Energy consumption and economic growth: evidence from non-OPEC oil producing states

Irina Dolgopolova (), Qazi Muhammad Hye () and Iyala Stewart ()

Quality & Quantity: International Journal of Methodology, 2014, vol. 48, issue 2, 887-898

Abstract: According to the US EIA ( 2009 , www.eia.doe.gov ), out of the 15 largest oil producing nations in the world, 7 are not OPEC members, namely Brazil, Canada, China, Mexico, Norway, the Russian Federation, and the United States of America (USA). This paper investigates the causal relationship between energy consumption and economic growth for these non-OPEC oil producing countries. Real GDP per capita is used to measure economic growth; whereas; energy consumption is represented by four sub-variables (electric power, oil, natural gas, and coal energy). Using a panel data covering (1969–2009), this study employs the Pedroni (Econometric Theory, 20, 597–627, 2004 ) approach to determine cointegration and the (Econometrica, 55, 251–276, 1987 ) two-step procedure to explore short and long run causal effects. The results suggest that there are long run relationships between the real GDP, labour force, real capital, oil consumption, electricity consumption, gas consumption and coal consumption. Further analyses show that real GDP and oil consumption Granger cause real gross capital formation in the short run; real gross fixed capital and electricity consumption cause oil consumption in the short run; and also oil consumption and gas consumption cause electricity consumption in the short run. Copyright Springer Science+Business Media Dordrecht 2014

Keywords: Energy consumption; Economic growth; Cointegration; Causality (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://hdl.handle.net/10.1007/s11135-012-9810-4 (text/html)
Access to full text is restricted to subscribers.

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:spr:qualqt:v:48:y:2014:i:2:p:887-898

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/11135

DOI: 10.1007/s11135-012-9810-4

Access Statistics for this article

Quality & Quantity: International Journal of Methodology is currently edited by Vittorio Capecchi

More articles in Quality & Quantity: International Journal of Methodology from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().