Energy Consumption, Employment and Causality in Japan: A Multivariate Approach
AbstractUsing Hsiao's version of Granger causality and cointegration, this study finds that employment (EP), energy consumption (EC), Real GNP (RGNP) and capital are not cointegrated. EC is found to negatively cause EP whereas EP and RNGP are found to directly cause EC. It is also found that capital negatively Granger-causes EP while RGNP and EP are found to strongly influence EC. The findings of this study seem to suggest that a policy of energy conservation may not be detrimental to a country such as Japan. In addition, the finding that energy and capital are substitutes implies that energy conservation will promote capital formation, given output constant.
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Bibliographic InfoArticle provided by Department of Economics, Delhi School of Economics in its journal Indian Economic Review.
Volume (Year): 33 (1998)
Issue (Month): 1 (January)
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Postal: University of Delhi, Delhi 110 007
Phone: 91-11-2766-6533/34/35, 2766-6703/04/05
Web page: http://www.ierdse.org/
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