Does energy efficiency promote economic growth?: evidence from a multi-country and multi-sector panel data set

Ashish Rajbhandari () and Fan Zhang

No 8077, Policy Research Working Paper Series from The World Bank

Abstract: This paper examines the causal relationship between energy efficiency and economic growth based on panel data for 56 high- and middle-income countries from 1978 to 2012. Using a panel vector autoregression approach, the studyfinds evidence of a long-run Granger causality from economic growth to lower energy intensity for all countries. The study also finds evidence of long-run bidirectional causality between lower energy intensity and higher economic growth for middle-income countries. This finding suggests that beyond climate benefits, middle-income countries may also earn an extra growth dividend from energy efficiency measures.

Keywords: Economic Growth; Energy Consumption; Economic Theory&Research; Industrial Economics; Energy Conservation&Efficiency; Environment and Energy Efficiency (search for similar items in EconPapers)
Date: 2017-05-30
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Citations: View citations in EconPapers (8)

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Journal Article: Does energy efficiency promote economic growth? Evidence from a multicountry and multisectoral panel dataset (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:wbk:wbrwps:8077

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