Energy Growth Causality: A Panel Analysis

Understanding the impact of energy consumption on economic growth is an important consideration in the formulation of both energy and environmental policies. Motivated by this development, this paper empirically re-examines the direction of causality and the sign (in the panel sense) between energy...

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Main Authors: Evan, Lau, Xiao-Hui, Chye, Chee-Keong, Choong
Format: Article
Language:English
Published: International Conference On Applied Economics (ICOAE) 2011
Subjects:
Online Access:http://ir.unimas.my/id/eprint/7280/
http://ir.unimas.my/id/eprint/7280/1/ENERGY-GROWTH%20CAUSALITY%20A%20PANEL%20ANALYSIS.pdf
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author Evan, Lau
Xiao-Hui, Chye
Chee-Keong, Choong
author_facet Evan, Lau
Xiao-Hui, Chye
Chee-Keong, Choong
author_sort Evan, Lau
building UNIMAS Institutional Repository
collection Online Access
description Understanding the impact of energy consumption on economic growth is an important consideration in the formulation of both energy and environmental policies. Motivated by this development, this paper empirically re-examines the direction of causality and the sign (in the panel sense) between energy consumption (EC) and the gross-domestic product (GDP) for seventeen selected Asian countries. Results reveal long-run stable equilibriums in these countries, while the EC brings about a positive impact on GDP. Causality runs from EC to GDP in the short-run, while the long-run causal linkage exists from GDP to EC. This indicates that energy is a force for economic growth in the short-run, but in the long-run, the EC is fundamentally driven by economic growth. Efficient coordination and cooperation towards the implementation of energy conservation policies to support sustainable economic development should be in the regional agenda.
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spelling unimas-72802016-12-28T02:09:52Z http://ir.unimas.my/id/eprint/7280/ Energy Growth Causality: A Panel Analysis Evan, Lau Xiao-Hui, Chye Chee-Keong, Choong HC Economic History and Conditions Understanding the impact of energy consumption on economic growth is an important consideration in the formulation of both energy and environmental policies. Motivated by this development, this paper empirically re-examines the direction of causality and the sign (in the panel sense) between energy consumption (EC) and the gross-domestic product (GDP) for seventeen selected Asian countries. Results reveal long-run stable equilibriums in these countries, while the EC brings about a positive impact on GDP. Causality runs from EC to GDP in the short-run, while the long-run causal linkage exists from GDP to EC. This indicates that energy is a force for economic growth in the short-run, but in the long-run, the EC is fundamentally driven by economic growth. Efficient coordination and cooperation towards the implementation of energy conservation policies to support sustainable economic development should be in the regional agenda. International Conference On Applied Economics (ICOAE) 2011 Article PeerReviewed text en http://ir.unimas.my/id/eprint/7280/1/ENERGY-GROWTH%20CAUSALITY%20A%20PANEL%20ANALYSIS.pdf Evan, Lau and Xiao-Hui, Chye and Chee-Keong, Choong (2011) Energy Growth Causality: A Panel Analysis. International Conference On Applied Economics (ICOAE). pp. 355-361. ISSN 1791-9347 http://kastoria.teikoz.gr/icoae2/wordpress/wp-content/uploads/2011/10/038.pdf
spellingShingle HC Economic History and Conditions
Evan, Lau
Xiao-Hui, Chye
Chee-Keong, Choong
Energy Growth Causality: A Panel Analysis
title Energy Growth Causality: A Panel Analysis
title_full Energy Growth Causality: A Panel Analysis
title_fullStr Energy Growth Causality: A Panel Analysis
title_full_unstemmed Energy Growth Causality: A Panel Analysis
title_short Energy Growth Causality: A Panel Analysis
title_sort energy growth causality: a panel analysis
topic HC Economic History and Conditions
url http://ir.unimas.my/id/eprint/7280/
http://ir.unimas.my/id/eprint/7280/
http://ir.unimas.my/id/eprint/7280/1/ENERGY-GROWTH%20CAUSALITY%20A%20PANEL%20ANALYSIS.pdf