Review Paper on Economic Growth Aggregate Energy Consumption Nexus

Zaidi Isa, Ahmed R.M. Al Sayed and Sek Siok Kun
Additional contact information
Zaidi Isa: School of Mathematical Sciences, Universiti Kebangsaan Malaysia, 43600 Bangi, Selangor, Malaysia.
Ahmed R.M. Al Sayed: School of Mathematical Sciences, Universiti Kebangsaan Malaysia, 43600 Bangi, Selangor, Malaysia.
Sek Siok Kun: School of Mathematical Sciences, Universiti Kebangsaan Malaysia, 43600 Bangi, Selangor, Malaysia.

International Journal of Energy Economics and Policy, 2015, vol. 5, issue 2, 385-401

Abstract: The aim of this study is to survey the empirical studies which interested in detecting the causal relationship between energy consumption (EC) and economic growth, and to provide some recommendations to policymakers for designing the environmental policies and policy implications of effective energy. Our review paper concentrates to make a survey depending on included variables in the studies, thus it has been classified into two groups; bivariate framework and multivariate framework. The results show that the multivariate studies support the feedback hypothesis more than the bivariate studies with (45.7%) and (29.5%) respectively. In contrast of that in neutrality hypothesis, the bivariate framework studies support it with (26.2%) which is more than that in multivariate framework (12.1%) only. In the other hand the results by considering the whole empirical studies in our survey support the hypotheses as the following; (34.3%), (24.0%), (19.7%) and (22.0%) for the feedback, growth, conservation d neutrality hypothesis respectively. Moreover we provide some suggestions for future studies; it should focuses more on new approaches consist the multivariate framework rather than by applying common methods with the same variables in bivariate framework only, which could be solved by adding unprecedented variables such as technology innovation, index investment and environmental quality with applying environmental Kuznets curve. In the analysis should considers the possibility of structural breaks, the coefficients signs, and distinguish between the short and long run causality relationship. And it should include two distinct groups of EC; renewable and nonrenewable energy rather than aggregate or disaggregate energy consumption.

Keywords: Economic Growth; Aggregate Energy Consumption; Causality Relationship (search for similar items in EconPapers)
JEL-codes: Q4 Q43 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.econjournals.com/index.php/ijeep/article/download/991/642 (application/pdf)
http://www.econjournals.com/index.php/ijeep/article/view/991/642 (text/html)

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:eco:journ2:2015-02-01

Access Statistics for this article

International Journal of Energy Economics and Policy is currently edited by Ilhan Ozturk

More articles in International Journal of Energy Economics and Policy from Econjournals
Bibliographic data for series maintained by Ilhan Ozturk ().