Energy consumption and economic growth: Parametric and non-parametric causality testing for the case of Greece

Theologos Dergiades, Georgios Martinopoulos and Lefteris Tsoulfidis ()

Energy Economics, 2013, vol. 36, issue C, 686-697

Abstract: The objective of this paper is to contribute towards the understanding of the linear and non-linear causal linkages between energy consumption and economic activity, making use of annual time series data of Greece for the period 1960–2008. Two are the salient features of our study: first, the total energy consumption has been adjusted for qualitative differences among its constituent components through the thermodynamics of energy conversion. In doing so, we rule out the possibility of a misleading inference with respect to causality due to aggregation bias. Second, the investigation of the causal linkage between economic growth and the adjusted for quality total energy consumption is conducted within a non-linear context. Our empirical results reveal significant unidirectional both linear and non-linear causal linkages running from total useful energy to economic growth. These findings may provide valuable information for the contemplation of more effective energy policies with respect to both the consumption of energy and environmental protection.

Keywords: Energy consumption; Economic growth; Non-linear Granger causality (search for similar items in EconPapers)
JEL-codes: C14 C22 Q43 Q48 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (64)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0140988312003155
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Energy Consumption and Economic Growth:Parametric and Non-Parametric Causality Testing for the Case of Greece (2011)
Working Paper: Energy Consumption and Economic Growth: Parametric and Non-Parametric Causality Testing for the Case of Greece (2011)
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:eneeco:v:36:y:2013:i:c:p:686-697

DOI: 10.1016/j.eneco.2012.11.017

Access Statistics for this article

Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant

More articles in Energy Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().