Causality between Energy Consumption and GDP: Evidence from 30 OECD and 78 Non-OECD Countries

Jaruwan Chontanawat, Lester Hunt and Richard Pierse
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Jaruwan Chontanawat: Surrey Energy Economics Centre (SEEC), Department of Economics, University of Surrey

No 113, Surrey Energy Economics Centre (SEEC), School of Economics Discussion Papers (SEEDS) from Surrey Energy Economics Centre (SEEC), School of Economics, University of Surrey

Abstract: Energy arguably plays a vital role in economic development. Hence many studies have attempted to test for causality between energy and economic growth; however, no consensus has emerged. This paper, therefore, tests for causality between energy and GDP using a consistent data set and methodology for 30 OECD and 78 non-OECD countries. Causality from aggregate energy consumption to GDP and GDP to energy consumption is found to be more prevalent in the developed OECD countries compared to the developing non-OECD countries; implying that a policy to reduce energy consumption aimed at reducing emissions is likely to have greater impact on the GDP of the developed rather than the developing world.

Keywords: Energy; GDP; Development; Causality; Modelling (search for similar items in EconPapers)
JEL-codes: O13 Q43 (search for similar items in EconPapers)
Pages: 64 pages
Date: 2006-06
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (65)

Published in The Journal of Policy Modeling, 30(2), 2008, pp. 209-220. (An abridged version with different title)

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Persistent link: https://EconPapers.repec.org/RePEc:sur:seedps:113

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