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The causality between energy consumption and economic growth: A multi-sectoral analysis using non-stationary cointegrated panel data

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  • Costantini, Valeria
  • Martini, Chiara

Abstract

The increasing attention given to global energy issues and the international policies needed to reduce greenhouse gas emissions have given a renewed stimulus to research interest in the linkages between the energy sector and economic performance at country level. In this paper, we analyse the causal relationship between economy and energy by adopting a Vector Error Correction Model for non-stationary and cointegrated panel data with a large sample of developed and developing countries and four distinct energy sectors. The results show that alternative country samples hardly affect the causality relations, particularly in a multivariate multi-sector framework.

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Bibliographic Info

Article provided by Elsevier in its journal Energy Economics.

Volume (Year): 32 (2010)
Issue (Month): 3 (May)
Pages: 591-603

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Handle: RePEc:eee:eneeco:v:32:y:2010:i:3:p:591-603

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Keywords: Energy sector Panel unit roots Panel cointegration Vector Error Correction Models Granger causality;

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