Energy–growth nexus revisited: an empirical application on transition countries

Mahmut Zortuk () and Semih Karacan ()
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Mahmut Zortuk: Dumlupinar University
Semih Karacan: Dumlupinar University

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, 2018, vol. 20, issue 2, No 6, 605-623

Abstract: Abstract This study investigates the energy–growth nexus for transition countries analysing Granger causality between GDP growth per capita and energy use per capita. For this purpose, 17 countries located at Central and Eastern Europe and Caucasian region are chosen and a panel dataset consisting of these countries for the available period of 1990–2011 is studied. In the study, Granger causality is investigated using bootstrapped panel causality approach proposed by Konya (Econ Modell 23(6):978–992, 2006). The approach gives consistent results in case of cross-sectional dependency and heterogeneity of slope coefficients between countries. Causality is examined for two scenarios: one with a trend and one without a trend. The results reveal that, in general, there is no causality running between energy consumption and economic growth, yet there is causality running from energy consumption to economic growth for some countries and sign of the relationship is always negative. Therefore, increases in energy consumption harm economic growth.

Keywords: Energy consumption; Economic growth; Transition countries; Panel causality (search for similar items in EconPapers)
Date: 2018
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DOI: 10.1007/s10668-016-9901-9

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