Energy consumption and economic growth in the next 11 countries: The bootstrapped autoregressive metric causality approach
Ertugrul Yıldırım (),
Deniz Şükrüoğlu and
Alper Aslan
Energy Economics, 2014, vol. 44, issue C, 14-21
Abstract:
Departing from previous literature, using bootstrapped autoregressive metric causality approach which is more robust against non-stationarity and break problems than lag augmented tests, this study analyzes causal relation between economic growth and energy consumption in the Next 11 countries. Estimating a trivariate model consisting of GDP per capita, energy consumption per capita and gross capital formation, it was found that the neutrality hypothesis is valid for all of the countries except for Turkey. These findings imply that energy conservation-oriented policies should be implemented in Bangladesh, Egypt, Indonesia, Iran, Korea, Mexico, Pakistan and Philippines. In the case of Turkey, a unidirectional causal nexus was found from energy consumption to economic growth. Since the growth hypothesis is valid, energy conservation policy poses an obstacle for economic growth in Turkey.
Keywords: Energy consumption; Economic growth; Causality; Next 11 countries (search for similar items in EconPapers)
JEL-codes: C3 C32 Q4 Q43 Q48 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (77)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:44:y:2014:i:c:p:14-21
DOI: 10.1016/j.eneco.2014.03.010
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