Sectoral Energy Consumption and Economic Growth: Analysis Using Nonparametric Quantile Causality Test

2019 ◽  
Vol 21 (5) ◽  
pp. 2431-2442
Author(s):  
Yun-Jung Lee ◽  
Yeonjeong Lee ◽  
Seong-Min Yoon
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Growth Analysis ◽  
Causality Test ◽  
Quantile Causality

Renewable and non-renewable energy consumption and economic growth in the US: A Markov-Switching VAR analysis

2020 ◽  
pp. 0958305X2094403
Author(s):  
Emrah Ismail Cevik ◽  
Durmuş Çağrı Yıldırım ◽  
Sel Dibooglu
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Energy Demand ◽  
Fossil Fuels ◽  
The United States ◽  
Renewable Energy Consumption ◽  
Causality Test ◽  
Long Run ◽  
The Us

We examine the relationship between renewable and non-renewable energy consumption and economic growth in the United States. While the regime-dependent Granger causality test results for the non-renewable energy consumption and economic growth suggest bi-directional causality in both regimes, we cannot validate any causality between renewable energy consumption and economic growth. The US meets its energy demand from non-renewable sources; as such, renewable energy consumption does not seem to affect economic growth. Given the efficiency and productivity of renewable energy investments, we conclude that it is worthwhile to consider renewable energy inputs to replace fossil fuels given potential benefits in terms of global warming and climate change concerns. In this regard, increasing the R&D investments in the renewable energy sectors, increases in productivity and profitability of renewable energy investments are likely to accrue benefits in the long run.

scholarly journals Leveraged Bootstrap Test of Volatility: A Novel Approach to the Energy Consumption and Economic Growth Puzzle

2017 ◽  
Vol 9 (9) ◽  
pp. 117 ◽  
Author(s):  
Kuo-Hao Lee ◽  
Jonathan Ohn ◽  
Evren Eryilmaz
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Stock Returns ◽  
Causal Relationship ◽  
Stock Prices ◽  
Granger Causality Test ◽  
Energy Industry ◽  
Causality Test ◽  
Bootstrap Test ◽  
Novel Approach

The main purpose of this research is to examine the causal relationship between the Energy industry and nine other industries by use of volatility instead of returns. Existing literatures find a causal relationship by use of stock returns, however, we find that using volatility reveals a causal relationship that might not otherwise be revealed through returns alone. Since the existing literature shows that volatility of stock prices is informative, we apply a Granger causality test by use of a leveraged bootstrap test developed by Hacker and Hatemi (2006) to investigate the causal behavior of the volatility. Our results show that volatility of the Energy industry causes volatility in two other industries- Industrials and Health Care. Also, the Energy industry market is affected by the Materials, Consumer Staples and Utilities industries. This finding is substantially different from the findings of previous research, and provides a novel approach to analyzing and solving the energy consumption and economic growth puzzle.

The Empirical Research of the Relationship between Economic Growth and Energy Consumption in Hebei Province

2014 ◽  
Vol 962-965 ◽  
pp. 2191-2194
Author(s):  
Xiao Gang Li ◽  
Han Meng Zhang
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Hebei Province ◽  
Total Energy Consumption ◽  
Causality Test ◽  
Correction Model ◽  
Model Studies ◽  
Energy Dependent ◽  
The Relationship ◽  
Integration Analysis

According to the statistics from 1980 to 2010 in Hebei province's GDP growth, as well as the total energy consumption EC statistics., the author conducted an empirical study on the relationship between economic growth and energy consumption in Hebei, using co-integration analysis, Granger causality test and error correction model. Studies have shown that it exists cointegration between economic growth and energy consumption in Hebei Province, and there was unidirectional causality from energy consumption to economic growth. that is, economic growth in Hebei Province is energy-dependent. Based on the research results, this paper gives some suggestions for economic development in Hebei Province.

FINANCIAL INTEGRATION, ENERGY CONSUMPTION AND ECONOMIC GROWTH IN VIETNAM

2020 ◽  
Vol 15 (03) ◽  
pp. 2050010
Author(s):  
NGUYEN MINH HA ◽  
BUI HOANG NGOC ◽  
MICHAEL MCALEER
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Financial Integration ◽  
Positive Impact ◽  
Vector Autoregressions ◽  
Bounds Testing ◽  
Causality Test ◽  
Empirical Results ◽  
Long Run ◽  
The Impact

The paper investigates the impact of financial integration and energy consumption on economic growth in Vietnam during the period 1986–2017. By applying the Autoregressive Distributed Lag ARDL) approach proposed by Pesaran et al. [Pesaran, MH, Y Shin and RJ Smith (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16(3), 289–326.] and the bounds cointegration test, the empirical results show the existence of long-term cointegration among all the variables, and that an increase in financial integration leads to an increase in economic growth in the long run. There is a positive impact of energy consumption on growth in both the short run and long run. The causality test of Toda and Yamamoto [Toda, HY and T Yamamoto (1995). Statistical inference in vector autoregressions with possibly integrated processes. Journal of Econometrics, 66(1–2), 225–250.] confirm that there is bi-directional causality between the pairs, financial integration and economic growth, and energy consumption and growth, which support the feedback hypothesis. However, there is only uni-directional causality from energy consumption to financial integration. The empirical results should be of major empirical importance for public policy decision-makers to plan sustainable development goals for Vietnam.

Economic growth, renewable and nonrenewable energy consumption nexus in India

2020 ◽  
Vol 14 (4) ◽  
pp. 777-792 ◽  
Author(s):  
Shruti Shastri ◽  
Geetilaxmi Mohapatra ◽  
A.K. Giri
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Renewable Energy Consumption ◽  
Causality Test ◽  
Content Type ◽  
Long Run ◽  
The Impact ◽  
Asymmetric Causality ◽  
Nonrenewable Energy

Purpose The purpose of this paper is to examine the nexus among economic growth, nonrenewable energy consumption and renewable energy consumption in India over the period 1971-2017. Design/methodology/approach This study uses nonlinear autoregressive distributed lags model and asymmetric causality test to explore nonlinearities in the dynamic interaction among the variables. Findings The findings indicate that the impact of nonrenewable energy consumption and renewable energy consumption on the economic growth is asymmetric in both long run and short run. In long run, a positive shock in nonrenewable energy consumption and renewable energy consumption exerts a positive impact on growth. However, the negative shocks in nonrenewable energy consumption produce larger negative effects on the growth. The results of nonlinear causality test indicate a unidirectional causality from nonrenewable energy consumption and renewable energy consumption to economic growth and thus support “growth hypothesis” in context of India. Practical implications The findings imply that policy measures to discourage nonrenewable energy consumption may produce deflationary effects on economic growth in India. Further, the findings demonstrate the potential role of renewable energy consumption in promoting economic growth. Originality/value To the best of the authors’ knowledge, this study is the first attempt to explore nonlinearities in the relationship between economic growth and the components of energy consumption in terms of renewable and nonrenewable energy consumption.

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