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Energy consumption and the size of the informal economy

Mustafa Metin Basbay, Ceyhun Elgin and Orhan Torul ()

No 2016-6, Economics Discussion Papers from Kiel Institute for the World Economy (IfW Kiel)

Abstract: The authors empirically investigate the relationship between energy consumption and the size of the informal economy. Relying on panel data regression models, their results show that at the aggregate level, energy intensity is inversely related to the size of the informal sector, providing actual empirical evidence on the presence of high labor and low capital intensity in the informal economy. Furthermore, the authors also find some support towards the presence of non-linearity and asymmetry in this relationship.

Keywords: informal sector; energy consumption; panel data (search for similar items in EconPapers)
JEL-codes: E26 O13 O17 P48 (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-ene, nep-iue and nep-mac
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http://www.economics-ejournal.org/economics/discussionpapers/2016-6
https://www.econstor.eu/bitstream/10419/127428/1/847334252.pdf (application/pdf)

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