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Energy Consumption-Youth Unemployment Nexus in Europe: Evidence from Panel Cointegration and Panel Causality Analyses

Author

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  • Faik Bilgili

    (Department of Economics, Faculty of Economics and Administrative Sciences, Erciyes University, Kayseri, Turkey,)

  • Ilhan Ozturk

    (Faculty of Economics and Administrative Sciences, Cag University, Mersin, Turkey,)

  • Emrah Kocak

    (Ahi Evran University, Kirsehir, Turkey,)

  • Umit Bulut

    (Department of Economics, Faculty of Economics and Administrative Sciences, Ahi Evran University, Kirsehir, Turkey.)

Abstract

This paper employs a panel data set of 20 European countries and examines the impacts of energy consumption on youth unemployment over the period 1990-2011. We follow panel fully modified ordinary least squares (FMOLS) and panel dynamic ordinary least squares (DOLS) estimations, panel Granger causality tests based on vector error correction model and panel causality tests of Emirmahmutoglu and Kose (2011) and Dumitrescu and Hurlin (2012). According to the panel FMOLS and DOLS estimators results, there is negative impact of energy consumption on youth unemployment rates. In addition, the causality tests yield unidirectional causality from energy consumption to youth unemployment rates. The outcome of this paper explores the importance of energy policies to decrease youth unemployment rates and, hence, it may suggests policymakers follow relevant policies encouraging energy consumption and new potential energy investments to diminish youth unemployment rates.

Suggested Citation

  • Faik Bilgili & Ilhan Ozturk & Emrah Kocak & Umit Bulut, 2017. "Energy Consumption-Youth Unemployment Nexus in Europe: Evidence from Panel Cointegration and Panel Causality Analyses," International Journal of Energy Economics and Policy, Econjournals, vol. 7(2), pages 193-201.
    • Handle: RePEc:eco:journ2:2017-02-25
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    2. Mihaela Simionescu & Javier Cifuentes-Faura, 2022. "Forecasting National and Regional Youth Unemployment in Spain Using Google Trends," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 164(3), pages 1187-1216, December.
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    4. Veli Yılancı & Emel İslamoğlu & Sinem Yıldırımalp & Gökçe Candan, 2020. "The Relationship between Unemployment Rates and Renewable Energy Consumption: Evidence from Fourier ADL Cointegration Test," Alphanumeric Journal, Bahadir Fatih Yildirim, vol. 8(1), pages 17-28, June.
    5. Olufunmilayo T. Afolayan & Henry Okodua & Oluwatoyin Matthew & Romanus Osabohien, 2019. "Reducing Unemployment Malaise in Nigeria: The Role of Electricity Consumption and Human Capital Development," International Journal of Energy Economics and Policy, Econjournals, vol. 9(4), pages 63-73.
    6. Bilgili, Faik & Koçak, Emrah & Bulut, Ümit & Kuloğlu, Ayhan, 2017. "The impact of urbanization on energy intensity: Panel data evidence considering cross-sectional dependence and heterogeneity," Energy, Elsevier, vol. 133(C), pages 242-256.

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    More about this item

    Keywords

    Energy Consumption; Youth Unemployment; Panel Analysis; European Union;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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