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Energy-Growth Causality: Asian Countries Revisited

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Author Info

  • Evan Lau

    (Department of Economics, Faculty of Economics and Business, Universiti Malaysia Sarawak, Malaysia)

  • Xiao-Hui Chye

    (Department of Economics, Faculty of Economics and Business, Universiti Malaysia Sarawak, Malaysia)

  • Chee-Keong Choong

    (Centre for Economic Studies, Faculty of Business and Finance, Universiti Tunku, Malaysia)

Abstract

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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File URL: http://www.econjournals.com/index.php/ijeep/article/download/73/63
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File URL: http://www.econjournals.com/index.php/ijeep/article/view/73/63
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Bibliographic Info

Article provided by Econjournals in its journal International Journal of Energy Economics and Policy.

Volume (Year): 1 (2011)
Issue (Month): 4 ()
Pages: 140-149

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Handle: RePEc:eco:journ2:2011-04-5

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Related research

Keywords: Energy consumption; Panel analysis; Economic growth; Asian countries;

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References

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Citations

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Cited by:
  1. Andreas Georgantopoulos, 2012. "Electricity Consumption and Economic Growth: Analysis and Forecasts using VAR/VEC Approach for Greece with Capital Formation," International Journal of Energy Economics and Policy, Econjournals, vol. 2(4), pages 263-278.
  2. Farhani, Sahbi & Shahbaz, Muhammad & Sbia, Rashid & Chaibi, Anissa, 2014. "What does MENA region initially need: Grow output or mitigate CO2 emissions?," Economic Modelling, Elsevier, vol. 38(C), pages 270-281.
  3. Farhani, Sahbi & Shahbaz, Muhammad & Sbia, Rashid, 2013. "What is MENA Region Initially Needed: Grow Output or Mitigate CO2 Emissions?," MPRA Paper 48859, University Library of Munich, Germany, revised 05 Aug 2013.
  4. Sahbi Farhani & Jaleleddine Ben Rejeb, 2012. "Energy Consumption, Economic Growth and CO2 Emissions: Evidence from Panel Data for MENA Region," International Journal of Energy Economics and Policy, Econjournals, vol. 2(2), pages 71-81.
  5. Muslima Zahan & Ron S. Kenett, 2013. "Modeling and Forecasting Energy Consumption in the Manufacturing Industry in South Asia," International Journal of Energy Economics and Policy, Econjournals, vol. 3(1), pages 87-98.
  6. Hanan Naser, 2014. "Oil Market, Nuclear Energy Consumption and Economic Growth: Evidence from Emerging Economies," International Journal of Energy Economics and Policy, Econjournals, vol. 4(2), pages 288-296.
  7. Souhila EDDRIEF-CHERFI & Baghdad KOURBALI, 2012. "Energy Consumption and Economic Growth in Algeria: Cointegration and Causality Analysis," International Journal of Energy Economics and Policy, Econjournals, vol. 2(4), pages 238-249.
  8. Bouoiyour, Jamal & Selmi, Refk, 2012. "Electricity consumption and economic growth nexus: Evidence from MENA countries," MPRA Paper 49136, University Library of Munich, Germany, revised Nov 2012.
  9. Nicholas Apergisu & Dan Danuletiu, 2012. "Energy Consumption and Growth in Romania: Evidence from a Panel Error Correction Model," International Journal of Energy Economics and Policy, Econjournals, vol. 2(4), pages 348-356.

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