
Vol 13 (3) ◽  
pp. 573-589 ◽  
Author(s):  
Hamit Can ◽  
Özge Korkmaz
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Renewable Electricity ◽  
Renewable Energy Consumption ◽  
Content Type ◽  
The Balkans ◽  
Bound Test ◽  
The Relationship

Purpose The purpose of this study is to investigate the relationship between renewable energy and economic growth of Bulgaria. Design/methodology/approach This study analyzes the relationship between renewable energy and economic growth of Bulgaria for the period 1990-2016, based on annual data, by using the Toda–Yamamoto analysis and Autogressive Distrubuted Lag (ARDL) bound test. This period is characterized by the democratization of the Balkans and several crisis cycles in Bulgaria. Renewable energy consumption (REC, percentage of total final energy consumption), renewable electricity output (REO, percentage of total electricity output) and economic growth (GDP constant 2010 US$) were used. The levels or differences of the variables that are stationary were investigated using the augmented Dickey–Fuller (ADF), Philips–Perron (PP) and Kwiatkowski-Philips-Schmidt-Shin (KPSS) unit root tests. Findings Three different results were obtained from this study. One showed that renewable energy consumption and renewable electricity output are the causes of economic growth. Another result of this study is that economic growth and renewable electricity output are the causes of renewable energy consumption. The last result is that economic growth and renewable energy consumption are not causes of renewable electricity output. There was no long-term relationship between variables. Research limitations/implications The ARDL and Toda–Yamamoto tests were used because of lack of data sets. Thus, it is estimated that there is no long-term relationship. Originality/value This study is an original work for Bulgaria, showing the results of the relationship between renewable energy and economic growth. In line with the results of this study, renewable energy projects related to Bulgaria can be predicted.

Energy consumption, economic growth and CO2 emissions: evidence from G7 countries

2019 ◽  
Vol 16 (1) ◽  
pp. 22-39 ◽  
Author(s):  
Umer Jeelanie Banday ◽  
Ranjan Aneja
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Energy Prices ◽  
Energy Usage ◽  
Renewable Energy Consumption ◽  
G7 Countries ◽  
Content Type ◽  
New Thinking ◽  
Sustainable Economic Growth ◽  
The Relationship

Purpose The purpose of this paper is to find out the relationship between energy consumption, economic growth and CO2 emissions for the G7 countries over the period 1971–2014. The second intent of the paper is to make a comparison whether it is renewable energy consumption, non-renewable energy consumption, or both that determine sustainable economic growth in G7 countries. Design/methodology/approach The authors testify the relationship among energy consumption, economic growth and CO2 emissions using numerous econometric techniques. The authors have applied pooled mean group autoregressive distribution model (ARDL) for long-run and short-run relationships for individual countries. Finally, the authors have applied Granger causality testing based on Dumitrescu and Hurlin (2012) and Emirmahmutoglu and Kose’s (2011) approach in order to check the causal relationship between energy consumption and economic growth, CO2 emission and economic growth and vice versa. Findings However, energy usage is a greater concern due to the increase in imported energy prices. With this preposition, new thinking needs to be carried out for energy usage and sustainable economic growth. The authors consider cross-sectional reliance and cross-country heterogeneity for seven developed countries. The tests utilized in this investigation include the bootstrap causality approach of Dumitrescu and Hurlin (2012) and LA–VAR approach of Toda and Yamamoto (1995) that permits testing the causality for every individual panel individuals independently. However, not very many empirical works bring these two separate streams of writing together to analyze the causal connections between energy consumption, economic growth and CO2 emission for G7 countries. Originality/value However, energy usage is a greater concern due to the increase in imported energy prices. Meanwhile, the exhaustive use of fossil fuels increases emission level which leads to climate change, global warming, reduction in agriculture productivity and danger to human life. With this preposition, new thinking needs to be carried out for energy usage and sustainable economic growth. There are limited number of studies addressing energy consumption, economic growth and CO2 emission relationship. This study employs different methodology to find out the relationship among the variables.

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