scholarly journals The Relationship between Energy Consumption and Economic Growth in the USA: A Non-Linear ARDL Bounds Test Approach

2017 ◽  
Vol 09 (03) ◽  
pp. 170-186 ◽  
Author(s):  
Arzu Tay Bayramoglu ◽  
Ertugrul Yildirim
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Ardl Bounds Test ◽  
Non Linear ◽  
The Usa ◽  
Bounds Test ◽  
The Relationship

scholarly journals Energy–Finance–Growth Nexus in ASEAN-5 Countries: An ARDL Bounds Test Approach

2019 ◽  
Vol 12 (1) ◽  
pp. 5 ◽  
Author(s):  
Masnun Mahi ◽  
Seuk Wai Phoong ◽  
Izlin Ismail ◽  
Che Ruhana Isa
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Financial Crisis ◽  
Structural Break ◽  
The Philippines ◽  
Ardl Bounds Test ◽  
Long Run ◽  
Bounds Test ◽  
Sustainable Economic Growth ◽  
Finance Growth Nexus

This study examines the relationship between energy consumption, financial development and economic growth for ASEAN-5 countries, namely Malaysia, Indonesia, the Philippines, Singapore and Thailand, over the period from 1980 to 2017. Finance–growth and energy–growth relationships have been well researched; however, the energy–finance–growth nexus is an equally important but less explored area. Our Auto Regressive Distributed Lags (ARDL) bounds test for cointegration results suggests that the variables tend to move together in the long run for all countries, apart from Indonesia. Our study also considers the effect of a structural break due to financial crisis and confirms that the break does not affect the long-term relationship among the variables; in other words, the financial crisis does not affect the energy–finance–growth nexus. Hence, considering the consistency of energy consumption, the importance of the energy sector must not be undermined, and appropriate energy policies are instrumental in maintaining a well-managed financial sector for sustainable economic growth.

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.

Linking energy consumption with economic growth: Rwanda as a case study

2021 ◽  
pp. 181-200
Author(s):  
Gerard Bikorimana ◽  
Charles Rutikanga ◽  
Didier Mwizerwa
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Granger Causality ◽  
Granger Causality Test ◽  
Causality Test ◽  
Ardl Bounds Test ◽  
Causal Direction ◽  
Bounds Test ◽  
Toda And Yamamoto

This paper analyzes the link between energy consumption and economic growth in Rwanda for the period 1985-2017. The ARDL bounds test was used to test for the existence of co-integration, while the Toda and Yamamoto granger causality test was applied to test for causal direction. The results from the estimation of the ARDL bounds test showed that there was no evidence of co-integration between the considered variables under study. Additionally, the empirical findings confirmed that there was no relationship between economic growth and energy consumption in Rwanda. The findings supported the "neutrality hypothesis" between energy consumption and economic growth. This implies that neither conservative nor expansive policies in relation to energy consumption have any effect on economic growth. Furthermore, the study found a uni-directional granger causality running from energy consumption to economic growth. The results of this findings are consistent with the "growth hypothesis" which postulates that energy consumption leads to economic growth

scholarly journals Oil Consumption and Economic Growth in Turkey: An ARDL Bounds Test Approach in the Presence of Structural Breaks

2019 ◽  
pp. 77-85
Author(s):  
Özgür Özaydın ◽  
H. Alper Güzel
Keyword(s):  
Economic Growth ◽  
Unit Root ◽  
Structural Breaks ◽  
Unit Root Tests ◽  
Annual Data ◽  
Oil Consumption ◽  
Ardl Bounds Test ◽  
Bounds Test ◽  
The Relationship ◽  
Toda And Yamamoto

The aim of this study is to investigate the relationship between oil consumption and income in Turkey, using annual data from 1961 to 2016. The stationarity properties of the series are analyzed with Lee and Strazicizh (2003), unit root test allowing for two structural breaks, along with the conventional unit root tests namely ADF, PP and KPSS. Due to conflicting findings of the unit root tests, ARDL bounds test approach to cointegration is used to capture the relationship between oil consumption and income. The findings of the ARDL bounds test indicated that oil and income are cointegrated. The causal relationship between the variables is also examined by employing Toda and Yamamoto (1995), approach to Granger non-causality. The outcomes of the Toda and Yamamoto (1995), procedure showed that the direction of the causality is running from real GDP to oil consumption, but not vice versa. Both bounds test and Toda and Yamamoto (1995), test results reveal that, energy conservation policies will not harm economic growth in Turkey.

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.

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