The linkage between energy consumption and income in six emerging economies of Asia

This article examines the short- and long-run causal relationships between energy consumption and GDP of six emerging economies of Asia. Based on cointegration and vector error correction modeling the empirical results show that there exists unidirectional short- and long-run causality running from...

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Main Authors: Rafiq, Shuddsattwa, Salim, Ruhul
Format: Journal Article
Published: Emerald Group Publishing Ltd. 2011
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/36195
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author Rafiq, Shuddsattwa
Salim, Ruhul
author_facet Rafiq, Shuddsattwa
Salim, Ruhul
author_sort Rafiq, Shuddsattwa
building Curtin Institutional Repository
collection Online Access
description This article examines the short- and long-run causal relationships between energy consumption and GDP of six emerging economies of Asia. Based on cointegration and vector error correction modeling the empirical results show that there exists unidirectional short- and long-run causality running from energy consumption to GDP for China, uni-directional short-run causality from output to energy consumption for India, whilst bi-directional short-run causality for Thailand. Neutrality between energy consumption and income is found for Indonesia, Malaysia and Philippines. Both the generalized variance decompositions and impulse response functions confirm the direction of causality. These findings have important policy implications for the countries concerned. The results suggest that while India may directly initiate energy conservation measures, China and Thailand may opt for a balanced combination of alternative policies.
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institution Curtin University Malaysia
institution_category Local University
last_indexed 2025-11-14T08:44:36Z
publishDate 2011
publisher Emerald Group Publishing Ltd.
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spelling curtin-20.500.11937-361952018-05-09T08:16:13Z The linkage between energy consumption and income in six emerging economies of Asia Rafiq, Shuddsattwa Salim, Ruhul error correction model generalized variance decompositions generalized impulse response functions energy conservation cointegration This article examines the short- and long-run causal relationships between energy consumption and GDP of six emerging economies of Asia. Based on cointegration and vector error correction modeling the empirical results show that there exists unidirectional short- and long-run causality running from energy consumption to GDP for China, uni-directional short-run causality from output to energy consumption for India, whilst bi-directional short-run causality for Thailand. Neutrality between energy consumption and income is found for Indonesia, Malaysia and Philippines. Both the generalized variance decompositions and impulse response functions confirm the direction of causality. These findings have important policy implications for the countries concerned. The results suggest that while India may directly initiate energy conservation measures, China and Thailand may opt for a balanced combination of alternative policies. 2011 Journal Article http://hdl.handle.net/20.500.11937/36195 10.1108/17468801111104377 Emerald Group Publishing Ltd. fulltext
spellingShingle error correction model
generalized variance decompositions
generalized impulse response functions
energy conservation
cointegration
Rafiq, Shuddsattwa
Salim, Ruhul
The linkage between energy consumption and income in six emerging economies of Asia
title The linkage between energy consumption and income in six emerging economies of Asia
title_full The linkage between energy consumption and income in six emerging economies of Asia
title_fullStr The linkage between energy consumption and income in six emerging economies of Asia
title_full_unstemmed The linkage between energy consumption and income in six emerging economies of Asia
title_short The linkage between energy consumption and income in six emerging economies of Asia
title_sort linkage between energy consumption and income in six emerging economies of asia
topic error correction model
generalized variance decompositions
generalized impulse response functions
energy conservation
cointegration
url http://hdl.handle.net/20.500.11937/36195