scholarly journals Energy Sources and Gross Domestic Product: International Evidence

2014 ◽  
Vol 53 (4II) ◽  
pp. 477-490 ◽  
Author(s):  
Waseem Ahmad ◽  
Tanvir Ahmed
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Energy Conservation ◽  
Energy Use ◽  
Output Growth ◽  
Point Of View ◽  
Energy Sources ◽  
Conservation Policies ◽  
The Impact ◽  
The Relationship

The relationship between energy consumption and economic growth received a significant amount of attention in energy economics literature [Al-Iraiani (2006)]. Rufael (2006) stated that different energy sources are a necessary requirement for economic and social development and no country in the world has progressed from subsistence economy without the use of energy. In this regard, four views have emerged over time about the relationship between energy consumption and output growth. One point of view is that energy is the prime source of value and other factors like labor and capital cannot do without energy. Many studies argue that the impact of energy use on growth depends on the structure of the economy and the stage of economic growth of the country concerned [Ghali and Sakka (2004)]. The bulk of the literature reports a uni-directional causality from energy consumption to economic growth. When the causality runs from energy consumption to economic growth, it is also called ‘growth hypothesis’. Table 1 provides a list of the studies, which show such results. It implies that an increase in energy consumption has a significant impact on economic growth and if it is positive, then energy conservation policies have a detrimental impact on economic growth. Alternatively, if an increase in energy consumption has significant negative impact on GDP, it implies that growing economy needs a less amount of energy consumption, may be due to shift towards less energy intensive sectors [Payne (2010)]. Second point of view is that economic growth has a positive influence on energy consumption. There may be uni–directional causality from economic growth to energy consumption. Table 1 displays a list of studies showing such results. When the causality runs from economic growth to energy consumption, it is often referred to as ‘conservation hypothesis’. It implies that energy conservation policies formulated to reduce energy consumption may not adversely affect economic growth. Third point of view is that the cost of energy use is very small compared to GDP and consequently its impact on economic growth is nonsignificant. There may be no causality between energy consumption and GDP; it is often referred to as ‘neutrality hypothesis”.

scholarly journals Intensity Of Energy Use In The U.S.A.: 1949 - 2003

2011 ◽  
Vol 5 (11) ◽  
Author(s):  
Christopher M. Chima
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Energy Use ◽  
Energy Intensity ◽  
Kuznets Curve ◽  
Energy Prices ◽  
Font Size ◽  
Conservation Policies ◽  
The World ◽  
The Relationship

<p class="MsoNormal" style="text-align: justify; margin: 0in 0.5in 0pt;"><span style="font-size: 10pt;"><span style="font-family: Times New Roman;">The particular role that energy plays in the economy of a country, and the relationship between energy consumption and economic growth are of interest to researchers, analysts, and policymakers. Energy consumption can be seen as either a cause of, or a symptom of economic growth. Therefore, understanding the nature of the interactions between energy consumption and gross domestic product (GDP) can help guide energy policies. This paper examines the energy-GDP relationship in the U.S.A. One common method used in analyzing the energy-GDP relationship is energy intensity (also called the intensity of energy use (IEU)), which is the amount of energy required to produce a unit of income (GDP). The paper begins with a substantial literature review of energy intensity studies from around the world. A summary of the findings is discussed, including the factors that were found to directly influence the intensity of energy use. The Kuznets environmental curve is then presented and used in developing a model for the IEU. The model is then tested with data for the U.S.A. from 1949 &ndash; to 2003. The results show that energy consumption is very sensitive to energy prices, which in turn impacts the GDP, and that the IEU has declined in the U.S.A. for the period tested, fitting the downward slopping segment of the Kuznets curve.<span style="mso-spacerun: yes;">&nbsp; </span>These results imply that energy conservation policies are desirable. </span></span></p>

scholarly journals Empirical Study Of The Relationship Between Energy Consumption And Gross Domestic Product In The U.S.A.

2011 ◽  
Vol 4 (12) ◽  
Author(s):  
Christopher M. Chima ◽  
Rodney Freed
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Energy Use ◽  
The United States ◽  
Multiple Model ◽  
General Belief ◽  
Conservation Policies ◽  
Time Period ◽  
Stated Time ◽  
The Relationship

The role of energy in the economy is an important issue. There is a general belief and agreement amongst economists, researchers, analysts, and policymakers, that energy consumption is related to economic activity and plays a key role in the process of economic development. However, the precise nature of this relationship between energy consumption and economic growth remains debatable. While some ambiguity has remained regarding the direction of causation--- whether from energy to economy or from economy to energy --- the importance of the energy GDP interaction is well recognized. Energy use is a necessary input to economic growth and is also a function of growth. This paper begins with a literature review of the work that has been done to date on the energy-GDP relationship in several countries. Then, an analysis of the historical data for the U.S.A. from 1949 2003 is presented along with mathematical models. The contributions from this paper are that first, we clarify that energy conservation policies will not harm the U.S. economy. Second, we employed a macroeconomic model based on Multiple Model Estimation to determine the relationship between energy consumption and GDP in the United States for the stated time period. Our model suggests that the causation goes both ways: from energy to the components of GDP, and from GDP to energy consumption.

Effect of Tourism Development on Energy Consumption, CO2 and Economic Growth in China

2012 ◽  
Vol 524-527 ◽  
pp. 3380-3383 ◽  
Author(s):  
Kuo Cheng Kuo ◽  
Ming Liu ◽  
Sue Ling Lai
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Energy Conservation ◽  
Arima Model ◽  
Tourism Development ◽  
Point Of View ◽  
The Other ◽  
Test Results ◽  
Growth Point ◽  
The Relationship

This study examines the effect of tourism development on energy consumption, CO2 and economic growth in China over the period from 1981 to 2010. An extension of ARIMA model was performed to investigate the relationship between variables. Two principle test results emerge from this study. First, increases on visitors may largely give rise to GDP. On the other hand, increase on tourism receipts may result in greater energy consumption and CO2 emission to some extent as compared to number of visitors. However, the amount of effects from either tourism receipts or number of visitors to energy consumption and CO2 emission are limited. From an energy conservation and economic growth point of view, the results support the hypothesis of tourism-led economic growth in the China economy with relatively limited increase of energy consumption and CO2 emission.

scholarly journals Empirical Research on the Relationship amongst Renewable Energy Consumption, Economic Growth and Foreign Direct Investment in Kazakhstan and Uzbekistan

Energies ◽  
2021 ◽  
Vol 14 (2) ◽  
pp. 332
Author(s):  
Janusz Grabara ◽  
Arsen Tleppayev ◽  
Malika Dabylova ◽  
Leonardus W. W. Mihardjo ◽  
Zdzisława Dacko-Pikiewicz
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Direct Investment ◽  
Renewable Energy Sources ◽  
Energy Sources ◽  
Renewable Energy Consumption ◽  
Integration Test ◽  
The Relationship

In this contemporary era, environmental problems spread at different levels in all countries of the world. Economic growth does not just depend on prioritizing the environment or improving the environmental situation. If the foreign direct investment is directed to the polluting industries, they will increase pollution and damage the environment. The purpose of the study is to consider the relationship between foreign direct investment in Kazakhstan and Uzbekistan and economic growth and renewable energy consumption. The study is based on data obtained from 1992 to 2018. The results show that there is a two-way link between foreign direct investment and renewable energy consumption in the considered two countries. The Granger causality test approach is applied to explore the causal relationship between the variables. The Johansen co-integration test approach is also employed to test for a relationship. The empirical results verify the existence of co-integration between the series. The main factors influencing renewable energy are economic growth and electricity consumption. To reduce dependence on fuel-based energy sources, Kazakhstan and Uzbekistan need to attract energy to renewable energy sources and implement energy efficiency based on rapid progress. This is because renewable energy sources play the role of an engine that stimulates the production process in the economy for all countries.

scholarly journals The Relationship between Economic Growth and Pollution in Some New European Union Member States: A Dynamic Panel ARDL Approach

Energies ◽  
2021 ◽  
Vol 14 (9) ◽  
pp. 2363
Author(s):  
Mihaela Simionescu ◽  
Carmen Beatrice Păuna ◽  
Mihaela-Daniela Vornicescu Niculescu
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Ghg Emissions ◽  
Kuznets Curve ◽  
Renewable Energy Consumption ◽  
Panel Ardl ◽  
Domestic Credit ◽  
The Impact ◽  
The Relationship

Considering the necessity of achieving economic development by keeping the quality of the environment, the aim of this paper is to study the impact of economic growth on GHG emissions in a sample of Central and Eastern European (CEE) countries (V4 countries, Bulgaria and Romania) in the period of 1996–2019. In the context of dynamic ARDL panel and environmental Kuznets curve (EKC), the relationship between GHG and GDP is N-shaped. A U-shaped relationship was obtained in the renewable Kuznets curve (RKC). Energy consumption, domestic credit to the private sector, and labor productivity contribute to pollution, while renewable energy consumption reduces the GHG emissions. However, more efforts are required for promoting renewable energy in the analyzed countries.

scholarly journals Economic Growth And Carbon Emissions In South Africa: An Empirical Investigation

2011 ◽  
Vol 10 (7) ◽  
pp. 75 ◽  
Author(s):  
Nicholas M. Odhiambo
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Energy Consumption ◽  
Co2 Emissions ◽  
Carbon Emissions ◽  
Empirical Investigation ◽  
Output Growth ◽  
Bounds Testing ◽  
Conservation Policies ◽  
Long Run

In this paper we examine the causal relationship between CO2 emissions and economic growth in South Africa - using the newly developed ARDL-Bounds testing approach. We incorporate energy consumption in a bivariate causality setting between CO2 emissions and economic growth, thereby creating a simple trivariate model. Our empirical results show that there is a distinct unidirectional causal flow from economic growth to carbon emissions in South Africa. We also find that energy consumption Granger-causes both carbon emissions and economic growth. We recommend that energy conservation policies, as well as appropriate forms of renewable energy, should be explored in South Africa in order to enable the country to reduce its carbon emission footprint without necessarily sacrificing its output growth. The results apply irrespective of whether the causality is estimated in the short or in the long run.

scholarly journals Does Uncertainty Matter for Trade - Economic Growth Nexus in Indonesia?

2021 ◽  
Vol 67 (1) ◽  
pp. 147
Author(s):  
Panky Tri Febiyansah ◽  
Bintang Dwitya Cahyono ◽  
Rio Novandra
Keyword(s):  
Economic Growth ◽  
Causal Relationship ◽  
Output Growth ◽  
Correction Model ◽  
Vector Error Correction ◽  
Vector Error ◽  
Long Run ◽  
The Impact ◽  
The Relationship

This paper aims to test the impact of uncertainty on the causal relationship among exports, imports, and economic growth in Indonesia. The relationship is constructed by examining the presence of FDI-adjusted exports and imports (trade) and the output link using conditional variances-covariances derived from the generalized autoregressive conditional heteroskedastic (GARCH) process in a vector error correction model (VEC-GARCH model). Using evidence in Indonesia, the model exposes the uni-directional nexus from trade performance to trade-adjusted output growth in the absence of uncertainty. The volatility effects are evident in the causal relationship between trade and output. The finding shows that the uncertainty effects hamper the trade-economic growth nexus. Incorporated with the long-run causality, trade still causes output even after containing the contributions of volatility. The significant role of imports highlights the higher demand for intermediate capital products and the inclusion of technology in strengthening economic growth.

scholarly journals Analysis of the Impact of Different Variables on the Energy Demand in Office Buildings

2020 ◽  
Vol 12 (13) ◽  
pp. 5347
Author(s):  
José Luis Fuentes-Bargues ◽  
José-Luis Vivancos ◽  
Pablo Ferrer-Gisbert ◽  
Miguel Ángel Gimeno-Guillem
Keyword(s):  
Energy Consumption ◽  
Energy Demand ◽  
Energy Use ◽  
Computer Software ◽  
Energy Performance ◽  
Point Of View ◽  
Regulatory Systems ◽  
Energy Behaviour ◽  
Balance Energy ◽  
The Impact

The design of near zero energy offices is a priority, which involves looking to achieve designs which minimise energy consumption and balance energy requirements with an increase in the installation and consumption of renewable energy. In light of this, some authors have used computer software to achieve simulations of the energy behaviour of buildings. Other studies based on regulatory systems which classify and label energy use also generally make their assessments through the use of software. In Spain, there is an authorised procedure for certifying the energy performance of buildings, and software (LIDER-CALENER unified tool) which is used to demonstrate compliance of the performance of buildings both from the point of view of energy demand and energy consumption. The aim of this study is to analyse the energy behaviour of an office building and the variability of the same using the software in terms of the following variables: climate zone, building orientation and certain surrounding wall types and encasements typical of this type of construction.

Energy use, poverty and development in the SADC

2007 ◽  
Vol 18 (3) ◽  
pp. 10-17 ◽  
Author(s):  
J.C. Nkomo
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Poverty Alleviation ◽  
Energy Use ◽  
Significant Proportion ◽  
Reducing Power ◽  
Energy Sources ◽  
The Poor ◽  
Growth Energy ◽  
Essential Prerequisite

The purpose of this paper is to investigate the rela-tionship between economic growth, energy use, poverty alleviation and development in the Sou-thern African Development Community (SADC) countries. Association is drawn between human development indices and energy consumption, eco-nomic growth and poverty. It turns out that poverty has a bearing on the types of energy consumed, which in turn, affects health, education and income earning opportunities. Access to reliable and afford-able energy remains an essential prerequisite for combating poverty, and available evidence shows that a significant proportion of the population in SADC countries lack access even to the most basic energy supplies and services. Furthermore, inequal-ities penalize the poor by leaving them with a small-er share of income thus limiting their energy sources and weakening the poverty-reducing power of growth.

scholarly journals Energy Consumption and Economic Growth: Further Evidence from Taiwan

2017 ◽  
Vol 9 (7) ◽  
pp. 165
Author(s):  
Chung-Wei Kao ◽  
Jer-Yuh Wan
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Energy Conservation ◽  
Energy Use ◽  
Threshold Model ◽  
Policy Implications ◽  
Economic Activities ◽  
Causality Test ◽  
Long Run ◽  
The Business Cycle

This paper investigates the nonlinear relationship between energy consumption and GDP in Taiwan. By applying the method of Gonzalo and Pitarakis (2006), we consider the possibility of significant threshold effects within the long-run relationship between the two variables, where the effect is trigged by changes in the phase of the business cycle. The Granger-causality test in a threshold model indicates the relationship between energy consumption and GDP is regime-dependent. A bidirectional relationship between these two variables is observed in the contractionary regime, implying that energy serves as an engine of economic growth and that reductions in energy use will have adverse effects on economic activities. On the other hand, a unidirectional causality running from GDP to energy consumption is detected in the expansionary regime. It indicates energy conservation is feasible in this regime with little or no detrimental effects on economic growth. The policy implications are that energy use and economic growth are jointly reinforcing each other during recessionary periods. However, in periods of high economic growth when energy consumption cannot bring about economic growth, energy conservation policies should be adopted with more aggressive thinking.

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