How Dependent is Growth from Primary Energy? The Dependency ratio of Energy in 33 Countries (1970-2011)

Gaël Giraud and Zeynep Kahraman ()
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Zeynep Kahraman: The Shift Project, https://theshiftproject.org/

Documents de travail du Centre d'Economie de la Sorbonne from Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne

Abstract: Except for specialized resource economics models, economics pays little attention to the role of energy in growth. This paper highlights basic difficulties behind the mainstream analytical arguments for this neglect, and provides an empirical reassessment of this role. We use an error correction model in order to estimate the long-run dependency ratio of output with respect to primary energy use in 33 countries between 1970 and 2011. Our findings suggest that this dependency is much larger than the usual calibration of output elasticity with respect to energy. This strong dependency is robust to the choice of various samples of countries and subperiods of time. In addition, we show that energy and growth are cointegrated and that primary energy consumption univocally Granger causes GDP growth. The latter confirms and extends the results on cointegration and causality between energy consumption and growth already obtained in Stern (2010)

Keywords: Dependency ratio; output elasticity; energy; energy efficiency; error correction model (search for similar items in EconPapers)
JEL-codes: N70 O40 Q43 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2014-12
New Economics Papers: this item is included in nep-ene
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Citations: View citations in EconPapers (16)

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ftp://mse.univ-paris1.fr/pub/mse/CES2014/14097.pdf (application/pdf)

Related works:
Working Paper: How Dependent is Growth from Primary Energy? The Dependency ratio of Energy in 33 Countries (1970-2011) (2014)
Working Paper: How Dependent is Growth from Primary Energy? The Dependency ratio of Energy in 33 Countries (1970-2011) (2014)
Working Paper: How Dependent is Growth from Primary Energy? The Dependency ratio of Energy in 33 Countries (1970-2011) (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:mse:cesdoc:14097

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