A re-examination of causal relation between economic growth and energy consumption: Evidence from 91 countries
ECONOMICS BULLETIN, vol.37, pp.790-806, 2017 (ESCI, Scopus)
- Publication Type: Article / Article
- Volume: 37
- Publication Date: 2017
- Journal Name: ECONOMICS BULLETIN
- Journal Indexes: Emerging Sources Citation Index (ESCI), Scopus
- Page Numbers: pp.790-806
- Istanbul University Affiliated: Yes
Abstract
This paper empirically examines the causal relationship between energy consumption and economic growth, by controlling with CO2 emission and economic globalization in multivariate models, in a sample of the 91 less developed, developing and developed countries individually, in the period of 1970-2013. I apply the Toda-Yamamoto augmented Granger non-causality testing procedure. I observe a significant unidirectional causality running from energy consumption to economic growth in twenty-one countries. In thirty-one countries, conservation hypothesis is valid. Empirical evidence also shows that there is a feedback hypothesis in sixteen countries and no causal relation in only twenty-three countries.