The asymmetric Granger-causality analysis between energy consumption and income in the United States

Aviral Tiwari

Renewable and Sustainable Energy Reviews, 2014, vol. 36, issue C, 362-369

Abstract: We investigated Granger-causality between variants of the energy consumption sources and Gross Domestic Product (GDP) for the United State of America (USA). To accomplish this objective we utilized a recent approach of asymmetric Granger-causality developed by Hatemi-J for the period January 1973–October 2011. Our results indicated presence of asymmetric Granger-causality between a few variants of energy consumption sources (i.e., Coal Consumption (CC), Natural Gas Consumption (NG), Primary Energy Consumption (PE), and Total Renewable Energy Consumption (TRE)) and GDP (all measured in growth rates). Additionally, when positive shocks are analyzed we found the evidence of unidirectional Granger-causality running from GDP growth rate to growth rate of CC and from growth rate of Total Electricity End Use (EC) to GDP growth rate. Additionally, we find significant evidence of bidirectional Granger-causality between NG and GDP, PE and GDP and TRE and GDP (all measured in growth rates). However, in case of negative shocks we find that the null hypothesis that growth rates in CC and TRE do not Granger-cause GDP growth rate is rejected at 5% level of significance. These results have important implications for research analysts as well as policy makers of the USA economy.

Keywords: Asymmetric Granger-causality; Energy Consumption; Income; United States (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (26)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1364032114003049
Full text for ScienceDirect subscribers only

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:eee:rensus:v:36:y:2014:i:c:p:362-369

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/bibliographic
http://www.elsevier. ... 600126/bibliographic

DOI: 10.1016/j.rser.2014.04.066

Access Statistics for this article

Renewable and Sustainable Energy Reviews is currently edited by L. Kazmerski

More articles in Renewable and Sustainable Energy Reviews from Elsevier
Bibliographic data for series maintained by Catherine Liu ().