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Energy and Economic Development: An Assessment of the State of Knowledge

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  • Toman, Michael
  • Jemelkova, Barbora

Abstract

Energy development is an integral part of enhanced economic development. The fact that expanded provision and use of energy services is strongly associated with economic development leaves open how important energy is as a causal factor in economic development, however; and energy development competes with other opportunities for scarce capital and opportunities for policy and institutional reform. In this paper we first give a brief conceptual discussion that seeks to identify the channels through which increased availability of energy services might be a key to stimulating economic development along different stages of the development process. We then examine some empirical work to see what evidence it might provide regarding possible channels of influence. The evidence underscores the importance of energy development in concert with other forms of development. More work is needed to better understand the magnitude of energy’s importance for economic development.

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Bibliographic Info

Paper provided by Resources For the Future in its series Discussion Papers with number dp-03-13.

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Date of creation: 01 Apr 2003
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Handle: RePEc:rff:dpaper:dp-03-13

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Keywords: energy; economic development; productivity; poverty alleviation;

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Cited by:
  1. Zachariadis, Theodoros, 2007. "Exploring the relationship between energy use and economic growth with bivariate models: New evidence from G-7 countries," Energy Economics, Elsevier, vol. 29(6), pages 1233-1253, November.
  2. Jacques Loesse ESSO, 2010. "The Energy Consumption-Growth Nexus in Seven Sub-Saharan African Countries," Economics Bulletin, AccessEcon, vol. 30(2), pages 1191-1209.
  3. Amiri, Arshia & Zibaei, Mansour, 2012. "Granger causality between energy use and economic growth in France with using geostatistical models," MPRA Paper 36357, University Library of Munich, Germany.
  4. Bildirici, Melike, 2012. "Economic Growth and Electricity Consumption in Africa and Asia: MS-VAR and MS-GRANGER Causality Analysis," MPRA Paper 40515, University Library of Munich, Germany.
  5. Theodoros Zachariadis, 2006. "On the exploration of casual relationship between energy and economy," University of Cyprus Working Papers in Economics 5-2006, University of Cyprus Department of Economics.
  6. Jack Gregory & David I. Stern, 2012. "Fuel Choices in Rural Maharashtra," CCEP Working Papers 1207, Centre for Climate Economics & Policy, Crawford School of Public Policy, The Australian National University.
  7. Zhang, Chuanguo & Xu, Jiao, 2012. "Retesting the causality between energy consumption and GDP in China: Evidence from sectoral and regional analyses using dynamic panel data," Energy Economics, Elsevier, vol. 34(6), pages 1782-1789.
  8. Phiri, Andrew & Nyoni, Botha, 2014. "The electricity-growth nexus in South Africa: Evidence from asymmetric co-integration and co-feature analysis," MPRA Paper 56145, University Library of Munich, Germany.
  9. Apergis, Nicholas & Payne, James E., 2009. "Energy consumption and economic growth in Central America: Evidence from a panel cointegration and error correction model," Energy Economics, Elsevier, vol. 31(2), pages 211-216.
  10. Esso, Loesse Jacques, 2010. "Threshold cointegration and causality relationship between energy use and growth in seven African countries," Energy Economics, Elsevier, vol. 32(6), pages 1383-1391, November.
  11. Bozoklu, Seref & Yilanci, Veli, 2013. "Energy consumption and economic growth for selected OECD countries: Further evidence from the Granger causality test in the frequency domain," Energy Policy, Elsevier, vol. 63(C), pages 877-881.
  12. Kemmler, Andreas & Spreng, Daniel, 2007. "Energy indicators for tracking sustainability in developing countries," Energy Policy, Elsevier, vol. 35(4), pages 2466-2480, April.
  13. Jaruwan Chontanawat & Lester C. Hunt & Richard Pierse, 2006. "Causality between Energy Consumption and GDP: Evidence from 30 OECD and 78 Non-OECD Countries," Surrey Energy Economics Centre (SEEC), School of Economics Discussion Papers (SEEDS) 113, Surrey Energy Economics Centre (SEEC), School of Economics, University of Surrey.
  14. Kahsai, Mulugeta S. & Nondo, Chali & Schaeffer, Peter V. & Gebremedhin, Tesfa G., 2012. "Income level and the energy consumption–GDP nexus: Evidence from Sub-Saharan Africa," Energy Economics, Elsevier, vol. 34(3), pages 739-746.
  15. Chontanawat, Jaruwan & Hunt, Lester C. & Pierse, Richard, 2008. "Does energy consumption cause economic growth?: Evidence from a systematic study of over 100 countries," Journal of Policy Modeling, Elsevier, vol. 30(2), pages 209-220.
  16. Sorrell, Steve, 2009. "Jevons' Paradox revisited: The evidence for backfire from improved energy efficiency," Energy Policy, Elsevier, vol. 37(4), pages 1456-1469, April.
  17. Mohamed El Hedi Arouri & Adel Ben Youssef & Hatem M'Henni & Christophe Rault, 2014. "Energy Use and Economic Growth in Africa: A Panel Granger-Causality Investigation," CESifo Working Paper Series 4844, CESifo Group Munich.
  18. Roger Fouquet, 2013. "Long Run Demand for Energy Services: the Role of Economic and Technological Development," Working Papers 2013-03, BC3.
  19. David I. Stern & Cutler J. Cleveland, 2004. "Energy and Economic Growth," Rensselaer Working Papers in Economics 0410, Rensselaer Polytechnic Institute, Department of Economics.
  20. Bouoiyour, Jamal & Selmi, Refk, 2012. "Electricity consumption and economic growth nexus: Evidence from MENA countries," MPRA Paper 49136, University Library of Munich, Germany, revised Nov 2012.
  21. Wolde-Rufael, Yemane, 2005. "Energy demand and economic growth: The African experience," Journal of Policy Modeling, Elsevier, vol. 27(8), pages 891-903, November.
  22. Pachauri, S. & Mueller, A. & Kemmler, A. & Spreng, D., 2004. "On Measuring Energy Poverty in Indian Households," World Development, Elsevier, vol. 32(12), pages 2083-2104, December.
  23. David I. Stern, 2010. "The Role of Energy in Economic Growth," CCEP Working Papers 0310, Centre for Climate Economics & Policy, Crawford School of Public Policy, The Australian National University.

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