Nexus between non-renewable energy demand and economic growth in Bangladesh: Application of Maximum Entropy Bootstrap approach

Mohammad Jahangir Alam, Mumtaz Ahmed and Ismat Ara Begum

Renewable and Sustainable Energy Reviews, 2017, vol. 72, issue C, 399-406

Abstract: The paper analyzes the causal relationship between energy demand and economic growth in Bangladesh using annual time series data from 1980 to 2011 from World Development Indicator (WDI), Database of the World Bank. Since the results of causal direction are sensitive to the models being employed, the paper uses Maximum Entropy Bootstrap (meboot) due to its superiority to overcome small sample bias and limitation of asymptotic distribution theory. To avoid the omitted variables bias, the paper uses multivariate framework in production function specification. The paper finds that a unidirectional causality runs from economic growth to energy demand which indicates that conservative policy might not harm the Bangladesh economy but since economic progress leads higher energy consumption, demand side management of energy and exploring renewable energy sources are must. The implications are discussed.

Keywords: Causality; Asymptotic theory; Production function; Meboot approach (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1364032117300072
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:rensus:v:72:y:2017:i:c:p:399-406

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/bibliographic
http://www.elsevier. ... 600126/bibliographic

DOI: 10.1016/j.rser.2017.01.007

Access Statistics for this article

Renewable and Sustainable Energy Reviews is currently edited by L. Kazmerski

More articles in Renewable and Sustainable Energy Reviews from Elsevier
Bibliographic data for series maintained by Catherine Liu (repec@elsevier.com).