Does energy consumption affect growth?
AbstractA review of the literature reveals discrepancies between estimates of the impact of energy consumption on output and growth. This paper highlights the importance of underlying theoretical concerns, extends a neoclassical growth model to include energy consumption, applies panel data cointegration methods that deal with cross-sectional dependence and structural breaks to a sample of thirteen high energy consuming countries, and provides empirical estimates of the impact of energy consumption on output and growth. Results suggest that energy consumption has a permanent positive effect on output levels but has no statistically significant effect on growth. We suggest that rebound effects may confound the observable effects of energy on growth and that the effects on the environment of attempts to stimulate economic growth may never be forecast correctly ex ante.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Auckland University of Technology, Department of Economics in its series Working Papers with number 2012-04.
Length: 23 pages
Date of creation: Apr 2012
Date of revision:
Contact details of provider:
Postal: Commerce House, 360 Queen Street, Private Bag 92006, Auckland 1020
Phone: +64 9 917-9721
Fax: +64 9 917-9976
Web page: http://www.aut.ac.nz/business/working-paper-series
More information through EDIRC
Energy consumption per capita; Level effect; Growth effect.;
Find related papers by JEL classification:
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
- Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-08-23 (All new papers)
- NEP-ENE-2012-08-23 (Energy Economics)
- NEP-FDG-2012-08-23 (Financial Development & Growth)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Carruth, A.A. & Hooker, M.A. & Oswald, A.J., 1998.
"Unemployment Equilibria and Input Prices: Theory and Evidence from the United States,"
The Warwick Economics Research Paper Series (TWERPS)
496, University of Warwick, Department of Economics.
- Alan A. Carruth & Mark A. Hooker & Andrew J. Oswald, 1998. "Unemployment Equilibria And Input Prices: Theory And Evidence From The United States," The Review of Economics and Statistics, MIT Press, vol. 80(4), pages 621-628, November.
- Carruth,a. & Hooker, N. & Oswald,A., 1997. "Unemployment Equilibria and Input Prices: Theory and Evidence from the United States," Papers 22, Centre for Economic Performance & Institute of Economics.
- Arbex, Marcelo & Perobelli, Fernando S., 2010. "Solow meets Leontief: Economic growth and energy consumption," Energy Economics, Elsevier, vol. 32(1), pages 43-53, January.
- Smulders, J.A. & Nooij, M. de, 2003.
"The impact of energy conservation on technology and economic growth,"
Open Access publications from Tilburg University
urn:nbn:nl:ui:12-123121, Tilburg University.
- Smulders, Sjak & de Nooij, Michiel, 2003. "The impact of energy conservation on technology and economic growth," Resource and Energy Economics, Elsevier, vol. 25(1), pages 59-79, February.
- David I. Stern, 1998.
"A multivariate cointegration analysis of the role of energy in the U.S. macroeconomy,"
Working Papers in Ecological Economics
9803, Australian National University, Centre for Resource and Environmental Studies, Ecological Economics Program.
- Stern, David I., 2000. "A multivariate cointegration analysis of the role of energy in the US macroeconomy," Energy Economics, Elsevier, vol. 22(2), pages 267-283, April.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gail Pacheco).
If references are entirely missing, you can add them using this form.