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A Review of the Nexus between Energy Consumption and Economic Growth in the BRICS Countries

Author

Listed:
  • Hlalefang Khobai

    (Department of Economics, Nelson Mandela Metropolitan University, South Africa and DST/NRF South Africa Research Chair in Industrial Development, University of Johannesburg, South Africa,)

  • Sanderson Abel

    (Bankers Association of Zimbabwe, Zimbabwe,)

  • Pierre Le Roux

    (Department of Economics, Nelson Mandela University, South Africa.)

Abstract

The study investigates the long run relationship and causal relationship between energy consumption and economic growth in the BRICS countries during the period 1990 2018. The Pedroni panel co-integration method is applied to analyse the co-integration relationship among the variables. The causality relationship among the variables is analysed using Pair-wise Granger-causality technique. The study s results reveal that there is a long run relationship between economic growth, energy consumption, employment and trade openness in Brics countries. The research outcome further detected a unidirectional causality flowing from economic growth to energy consumption. This implies that the conservation policies that curb unnecessary loss in energy could be implemented in the BRICS countries without adversely affecting economic growth.

Suggested Citation

  • Hlalefang Khobai & Sanderson Abel & Pierre Le Roux, 2021. "A Review of the Nexus between Energy Consumption and Economic Growth in the BRICS Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 11(3), pages 424-431.
    • Handle: RePEc:eco:journ2:2021-03-52
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    More about this item

    Keywords

    Energy consumption; Economic growth; Causality; BRICS countries;
    All these keywords.

    JEL classification:

    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
    • Q47 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy Forecasting
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development

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