Redefining the energy-growth nexus with an index for sustainable economic welfare in Europe
Angeliki N. Menegaki,
António Marques () and
José Fuinhas ()
Energy, 2017, vol. 141, issue C, 1254-1268
This paper inaugurates the study of the energy-sustainable economic growth for Europe. It is novel both because it calculates an Index for Sustainable Economic Welfare (ISEW) index for European countries, but foremost because it compares the conventional energy-growth nexus with the newly appeared energy-sustainable growth nexus. Also, it goes further by suggesting ways to overcome the limitations pointed out to the use of the conventional GDP. The paper uses the road sector energy consumption, which is in accordance with the enormous discussion about the high energy intensity of the road transport sector and about the huge dependence from fossil sources of this sector. The dynamic Driscoll-Kraay estimator is also used, which allows decomposing the effects in the short- and long-run and is also robust in the presence of cross-sectional dependence. Results show that economic growth and sustainable economic welfare are not perfect substitute variables. In the long-run, the feedback hypothesis is verified only for sustainable growth.
Keywords: Driscoll-Kraay estimator; Europe; GDP growth; ISEW; Road energy consumption (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:141:y:2017:i:c:p:1254-1268
Access Statistics for this article
Energy is currently edited by Henrik Lund and Mark J. Kaiser
More articles in Energy from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().