Natural Gas Consumption and Economic Growth in Pakistan: Production Function Approach

2017 ◽  
Vol 19 (2) ◽  
pp. 297-310 ◽  
Author(s):  
Muhammad Shahid Hassan ◽  
Muhammad Naveed Tahir ◽  
Ayesha Wajid ◽  
Haider Mahmood ◽  
Abdul Farooq
Keyword(s):  
Economic Growth ◽  
Natural Gas ◽  
Granger Causality ◽  
Conservation Strategies ◽  
Annual Data ◽  
Long Run ◽  
Production Function Approach ◽  
Gas Consumption ◽  
Likelihood Approach ◽  
Natural Gas Consumption

This study investigates the relationship between energy consumption and economic growth in case of Pakistan using annual data from 1977 to 2013. Using Johansen maximum likelihood approach to estimate the long-run relationship and Granger causality to check the direction of causality, the study finds that the long-run relationship between natural gas consumption and economic growth is positive and statistically significant. Furthermore, the Granger causality shows that there exists energy-led growth hypothesis in Pakistan as Granger causality runs from energy to economic growth. The policy implication is that uninterrupted availability of energy is essential and conservation strategies could be harmful for the economic growth.

Empirical research on the relationship between natural gas consumption and economic growth in the Northeast Asia

2018 ◽  
Vol 29 (2) ◽  
pp. 216-231 ◽  
Author(s):  
Li Zhi-Guo ◽  
Han Cheng ◽  
Wei Dong-Ming
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Natural Gas ◽  
Granger Causality ◽  
Northeast Asia ◽  
Gas Consumption ◽  
Causality Relationship ◽  
Natural Gas Consumption ◽  
The Impact ◽  
The Relationship

The Northeast Asia, as one of the most rapidly development regions, has a large amount of energy consumption. Therefore, it is very significant to study the relationship between natural gas consumption and economic growth in the Northeast Asia. This paper builds Panel Data Model to study the relationship between natural gas consumption and economic growth in China, Japan, and Korea from 1991 to 2015, on the basis of analyzing the impact mechanism that natural gas has on economic growth. This paper finds that the Japan’s elasticity coefficient of natural gas consumption is the highest, whereas Korea’s is the lowest, and China’s is in the middle of these two countries, because of countries’ different development level and energy consumption mode. Moreover, the results of Granger causality relationship test show that there is only one-way Granger causality relationship between natural gas consumption and economic growth of China, but no causal relationship is found for Japan and Korea.

Natural gas consumption and economic growth nexus: an investigation for France

2019 ◽  
Vol 14 (2) ◽  
pp. 261-284
Author(s):  
Sahbi Farhani ◽  
Mohammad Mafizur Rahman
Keyword(s):  
Economic Growth ◽  
Natural Gas ◽  
Causal Relation ◽  
Causality Analysis ◽  
Bounds Testing ◽  
Content Type ◽  
Long Run ◽  
Gas Consumption ◽  
Natural Gas Consumption ◽  
The Relationship

Purpose The purpose of this study is to investigate the relationship between natural gas consumption and economic growth of France. Design/methodology/approach To analyze the relationship, an extended Cobb–Douglas production function is used. The auto-regressive distributive lag bounds testing approach is applied to test the existence of the long-run relationship between the series. The vector error correction model Granger causality approach is implemented to detect the direction of causal relation between the variables. Findings The results show that variables are cointegrated for the long-run relationship. They also indicate that natural gas consumption, exports, capital and labor are the contributing factors to economic growth in France. The causality analysis indicates that feedback hypothesis is validated between gas consumption and economic growth. The bidirectional causality is also found between exports and economic growth, gas consumption and exports and capital and gas consumption. Research limitations/implications The feedback hypothesis between gas consumption and economic growth implies that adoption of energy conservation policies should be discouraged; rather, gas consumption and economic growth policies should be jointly implemented. Originality/value This study is an original work for France and shows the results of the relationship between natural gas consumption and economic growth. In line with the results of this study, new direction for policy makers is opened up to formulate a comprehensive energy policy to sustain long-term economic growth in France.

STRUCTURAL BREAKS IN NATURAL GAS CONSUMPTION AND ECONOMIC GROWTH IN NIGERIA: EVIDENCE FROM NEW TIME SERIES TESTS THAT ALLOW FOR STRUCTURAL BREAKS

2019 ◽  
Vol 9 (1) ◽  
pp. 275-292
Author(s):  
Mukhtar Danladi Galadima ◽  
Abubakar Wambai Aminu
Keyword(s):  
Economic Growth ◽  
Natural Gas ◽  
Structural Breaks ◽  
Unit Root Test ◽  
Long Run ◽  
Lm Test ◽  
Gas Consumption ◽  
Trend Breaks ◽  
Natural Gas Consumption ◽  
The Relationship

This paper analyzed the issue of structural breaks in natural gas consumption and economic growth in Nigeria. The newly residual augmented least squares (RALS-LM) unit root test with breaks also known as “RALS-LM test with trend breaks and non-normal errors” proposed by Meng-Lee-Payne (2017) and the new structural breaks testing proposed by Kejriwal–Perron (2010) are among the tools used for the investi-gation. Our empirical findings provide significant evidence that the series of natural gas consumption and economic growth are stationary with one or two trend breaks. Furthermore, the investigation identified significant incidences of structural breaks in the relationship between natural gas consumption and economic growth in 1990, 2004, 2009 and all the break dates were found to be significant. The evaluation of the sub-sample periods based on the break dates revealed that the first and second breaks are potential while the last is destructive. Moreover, the estimate of the long-run elasticity is significant where a 1% increase in natural gas consumption induces the growth of Nigerian economy by 0.15% and all the dummies that represent the breakpoints are also significant where the 2004 break had a bigger effect among other breaks. The implication of the results is that shocks in the series of natural gas consumption and economic growth in Nigeria have transitory effect, modeling the relationship between natural gas consumption and economic growth in Nigeria without taking structural breaks into consideration could produce biased and unreliable statistical results, and there is economically significant dependence of the Nigerian economy on natural gas consumption.

scholarly journals An Analysis of The Asymmetric Effects of Natural Gas Consumption on Economic Growth in Pakistan: A Non-linear Autoregressive Distributed Lag Approach

2021 ◽  
Author(s):  
Hafiz M. Sohail ◽  
Zengfu Li ◽  
Muntasir Murshed ◽  
Alvarado Rafael ◽  
Haider Mahmood
Keyword(s):  
Economic Growth ◽  
Natural Gas ◽  
Financial Development ◽  
Energy Resource ◽  
The Other ◽  
Distributed Lag ◽  
Other Hand ◽  
Long Run ◽  
Gas Consumption ◽  
Natural Gas Consumption

Abstract Natural gas is an important energy resource that is used to produce the national output of Pakistan.On the other hand, since natural gas is a relatively cleaner energy resource compared to oil and coal, enhancing the level of natural gas use is believed to improve the environmental quality in Pakistan which, in turn, can be expected to enable the nation to sustain its economic performances. Hence, it is pertinent to assess the effects of natural gas consumption on the nation’s economic growth level.The main objective of this paper was to explore the asymmetric effects of natural gas consumption, controlling for financial development, on Pakistan's economic growth level over the 1965–2019 period. The results from the Augmented Dickey-Fuller, Phillips-Perron, and Zivot-Andrews unit root tests confirmed a mixed order of integration among the variables. Besides, the bounds test and Gregory-Hansen cointegration analysis revealed evidence of long-run associations between economic growth, natural gas consumption, and financial development. Moreover, the outcomes from the non-linear autoregressive distributed lag model showed thatin the short-run positive changes in the natural gas consumption levels increase economic growth in Pakistan. On the other hand, in the long-run, positive and negative changes in natural gas consumption levels increase and decrease the economic growth level, respectively, in the long-run. On the other hand, both positive and negative changes in the financial development level are found to reduce the economic growth level in the long-run. Furthermore, the Hacker-Hatemi-J causality analysis verifiedthat natural gas consumption influences the economic growth level in Pakistan; thus, the energy consumption-led growth phenomenon was unearthed. In line with these key findings, several policy level suggestions are put forward for Pakistan to boost its natural gas consumption figures in order to enhance its economic growth level in the future.

Scenario Prediction of China’s Natural Gas Consumption and Carbon Emissions in the Next Ten Years

2021 ◽  
Vol 16 (3) ◽  
pp. 569-587
Author(s):  
Chunzi Wang ◽  
◽  
Mingxiong Zhu ◽  
Keyword(s):  
Economic Growth ◽  
Natural Gas ◽  
Emission Reduction ◽  
Carbon Emission ◽  
Gas Production ◽  
High Rate ◽  
Carbon Emission Reduction ◽  
Gas Consumption ◽  
Natural Gas Consumption ◽  
Low Rate

Based on Johansen Cointegration Test, this paper sheds light on the long-run equilibrium relationship between natural gas consumption, gas production, and GDP in China. Three different natural gas demand scenarios of low, medium and high rates in the next ten years are considered, and a Neural Network Autoregression Model is used to predict the future carbon dioxide emission. We conclude: (1) In all three scenarios, the growth rates of natural gas consumption are all higher than those of natural gas production, while the gap between demand and domestic supply will gradually turn broader and China will largely rely on imports ; (2) In the scenario of low-rate economic growth, natural gas consumption will grow slowly, and it will be difficult to realize the carbon emission reduction targets by 2030 due to low-rate substitution of natural gas for coal; (3) If medium-rate to high-rate economic growth sustains, coupled with rapid increase in natural gas consumption and production, China’s Carbon Emission Reduction Targets for 2030 can be achieved with high-rate substitution of natural gas for coal.

Sign in / Sign up

Export Citation Format

Share Document