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Energy consumption and economic growth nexus in Portugal, Italy, Greece, Spain and Turkey: An ARDL bounds test approach (1965–2009)

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  • Fuinhas, José Alberto
  • Marques, António Cardoso

Abstract

The paper examines the nexus between primary energy consumption and growth in Portugal, Italy, Greece, Spain and Turkey (PIGST), with annual time series data, from 1965 to 2009. PIGST are southern European economies which have experienced several episodes that make them of particular interest to the study of periods of economic expansion and stagnation. An ARDL bounds test approach is a suitable technique to examine energy-growth nexus, within the context of countries with both sporadic shocks (outliers) and permanent shocks (structural breaks). Empirical results suggest bidirectional causality between energy and growth in both the long-run and short-run, supporting the feedback hypothesis. The results reveal themselves to be robust to panel framework. An energy conservation policy will reduce GDP growth, while a saving phenomenon is observed, since one additional unit of product requires less than one unit of energy.

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Bibliographic Info

Article provided by Elsevier in its journal Energy Economics.

Volume (Year): 34 (2012)
Issue (Month): 2 ()
Pages: 511-517

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Handle: RePEc:eee:eneeco:v:34:y:2012:i:2:p:511-517

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Web page: http://www.elsevier.com/locate/eneco

Related research

Keywords: ARDL bounds test; Short and long-run elasticities; Energy-growth nexus; PIGST;

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References

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Citations

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Cited by:
  1. Muhammad, Shahbaz, 2012. "Multivariate granger causality between CO2 Emissions, energy intensity, financial development and economic growth: evidence from Portugal," MPRA Paper 37774, University Library of Munich, Germany, revised 31 Mar 2012.
  2. Kyoung-Min Lim & Seul-Ye Lim & Seung-Hoon Yoo, 2014. "Oil Consumption, CO 2 Emission, and Economic Growth: Evidence from the Philippines," Sustainability, MDPI, Open Access Journal, vol. 6(2), pages 967-979, February.
  3. Marques, Luís Miguel & Fuinhas, José Alberto & Marques, António Cardoso, 2013. "Does the stock market cause economic growth? Portuguese evidence of economic regime change," Economic Modelling, Elsevier, vol. 32(C), pages 316-324.
  4. Can Tansel TUGCU, 2013. "Disaggregate Energy Consumption and Total Factor Productivity: A Cointegration and Causality Analysis for the Turkish Economy," International Journal of Energy Economics and Policy, Econjournals, vol. 3(3), pages 307-314.
  5. Shahbaz, Muhammad & Abosedra, Salah & Sbia, Rashid, 2013. "Energy Consumption, Financial Development and Growth: Evidence from Cointegration with unknown Structural breaks in Lebanon," MPRA Paper 46580, University Library of Munich, Germany.
  6. Fuinhas, José Alberto & Marques, António Cardoso, 2013. "Rentierism, energy and economic growth: The case of Algeria and Egypt (1965–2010)," Energy Policy, Elsevier, vol. 62(C), pages 1165-1171.

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