How Welfare Variables Influence Energy Consumption? - Evidence from Ecuador and Mexico

2013 ◽  
Vol 805-806 ◽  
pp. 1404-1412
Author(s):  
Daniel A. Sanchez-Loor ◽  
Chi Ya Chang
Keyword(s):  
Energy Consumption ◽  
Causal Relationship ◽  
Green Technology ◽  
Annual Data ◽  
Policy Makers ◽  
International Remittances ◽  
Long Run ◽  
Standards Of Living ◽  
Causality Tests ◽  
Technology Transformation

Energy consumption (EC) can be seen as a two-edged sword. It can be not only essential for sustaining good standards of living but also in hindering environmental protection. Consequently, what is the causal relationship between welfare variables and energy consumption in different economies has become one of the focal issues for both policy makers and researchers. The aim of this study attempts to investigate the causal relationship between economic growth (EG), foreign direct investment (FDI), remittances (RMTs), human development index (HDI), and EC using annual data from 1981 to 2011 through multivariate Granger causality tests for Ecuador and Mexico. The empirical analysis indicates that for Ecuador, in the long run, there are unidirectional causalities flowing from FDI, HDI, and RMTs to EC. For Mexico, there is no evidence of any welfare variable flowing to EC but there are unidirectional causalities running from EC to RMTs, HDI to FDI, and FDI to GDP all in the long run. With this information, we suggest policy makers of these two countries, especially for Ecuador, to strongly advocate energy-saving concepts to the public and actively implement more infrastructure projects related to health and education, provide incentives for international advanced green technology transformation, and liberalize international remittances.

Economic Growth, Energy Consumption and Tourism Development in Taiwan: A Granger Causality Approach

2012 ◽  
Vol 524-527 ◽  
pp. 3376-3379 ◽  
Author(s):  
Ming Liu ◽  
Sue Ling Lai ◽  
Kuo Cheng Kuo
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Causal Relationship ◽  
Tourism Development ◽  
Point Of View ◽  
Test Results ◽  
Policy Makers ◽  
Long Run ◽  
Equilibrium Relationship ◽  
Growth Energy

This study examines the causal relationship among economic growth, energy consumption and tourism development in Taiwan over the period from 1965 to 2010. Three Principle test results emerge from this study. First, test results indicate a long-run equilibrium relationship and a bi-direction of causality between energy consumption and tourism development with one proxy, number of visitors, being more significant than the other, visitor expenditures. Second, a bi-directional causality between energy consumption and economic growth is observed. Third, test results indicate no reciprocal causal relationship between tourism development and economic growth. From an energy conservation and sustainable tourism point of view, it is suggested policy makers and industry leaders develop high value, high profit tourism products that aim on attracting more visitor expenditures rather than numbers of visitor.

scholarly journals Energy consumption and real GDP: Panel co-integration and causality tests for sub-Saharan African countries

2017 ◽  
Vol 23 (1) ◽  
pp. 8-14 ◽  
Author(s):  
Babajide Fowowe
Keyword(s):  
Energy Consumption ◽  
Causal Relationship ◽  
African Countries ◽  
Real Gdp ◽  
Long Run ◽  
Equilibrium Relationship ◽  
Causality Tests ◽  
Sub Saharan ◽  
Long Run Equilibrium

This paper investigates the causal relationship between energy consumption and real GDP in 14 Sub-Saharan African countries over the period 1971–2004. The results of panel co-integration tests showed that energy consumption and real GDP do not have a stable long-run equilibrium relationship. We find that for all members of the panel, there is homogenous causality from energy consumption to real GDP and vice versa. This bi-directional causality supports the feedback hypothesis.

scholarly journals FDI and Economic Growth in EU13 Countries: Cointegration and Causality Tests

2020 ◽  
Vol 12 (3) ◽  
pp. 47-63
Author(s):  
Vlatka Bilas ◽  
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
European Union ◽  
Annual Data ◽  
Foreign Direct Investments ◽  
Causality Test ◽  
Panel Ardl ◽  
Long Run ◽  
Causality Tests ◽  
The Relationship

Foreign direct investments are seen as a prerequisite for gaining and maintaining competitiveness. The research objective of this study is to examine the relationship between foreign direct investment (FDI) and economic growth in “new” European Union member countries using various unit root, cointegration, as well as causality tests. The paper employs annual data for FDI and gross domestic product (GDP) from 2002 to 2018 for the 13 most recent members of European Union (EU13): Bulgaria, Croatia, Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Romania, Slovakia and Slovenia. An estimated panel ARDL (PMG) model found evidence that there is a long-run equilibrium between the LogGDP, LogFDI and LogFDIP series, with the rate of adjustment back to equilibrium between 3.27% and 20.67%. In the case of the LogFDI series, long-run coefficients are highly statistically significant in all four models, varying between 0.0828 and 0.3019. These coefficients indicate that a 1% increase in LogFDI increases LogGDP between 0.0828% and 0.3019%. Results of a Dumitrescu-Hurlin panel causality test indicated that a relationship between the GDP growth rate and FDI growth rate is only indirect. Finally, only weak evidence was shown that FDI had a statistically significant impact on GDP in the EU13 countries over the period 2002-2018. This report of findings contributes to the literature concerning FDI and economic growth, namely regarding the current understanding of the relationship between these two factors.

scholarly journals Early Marriage as a Determinant of Poverty in Nigeria

2021 ◽  
Vol 65 (1) ◽  
pp. 102-119
Author(s):  
Adenuga Adekoya ◽  
◽  
Gbenro Sokunbi ◽  
Keyword(s):  
Higher Education ◽  
Social Welfare ◽  
Granger Causality ◽  
Low Income ◽  
Early Marriage ◽  
Easy Access ◽  
Annual Data ◽  
Policy Makers ◽  
Access To Credit ◽  
Long Run

A greater percentage of women in developing countries married before their 18th birthday. Early marriage serves as a threat to a child's future development. This is because it is difficult to have access to quality education and higher education, and it limits the ability to secure a good job. Also, girls involved in early marriage face acute poverty conditions. This research examined the link between early marriage and poverty in Nigeria. Annual data is sourced from 1970 to 2017. Granger causality is used to determine the nature of causality. Autoregressive Distributed Lagged Model is further used to estimate the data. The result showed that a bi-directional Granger causality exists between early marriage and poverty as well as for low-income and early marriage. In the long-run estimation, early marriage, secondary education and low-income increase poverty. Also, social welfare and access to credit facilities reduce poverty. The policy makers are therefore encouraged to improve social welfare for girls in early marriage and provide easy access to credit facilities for them to pursue higher education or entrepreneurship skills, in a bid to gradually move them out of poverty.

scholarly journals INTERACTION BETWEEN ENERGY CONSUMPTION AND ECONOMIC GROWTH IN INDIA

2017 ◽  
Vol 5 (4) ◽  
pp. 62-71 ◽  
Author(s):  
Nandakumar ◽  
Devasia ◽  
Thomachan
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
World Bank ◽  
Energy Use ◽  
Annual Data ◽  
Sample Period ◽  
Development Indicators ◽  
Long Run ◽  
World Development

This Paper examines the relation between energy use and GDP percapita of India. It used the annual data from 1971-2013, obtained from World Development Indicators of World Bank for India. The variables used in this study are – Percapita GDP and Energy consumption in Kilograms of oil equivalent (Kgoe). The result shows long run relation between energy use and GDP percapita. The result also shows that Energy Use granger causes GDP percapita of India for the sample period.

scholarly journals Public Debt and Economic Growth in Niger: An Autoregressive Distributed Lag Approach

2020 ◽  
Vol 1 (2) ◽  
pp. 56-65
Author(s):  
Issoufou Oumarou
Keyword(s):  
Economic Growth ◽  
Public Debt ◽  
Unit Root Test ◽  
Annual Data ◽  
African Countries ◽  
Policy Makers ◽  
Significance Level ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run

Purpose: The aim of the paper is to examine the existence or not of a long run or a short run relationship between public debt and economic in Niger and investigate the significance of this relationship. Approach/Methodology/Design: The study first applied time series econometrics tests such as Augmented Dickey-Fuller (ADF) unit root test, Bound cointegration test and Auto Regressive Distributed Lag (ARDL) on annual data obtained from the International monetary fund (IMF) and the West African States Central Bank (BCEAO). The observations cover the period from 1970 to 2019. The study then performed some residual tests including serial correlation, normality and heteroskedasticity for the accuracy of the prediction of the model. Findings: The empirical results showed no long run relationship between public debt and economic growth in Niger. The short run analysis revealed that public debt and budget balance have short run causal effects on economic growth in Niger. The coefficients are significant at 10% significance level. Practical Implications: This article gives valuable information to Niger policy makers regarding the effects of public debt on Niger economic growth. The article highlights the effects that public debt has on economic growth in Niger in the short and long run. Therefore helping policy makers decide whether to increase or reduce the borrowing trend. Originality/value: The results of the paper give valuable information on the relationship that public debt may have with economic growth in Sub Saharan African countries with the similar macroeconomic indicators with Niger.

Do agriculture-based economies mitigate CO2 emissions?

2019 ◽  
Vol 14 (3) ◽  
pp. 638-652 ◽  
Author(s):  
Javaid Ahmad Dar ◽  
Mohammad Asif
Keyword(s):  
Renewable Energy ◽  
Energy Consumption ◽  
South Asian ◽  
Carbon Emissions ◽  
Real Income ◽  
Renewable Energy Consumption ◽  
Content Type ◽  
Long Run ◽  
Causality Tests ◽  
Granger Causality Tests

Purpose This study aims to fill the gap in income-environment literature by adding agricultural contribution to the nexus. The authors investigate the short-run and long-run impact of agricultural contribution, renewable energy consumption, real income, trade liberalisation and urbanisation on carbon emissions for a balanced panel of five South Asian Association for Regional Cooperation (SAARC) countries spanning the period 1990-2013. Design/methodology/approach Pedroni and Kao cointegration techniques have been used to test the existence of long-run relationship between the variables. The directions of causal relationships have been verified using Granger causality tests. Further, the long-run parameters of the baseline equation have been estimated by using the fully modified ordinary least squares, the technique developed by Pedroni, (2001a) for heterogeneous cointegrated panels. Findings The result reveals that agricultural contribution and renewable energy consumption improve environmental quality in the long run, while urbanisation and per capita real income degrade it. The study did not find any evidence of “pollution heaven hypothesis” in the selected countries. The Granger causality tests confirm bidirectional causality between carbon emissions and income and between carbon emissions and urbanisation. In addition, there is unidirectional causality running from agricultural contribution to renewable energy consumption. Originality/value This is the only study to investigate the role of agriculture sector in carbon mitigation from a panel of South Asian economies. To the best of the authors’ knowledge, it is also the first study to test the applicability of “pollution heaven hypothesis” for SAARC countries.

GDP, energy consumption and financial development in Italy

2018 ◽  
Vol 12 (1) ◽  
pp. 28-43 ◽  
Author(s):  
Cosimo Magazzino
Keyword(s):  
Energy Consumption ◽  
Granger Causality ◽  
Financial Development ◽  
Oil Prices ◽  
Content Type ◽  
Real Gdp ◽  
Long Run ◽  
Causality Tests ◽  
Granger Causality Tests ◽  
Toda And Yamamoto

Purpose This study aims to explore the relationship among energy consumption, real income, financial development and oil prices in Italy over the period 1960-2014. Design/methodology/approach Different econometric techniques – such as the General Methods of Moment (GMM) or the AutoRegressive Distributed Lags (ARDL) bounds test – are usually used in the empirical analysis. Moreover, both the Toda and Yamamoto causality tests and the Granger causality tests are applied to the data. Findings The results of unit root and stationarity tests show that the variables are non-stationary at levels, but stationary in first-differences form, or I(1). The ARDL bounds F-test reveals an evidence of a long-run relationship among the four variables at 1% significance level. Moreover, an increase in real GDP and oil prices has a significant effect on energy consumption in the long run. The coefficients of estimated error correction term are also negative and statistically significant. In addition, the paper explores the causal relationship between the variables by using a VAR framework, with Toda and Yamamoto but also Granger causality tests, within both multivariate and bivariate systems. The findings indicate that energy consumption is affected by real GDP. Originality/value The study also filled the literature gap of applying ARDL technique to examine this relevant issue for Italy.

Sign in / Sign up

Export Citation Format

Share Document