Variable selection in the analysis of energy consumption-growth nexus

Mariam Camarero, Anabel Forte (), Gonzalo García-Donato (), Yurena Mendoza () and Javier Ordóñez
Additional contact information
Anabel Forte: Department of Statistics and Operations Research, Universitat de València, Spain
Gonzalo García-Donato: Department of Economics and Finance, Universidad de Castilla-La Mancha, Albacete, Spain
Yurena Mendoza: Department of Applied Economics II, Universitat de València, Spain

No 2015/15, Working Papers from Economics Department, Universitat Jaume I, Castellón (Spain)

Abstract: There is abundant empirical literature that focuses on whether energy consumption is a critical driver of economic growth. The evolution of this literature has largely consisted of attempts to solve the problems and answer the criticisms arising from earlier studies. One of the most common criticisms is that previous work concentrates on the bivariate relationship, energy consumptioneconomic growth. Many authors try to overcome this critique using control variables. However, the choice of these variables has been ad hoc, made according to the subjective economic rationale of the authors. Our contribution to this literature is to apply a robust probabilistic model to select the explanatory variables from a large set of potential candidates in the case of the US from 1949 to 2010, not only for an aggregate analysis but also for a sector analysis. The results high-light the critical role of public spending and energy intensity in the explanation of growth. Furthermore, since the study reveals different explanatory variables for each sector, it indicates the importance of policy decisions specifically aimed at different sectors.

Keywords: Energy consumption; economic growth; control variables; causality; probabilistic model; variable selection (search for similar items in EconPapers)
JEL-codes: C11 C52 O44 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2015
New Economics Papers: this item is included in nep-ene
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (24)

Downloads: (external link)
http://www.doctreballeco.uji.es/wpficheros/Camarero_et_al_15_2015.pdf (application/pdf)

Related works:
Journal Article: Variable selection in the analysis of energy consumption–growth nexus (2015)
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:jau:wpaper:2015/15

Access Statistics for this paper

More papers in Working Papers from Economics Department, Universitat Jaume I, Castellón (Spain) Contact information at EDIRC.
Bibliographic data for series maintained by María Aurora Garcia Gallego ().