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The Causal Connection of Natural Resources and Globalization with Energy Consumption in Top Asian Countries: Evidence from a Nonparametric Causality-in-Quantile Approach

Hafezali Iqbal Hussain, Muhammad Haseeb (), Manuela Tvaronavičienė (), Leonardus W. W. Mihardjo () and Kittisak Jermsittiparsert ()
Additional contact information
Muhammad Haseeb: Taylor’s Business School, Taylor’s University, 1 Jalan Taylors, Subang Jaya 47500, Selangor, Malaysia
Manuela Tvaronavičienė: Vilnius Gediminas Technical University, Sauletekio 11, 10223 Vilnius, Lithuania
Leonardus W. W. Mihardjo: Bina Nusantara University, 11530 Jakarta, Indonesia
Kittisak Jermsittiparsert: Department for Management of Science and Technology Development, Ton Duc Thang University, Ho Chi Minh City 758307, Vietnam

Energies, 2020, vol. 13, issue 9, 1-18

Abstract: Given the significance of energy conservation as a prime objective of environmental sustainability, countries all around the world are keen to identify significant factors that lead to the augmentation of energy utilization. Considering the rising emphasis of economies in utilizing natural resources to attain higher levels of globalization, the current research was aimed at investigating how the returns of natural resources and globalization affect energy consumption in top Asian economies. In doing so, the study emphasized the nonlinear relationship among the variables and applied the novel nonparametric method of causality in quantile to identify the quantile-based causal connection of natural resources and globalization on the returns and volatility of energy utilization in selected Asian countries. Moreover, the presence of nonlinearity in the variables was tested by the Brock- Dechert-Scheinkman test (BDS test), which confirmed that all variables showed nonlinear behavior. Furthermore, the findings of quantile cointegration confirmed a nonlinear long-run relationship of natural resources and globalization with energy utilization. The prime findings of causality in quantile revealed that the returns of natural resources and globalization had a significant causal effect on the returns of energy consumption in all countries. On the other hand, the volatility in energy consumption concluded no causal association with the returns of natural resources and globalization in any of the studied Asian countries. The findings are beneficial for the policymakers to formulate policies that will help to reduce the level of energy consumption.

Keywords: natural resources; globalization; energy; nonparametric causality in quantiles (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2020
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