Energy consumption and economic growth: New insights into the cointegration relationship

Energy Economics

Volumn 33, Issue 5, 2011, Pages 782-789

  Belke, Ansgar ^a,b,c   Dobnik, Frauke ^a,d   Dreger, Christian ^b,e  

^a UNIVERSITY OF DUISBURG ESSEN   (Germany)

^b DIW BERLIN   (Germany)

^c IZA   (Germany)

^d Ruhr Graduate School in Economics RGS Econ   (Germany)

^e GOETHE UNIVERSITY   (Germany)

Author keywords

Energy consumption; Granger causality; Panel cointegration; Panel unit roots; Vector error correction models

Indexed keywords

BI-DIRECTIONAL; CAUSAL RELATIONSHIPS; CAUSALITY TEST; COINTEGRATION; COINTEGRATION RELATIONSHIP; COMMON FACTORS; ECONOMIC GROWTHS; ENERGY PRICES; GRANGER CAUSALITY; INTERNATIONAL DEVELOPMENT; NATIONAL LEVEL; OECD COUNTRIES; PANEL COINTEGRATION; UNIT ROOT; VECTOR ERROR-CORRECTION MODELS;

ECONOMICS; ENERGY UTILIZATION; PRINCIPAL COMPONENT ANALYSIS; REAL VARIABLES;

ECONOMIC AND SOCIAL EFFECTS;

COINTEGRATION ANALYSIS; ECONOMIC GROWTH; ENERGY USE; ERROR CORRECTION; GROSS DOMESTIC PRODUCT; NUMERICAL MODEL; OECD; PRINCIPAL COMPONENT ANALYSIS; VECTOR;

EID: 80052166799     PISSN: 01409883     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.eneco.2011.02.005     Document Type: Article

References (59)

1. Al-Iriani M. Energy-GDP relationship revisited: an example from GCC countries using panel causality. Energy Policy 2006, 34:3342-3350.
2. Ang J.B. CO2 emissions, energy consumption, and output in France. Energy Policy 2007, 35:4772-4778.
3. Apergis N., Payne J.E. Energy consumption and economic growth: evidence from the Commonwealth of Independent States. Energy Economics 2009, 31:641-647.
4. Apergis N., Payne J.E. Energy consumption and economic growth in Central America: evidence from a panel cointegration and error correction model. Energy Economics 2009, 31:211-216.
5. Arellano M., Bond S. Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. The Review of Economic Studies 1991, 58:277-297.
6. Asafu-Adjaye J. The relationship between energy consumption, energy prices and economic growth: time series evidence from Asian developing countries. Energy Economics 2000, 22:615-625.
7. Bai J., Ng S. A PANIC attack on unit roots and cointegration. Econometrica 2004, 72:1127-1177.
8. Baltagi B. Econometric Analysis of Panel Data 2008, vol. 4. John Wiley & Sons, Chichester. auflage edition.
9. Banerjee A., Marcellino M., Osbat C. Some cautions on the use of panel methods for integrated series of macroeconomic data. Econometrics Journal 2004, 7:322-340.
10. Bowden N., Payne J.E. The causal relationship between U.S. energy consumption and real output: a disaggregated analysis. Journal of Policy Modeling 2009, 31:180-188.
11. Campbell J.Y., Perron P. Pitfalls and opportunities: what macroeconomists should know about unit roots. NBER Macroeconomics Annual 1991, vol. 6:141-220. MIT Press, Cambridge. O.J. Blanchard, S. Fisher (Eds.).
12. Chiou-Wei S.Z., Chen C., Zhu Z. Economic growth and energy consumption revisited - evidence from linear and nonlinear granger causality. Energy Economics 2008, 30:3063-3076.
13. Chontanawat J., Hunt L.C., Pierse R. Causality between energy consumption and GDP: evidence from 30 OECD and 78 Non-OECD countries. Surrey Energy Economics Discussion Paper Series 2006, University of Surrey, Guildford.
14. Climent F., Pardo A. Decoupling factors on the energy-output linkage: the Spanish case. Energy Policy 2007, 35:522-528.
15. Costantini V., Martini C. The causality between energy consumption and economic growth: a multi-sectoral analysis using non-stationary cointegrated panel data. Energy Economics 2010, 32:591-603.
16. Dickey D.A., Fuller W.A. Distribution of the estimators for autoregressive time series with a unit root. Journal of the American Statistical Association 1979, 74:427-431.
17. Dreger C., Reimers H. The role of asset markets for private consumption: evidence from paneleconometric models. DIW Berlin Discussion Paper No. 872 2009.
18. Engle R.F., Granger C.W.J. Co-integration and error correction: representation, estimation, and testing. Econometrica 1987, 55:251-276.
19. Fatai K., Oxley L., Scrimgeour F.G. Modelling the causal relationship between energy consumption and GDP in New Zealand, Australia, India, Indonesia, The Philippines and Thailand. Mathematics and Computers in Simulation 2004, 64:431-445.
20. Gengenbach C., Palm F.C., Urbain J.P. Cointegration testing in panels with common factors. Oxford Bulletin of Economics and Statistics 2006, 68:683-719. (Supplement).
21. Harris R.I.D., Sollis R. Applied Time Series Modelling and Forecasting 2003, J. Wiley, Chichester.
22. Holtz-Eakin D., Newey W., Rosen H.S. Estimating vector autoregressions with panel data. Econometrica 1988, 56:1371-1395.
23. Huang B., Hwang M., Yang C. Causal relationship between energy consumption and GDP growth revisited: a dynamic panel data approach. Ecological Economics 2008, 67:41-54.
24. Im K.S., Pesaran M.H., Shin Y. Testing for unit roots in heterogeneous panels. Journal of Econometrics 2003, 115:53-74.
25. Johansen S. Estimation and hypothesis testing of cointegration vectors in Gaussian vector autoregressive models. Econometrica 1991, 59:1551-1580.
26. Johansen S. Likelihood-Based Inference in Cointegrated Vector Autoregressive Models 1995, Oxford University Press, Oxford.
27. Kraft J., Kraft A. On the relationship between energy and GNP. Journal of Energy and Development 1978, 3:401-403.
28. Kwiatkowski D., Phillips P.C.B., Schmidt P., Shin Y. Testing the null hypothesis of stationarity against the alternative of a unit root: how sure are we that economic time series have a unit root?. Journal of Econometrics 1992, 54:159-178.
29. Lanne M., Liski M. Trends and breaks in per-capita carbon dioxide emissions, 1870-2028. The Energy Journal 2004, 25:41-65.
30. Lee C. Energy consumption and GDP in developing countries: a cointegrated panel analysis. Energy Economics 2005, 27:415-427.
31. Lee C. The causality relationship between energy consumption and GDP in G-11 countries revisited. Energy Policy 2006, 34:1086-1093.
32. Lee C., Chang C. Energy consumption and GDP revisited: a panel analysis of developed and developing countries. Energy Economics 2007, 29:1206-1223.
33. Lee C., Chang C. Energy consumption and economic growth in Asian economies: a more comprehensive analysis using panel data. Resource and Energy Economics 2008, 30:50-65.
34. Lee C., Chang C., Chen P. Energy-income causality in OECD countries revisited: the key role of capital stock. Energy Economics 2008, 30:2359-2373.
35. Lee C., Chien M. Dynamic modelling of energy consumption, capital stock, and real income in G-7 countries. Energy Economics 2010, 32:564-581.
36. Lee C., Lee J. A panel data analysis of the demand for total energy and electricity in OECD countries. Energy Journal 2010, 31:1-23.
37. Levin A., Lin C., Chu C.J. Unit root tests in panel data: asymptotic and finite-sample properties. Journal of Econometrics 2002, 108:1-24.
38. MacKinnon J.G., Haug A.A., Michelis L. Numerical distribution functions of likelihood ratio tests for cointegration. Journal of Applied Econometrics 1999, 14:563-577.
39. Maddala G.S., Kim I. Unit Roots, Cointegration, and Structural Change 1998, Cambridge University Press, Cambridge.
40. Mahadevan R., Asafu-Adjaye J. Energy consumption, economic growth and prices: a reassessment using panel VECM for developed and developing countries. Energy Policy 2007, 35:2481-2490.
41. Mark N.C., Sul D. Cointegration vector estimation by panel DOLS and long-run money demand. Oxford Bulletin of Economics and Statistics 2003, 65:655-680.
42. Masih A.M.M., Masih R. On the temporal causal relationship between energy consumption, real income, and prices: some new evidence from Asian-energy dependent NICs based on a multivariate cointegration/vector error-correction approach. Journal of Policy Modeling 1997, 19:417-440.
43. Masih A.M.M., Masih R. A multivariate cointegrated modelling approach in testing temporal causality between energy consumption, real income and prices with an application to two Asian LDCs. Applied Economics 1998, 30:1287-1298.
44. Narayan P.K., Smyth R. Energy consumption and real GDP in G7 countries: new evidence from panel cointegration with structural breaks. Energy Economics 2008, 30:2331-2341.
45. Oh W., Lee K. Causal relationship between energy consumption and GDP revisited: the case of Korea 1970-1999. Energy Economics 2004, 26:51-59.
46. Oh W., Lee K. Energy consumption and economic growth in Korea: testing the causality relation. Journal of Policy Modeling 2004, 26:973-981.
47. Ozturk I. A literature survey on energy-growth nexus. Energy Policy 2010, 38:340-349.
48. Payne J.E. On the dynamics of energy consumption and output in the US. Applied Energy 2009, 86:575-577.
49. Payne J.E. Survey of the international evidence on the causal relationship between energy consumption and growth. Journal of Economic Studies 2010, 37:53-95.
50. Phillips P.C.B., Perron P. Testing for a unit root in time series regression. Biometrika 1988, 75:335-346.
51. Reimers H. Comparisons of tests for multivariate cointegration. Statistical Papers 1992, 33:335-359.
52. Reinsel G.C., Ahn S.K. Vector autoregressive models with unit roots and reduced rank structure: estimation, likelihood ratio test, and forecasting. Journal of Time Series Analysis 1992, 13:353-375.
53. Sari R., Soytas U. The growth of income and energy consumption in six developing countries. Energy Policy 2007, 35:889-898.
54. Sims C.A. Money, income, and causality. The American Economic Review 1972, 62:540-552.
55. Soytas U., Sari R. Energy consumption and income in G-7 countries. Journal of Policy Modeling 2006, 28:739-750.
56. Soytas U., Sari R., Ewing B.T. Energy consumption, income, and carbon emissions in the United States. Ecological Economics 2007, 62:482-489.
57. Urbain J., Westerlund J. Spurious regression in nonstationary panels with Cross-Unit cointegration. METEOR Research Memoranda No. 057 2006.
58. Wagner M., Hlouskova J. The performance of panel cointegration methods: results from a large scale simulation study. Econometric Reviews 2010, 29:182-223.
59. Zachariadis T. Exploring the relationship between energy use and economic growth with bivariate models: new evidence from G-7 countries. Energy Economics 2007, 29:1233-1253.