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Energy Consumption-Economic Growth Nexus: Does the Level of Aggregation Matter?

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Author Info

  • Mehdi Abid

    (University of Sousse, Tunisia)

  • Maamar Sebri

    (University of Sousse, Tunisia)

Abstract

This study investigates the causal relationship between energy consumption and economic performance for the total economy as well as for industry, transport, and residential sectors for Tunisia during the period 1980-2007. The application of Vector error correction model (VECM) for non-stationary and cointegrated series suggests that causality directions at aggregated and disaggregated levels are mixed. However, the findings have important policy implications. While at the level of the total economy, energy plays an important role in development of Tunisian economy, it seems not to have an impact on economic performance at sectoral level. We conclude that results appear to be dependent on the level of aggregation and therefore policy advices should be given with caution.

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File URL: http://www.econjournals.com/index.php/ijeep/article/download/118/100
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Bibliographic Info

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

Volume (Year): 2 (2012)
Issue (Month): 2 ()
Pages: 55-62

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Handle: RePEc:eco:journ2:2012-02-2

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Related research

Keywords: Energy sector; Economic growth; Granger causality; Vector Error Correction Models; Tunisia.;

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References

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  10. James G. MacKinnon, 1995. "Numerical Distribution Functions for Unit Root and Cointegration Tests," Working Papers 918, Queen's University, Department of Economics.
  11. Belloumi, Mounir, 2009. "Energy consumption and GDP in Tunisia: Cointegration and causality analysis," Energy Policy, Elsevier, vol. 37(7), pages 2745-2753, July.
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  13. Gross, Christian, 2012. "Explaining the (non-) causality between energy and economic growth in the U.S.—A multivariate sectoral analysis," Energy Economics, Elsevier, vol. 34(2), pages 489-499.
  14. Khalid Mushtaq & Faisal Abbas & Abedullah & Abdul Ghafoor, 2007. "Energy Use for Economic Growth: Cointegration and Causality Analysis from the Agriculture Sector of Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 46(4), pages 1065-1073.
  15. Jobert, Thomas & Karanfil, Fatih, 2007. "Sectoral energy consumption by source and economic growth in Turkey," Energy Policy, Elsevier, vol. 35(11), pages 5447-5456, November.
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Citations

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Cited by:
  1. Maria Pempetzoglou, 2014. "Electricity Consumption and Economic Growth: A Linear and Nonlinear Causality Investigation for Turkey," International Journal of Energy Economics and Policy, Econjournals, vol. 4(2), pages 263-273.
  2. 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.
  3. Rodriguez-Oreggia, Eduardo & Yepez-Garcia, Rigoberto Ariel, 2014. "Income and energy consumption in Mexican households," Policy Research Working Paper Series 6864, The World Bank.
  4. Ben Salha, Ousama & Sebri, Maamar, 2013. "A multivariate analysis of the causal flow between renewable energy consumption and GDP in Tunisia," MPRA Paper 52572, University Library of Munich, Germany.
  5. 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.
  6. Tang, Chor Foon & Shahbaz, Muhammad, 2013. "Sectoral analysis of the causal relationship between electricity consumption and real output in Pakistan," Energy Policy, Elsevier, vol. 60(C), pages 885-891.

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