IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2017-03-25.html
   My bibliography  Save this article

On the Dynamics of Energy-growth Nexus: Evidence from a World Divided into Four Regions

Author

Listed:
  • Lu s Miguel Marques

    (NECE-UBI, University of Beira Interior, Rua Marqu s d vila e Bolama, 6201-001 Covilh , Portugal,)

  • Jos Alberto Fuinhas

    (NECE-UBI, University of Beira Interior, Rua Marqu s d vila e Bolama, 6201-001 Covilh , Portugal,)

  • Ant nio Cardoso Marques

    (NECE-UBI, University of Beira Interior, Rua Marqu s d vila e Bolama, 6201-001 Covilh , Portugal.)

Abstract

This paper provides a comparative analysis of the energy-growth nexus in different world regions by using an identical methodology for each one, thereby avoiding the usual problem of results varying due to the use of differing methodologies. To access data covering the entire world, four regions were used: (i) America (North and South); (ii) Europe and Central Asia; (iii) Asia Pacific; and (iv) Africa and the Middle East. Annual aggregated time series from 1968 to 2013, and an auto-regressive distributed lag approach were used. The results suggest that, in the long-run: (a) The feedback hypothesis is present in America and Asia Pacific; (b) the conservation hypothesis was found in Europe and Central Asia and in Africa and the Middle East. Moreover, the results suggest that historical events, such as the oil shocks of 1970 and 1980 and the 2008 financial crisis, have heterogenous impacts across the world.

Suggested Citation

  • Lu s Miguel Marques & Jos Alberto Fuinhas & Ant nio Cardoso Marques, 2017. "On the Dynamics of Energy-growth Nexus: Evidence from a World Divided into Four Regions," International Journal of Energy Economics and Policy, Econjournals, vol. 7(3), pages 208-215.
    • Handle: RePEc:eco:journ2:2017-03-25
    as

    Download full text from publisher

    File URL: http://www.econjournals.com/index.php/ijeep/article/download/4591/3012
    Download Restriction: no
    File URL: http://www.econjournals.com/index.php/ijeep/article/view/4591/3012
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Śmiech, Sławomir & Papież, Monika, 2014. "Energy consumption and economic growth in the light of meeting the targets of energy policy in the EU: The bootstrap panel Granger causality approach," Energy Policy, Elsevier, vol. 71(C), pages 118-129.
    2. Granger, C. W. J., 1988. "Causality, cointegration, and control," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 551-559.
    3. Aynur Pala, 2016. "Which Energy-Growth Hypothesis is Valid in OECD Countries? Evidence from Panel Granger Causality," International Journal of Energy Economics and Policy, Econjournals, vol. 6(1), pages 28-34.
    4. Ozturk, Ilhan & Aslan, Alper & Kalyoncu, Huseyin, 2010. "Energy consumption and economic growth relationship: Evidence from panel data for low and middle income countries," Energy Policy, Elsevier, vol. 38(8), pages 4422-4428, August.
    5. Ciarreta, A. & Zarraga, A., 2010. "Economic growth-electricity consumption causality in 12 European countries: A dynamic panel data approach," Energy Policy, Elsevier, vol. 38(7), pages 3790-3796, July.
    6. Damette, Olivier & Seghir, Majda, 2013. "Energy as a driver of growth in oil exporting countries?," Energy Economics, Elsevier, vol. 37(C), pages 193-199.
    7. Lee, Chien-Chiang & Chang, Chun-Ping, 2005. "Structural breaks, energy consumption, and economic growth revisited: Evidence from Taiwan," Energy Economics, Elsevier, vol. 27(6), pages 857-872, November.
    8. Jamal BOUOIYOUR & Refk SELMI & Ilhan OZTURK, 2014. "The Nexus between Electricity Consumption and Economic Growth: New Insights from Meta-Analysis," International Journal of Energy Economics and Policy, Econjournals, vol. 4(4), pages 621-635.
    9. Omri, Anis, 2013. "CO2 emissions, energy consumption and economic growth nexus in MENA countries: Evidence from simultaneous equations models," Energy Economics, Elsevier, vol. 40(C), pages 657-664.
    10. Eggoh, Jude C. & Bangake, Chrysost & Rault, Christophe, 2011. "Energy consumption and economic growth revisited in African countries," Energy Policy, Elsevier, vol. 39(11), pages 7408-7421.
    11. Al-mulali, Usama & Fereidouni, Hassan Gholipour & Lee, Janice Ym & Sab, Che Normee Binti Che, 2013. "Examining the bi-directional long run relationship between renewable energy consumption and GDP growth," Renewable and Sustainable Energy Reviews, Elsevier, vol. 22(C), pages 209-222.
    12. José Fuinhas & António Marques & Alcino Couto, 2015. "Oil rents and economic growth in oil producing countries: evidence from a macro panel," Economic Change and Restructuring, Springer, vol. 48(3), pages 257-279, November.
    13. Cheng, Benjamin S. & Lai, Tin Wei, 1997. "An investigation of co-integration and causality between energy consumption and economic activity in Taiwan," Energy Economics, Elsevier, vol. 19(4), pages 435-444, October.
    14. Fang, Zheng & Chang, Youngho, 2016. "Energy, human capital and economic growth in Asia Pacific countries — Evidence from a panel cointegration and causality analysis," Energy Economics, Elsevier, vol. 56(C), pages 177-184.
    15. Sadorsky, Perry, 2012. "Energy consumption, output and trade in South America," Energy Economics, Elsevier, vol. 34(2), pages 476-488.
    16. Jos Alberto Fuinhas & Ant nio Cardoso Marques & Alcino Pinto Couto, 2015. "Oil-Growth Nexus in Oil Producing Countries: Macro Panel Evidence," International Journal of Energy Economics and Policy, Econjournals, vol. 5(1), pages 148-163.
    17. Yu, Eden S. H. & Hwang, Been-Kwei, 1984. "The relationship between energy and GNP : Further results," Energy Economics, Elsevier, vol. 6(3), pages 186-190, July.
    18. Adams, Samuel & Klobodu, Edem Kwame Mensah & Opoku, Eric Evans Osei, 2016. "Energy consumption, political regime and economic growth in sub-Saharan Africa," Energy Policy, Elsevier, vol. 96(C), pages 36-44.
    19. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
    20. Perron, Pierre, 1989. "The Great Crash, the Oil Price Shock, and the Unit Root Hypothesis," Econometrica, Econometric Society, vol. 57(6), pages 1361-1401, November.
    21. Marques, António Cardoso & Fuinhas, José Alberto & Nunes, André Roque, 2016. "Electricity generation mix and economic growth: What role is being played by nuclear sources and carbon dioxide emissions in France?," Energy Policy, Elsevier, vol. 92(C), pages 7-19.
    22. Ocal, Oguz & Aslan, Alper, 2013. "Renewable energy consumption–economic growth nexus in Turkey," Renewable and Sustainable Energy Reviews, Elsevier, vol. 28(C), pages 494-499.
    23. Narayan, Seema, 2016. "Predictability within the energy consumption–economic growth nexus: Some evidence from income and regional groups," Economic Modelling, Elsevier, vol. 54(C), pages 515-521.
    24. Hamit-Haggar, Mahamat, 2016. "Clean energy-growth nexus in sub-Saharan Africa: Evidence from cross-sectionally dependent heterogeneous panel with structural breaks," Renewable and Sustainable Energy Reviews, Elsevier, vol. 57(C), pages 1237-1244.
    25. Jammazi, Rania & Aloui, Chaker, 2015. "On the interplay between energy consumption, economic growth and CO2 emission nexus in the GCC countries: A comparative analysis through wavelet approaches," Renewable and Sustainable Energy Reviews, Elsevier, vol. 51(C), pages 1737-1751.
    26. Pao, Hsiao-Tien & Fu, Hsin-Chia, 2013. "Renewable energy, non-renewable energy and economic growth in Brazil," Renewable and Sustainable Energy Reviews, Elsevier, vol. 25(C), pages 381-392.
    27. Ozcan, Burcu, 2013. "The nexus between carbon emissions, energy consumption and economic growth in Middle East countries: A panel data analysis," Energy Policy, Elsevier, vol. 62(C), pages 1138-1147.
    28. Ozturk, Ilhan, 2010. "A literature survey on energy-growth nexus," Energy Policy, Elsevier, vol. 38(1), pages 340-349, January.
    29. Caraiani, Chirața & Lungu, Camelia I. & Dascălu, Cornelia, 2015. "Energy consumption and GDP causality: A three-step analysis for emerging European countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 44(C), pages 198-210.
    30. Mahamat Hamit-Haggar, 2016. "Clean energy-growth nexus in sub-Saharan Africa: Evidence from cross-sectionally dependent heterogeneous panel with structural breaks," Post-Print halshs-01370190, HAL.
    31. Jahangir Alam, Mohammad & Ara Begum, Ismat & Buysse, Jeroen & Van Huylenbroeck, Guido, 2012. "Energy consumption, carbon emissions and economic growth nexus in Bangladesh: Cointegration and dynamic causality analysis," Energy Policy, Elsevier, vol. 45(C), pages 217-225.
    32. Yıldırım, Ertugrul & Sukruoglu, Deniz & Aslan, Alper, 2014. "Energy consumption and economic growth in the next 11 countries: The bootstrapped autoregressive metric causality approach," Energy Economics, Elsevier, vol. 44(C), pages 14-21.
    33. Masih, Abul M. M. & Masih, Rumi, 1996. "Energy consumption, real income and temporal causality: results from a multi-country study based on cointegration and error-correction modelling techniques," Energy Economics, Elsevier, vol. 18(3), pages 165-183, July.
    34. Anthony N. Rezitis & Shaikh Mostak Ahammad, 2015. "The Relationship between Energy Consumption and Economic Growth in South and Southeast Asian Countries: A Panel Vector Autoregression Approach and Causality Analysis," International Journal of Energy Economics and Policy, Econjournals, vol. 5(3), pages 704-715.
    35. Glasure, Yong U. & Lee, Aie-Rie, 1998. "Cointegration, error-correction, and the relationship between GDP and energy: The case of South Korea and Singapore," Resource and Energy Economics, Elsevier, vol. 20(1), pages 17-25, March.
    36. Chaido Dritsaki & Melina Dritsaki, 2014. "Causal Relationship between Energy Consumption, Economic Growth and CO2 Emissions: A Dynamic Panel Data Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 4(2), pages 125-136.
    37. Jacques Loesse ESSO, 2010. "The Energy Consumption-Growth Nexus in Seven Sub-Saharan African Countries," Economics Bulletin, AccessEcon, vol. 30(2), pages 1191-1209.
    38. Sadorsky, Perry, 2011. "Trade and energy consumption in the Middle East," Energy Economics, Elsevier, vol. 33(5), pages 739-749, September.
    39. Al-Iriani, Mahmoud A., 2006. "Energy-GDP relationship revisited: An example from GCC countries using panel causality," Energy Policy, Elsevier, vol. 34(17), pages 3342-3350, November.
    40. 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.
    41. Akinlo, A.E., 2008. "Energy consumption and economic growth: Evidence from 11 Sub-Sahara African countries," Energy Economics, Elsevier, vol. 30(5), pages 2391-2400, September.
    42. Mohammadi, Hassan & Parvaresh, Shahrokh, 2014. "Energy consumption and output: Evidence from a panel of 14 oil-exporting countries," Energy Economics, Elsevier, vol. 41(C), pages 41-46.
    43. Oh, Wankeun & Lee, Kihoon, 2004. "Causal relationship between energy consumption and GDP revisited: the case of Korea 1970-1999," Energy Economics, Elsevier, vol. 26(1), pages 51-59, January.
    44. Zhi-Yong Han & Ying Fan & Yi-Ming Wei, 2004. "Study on the cointegration and causality between GDP and energy consumption in China," International Journal of Global Energy Issues, Inderscience Enterprises Ltd, vol. 22(2/3/4), pages 225-232.
    45. Ozturk, Ilhan & Acaravci, Ali, 2011. "Electricity consumption and real GDP causality nexus: Evidence from ARDL bounds testing approach for 11 MENA countries," Applied Energy, Elsevier, vol. 88(8), pages 2885-2892, August.
    46. Al Aali-Bujari & Francisco Venegas-Mart nez & Alfredo Omar Palafox-Roca, 2017. "Impact of Energy Consumption on Economic Growth in Major Organization for Economic Cooperation and Development Economies (1977-2014): A Panel Data Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 7(2), pages 18-25.
    47. Borozan, Djula, 2013. "Exploring the relationship between energy consumption and GDP: Evidence from Croatia," Energy Policy, Elsevier, vol. 59(C), pages 373-381.
    48. Sims, Christopher A, 1972. "Money, Income, and Causality," American Economic Review, American Economic Association, vol. 62(4), pages 540-552, September.
    49. Hazuki Ishida, 2012. "Causal relationship between fossil fuel consumption and economic growth in the world," International Journal of Global Energy Issues, Inderscience Enterprises Ltd, vol. 35(6), pages 427-440.
    50. Fuinhas, José Alberto & Marques, António Cardoso, 2012. "Energy consumption and economic growth nexus in Portugal, Italy, Greece, Spain and Turkey: An ARDL bounds test approach (1965–2009)," Energy Economics, Elsevier, vol. 34(2), pages 511-517.
    51. Mohammadi, Hassan & Amin, Modhurima Dey, 2015. "Long-run relation and short-run dynamics in energy consumption–output relationship: International evidence from country panels with different growth rates," Energy Economics, Elsevier, vol. 52(PA), pages 118-126.
    52. Nasreen, Samia & Anwar, Sofia, 2014. "Causal relationship between trade openness, economic growth and energy consumption: A panel data analysis of Asian countries," Energy Policy, Elsevier, vol. 69(C), pages 82-91.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Luís Miguel Marques & José Alberto Fuinhas & António Cardoso Marques, 2021. "China’s Effect on World Energy-Growth Nexus: Spillovers Evidence from Financial Development and CO 2 Emissions," Economies, MDPI, vol. 9(4), pages 1-24, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tiba, Sofien & Omri, Anis, 2017. "Literature survey on the relationships between energy, environment and economic growth," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 1129-1146.
    2. Sofien, Tiba & Omri, Anis, 2016. "Literature survey on the relationships between energy variables, environment and economic growth," MPRA Paper 82555, University Library of Munich, Germany, revised 14 Sep 2016.
    3. Farzana Sharmin & Mohammed Robayet Khan & Mohammed Robayet Khan, 2016. "A Causal Relationship between Energy Consumption, Energy Prices and Economic Growth in Africa," International Journal of Energy Economics and Policy, Econjournals, vol. 6(3), pages 477-494.
    4. Bilgili, Faik & Kuşkaya, Sevda & Toğuç, Nurhan & Muğaloğlu, Erhan & Koçak, Emrah & Bulut, Ümit & Bağlıtaş, H. Hilal, 2019. "A revisited renewable consumption-growth nexus: A continuous wavelet approach through disaggregated data," Renewable and Sustainable Energy Reviews, Elsevier, vol. 107(C), pages 1-19.
    5. Hasanov, Fakhri & Bulut, Cihan & Suleymanov, Elchin, 2017. "Review of energy-growth nexus: A panel analysis for ten Eurasian oil exporting countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 73(C), pages 369-386.
    6. Camarero, Mariam & Forte, Anabel & Garcia-Donato, Gonzalo & Mendoza, Yurena & Ordoñez, Javier, 2015. "Variable selection in the analysis of energy consumption–growth nexus," Energy Economics, Elsevier, vol. 52(PA), pages 207-216.
    7. Nour Wehbe & Bassam Assaf & Salem Darwich, 2018. "Étude de causalité entre la consommation d’électricité et la croissance économique au Liban," Post-Print hal-01944291, HAL.
    8. Destek, Mehmet Akif, 2016. "Natural gas consumption and economic growth: Panel evidence from OECD countries," Energy, Elsevier, vol. 114(C), pages 1007-1015.
    9. Shahbaz, Muhammad & Benkraiem, Ramzi & Miloudi, Anthony & Lahiani, Amine, 2017. "Production function with electricity consumption and policy implications in Portugal," Energy Policy, Elsevier, vol. 110(C), pages 588-599.
    10. Koščak Kolin, Sonja & Karasalihović Sedlar, Daria & Kurevija, Tomislav, 2021. "Relationship between electricity and economic growth for long-term periods: New possibilities for energy prediction," Energy, Elsevier, vol. 228(C).
    11. Mohammed AlKhars & Fazlul Miah & Hassan Qudrat-Ullah & Aymen Kayal, 2020. "A Systematic Review of the Relationship Between Energy Consumption and Economic Growth in GCC Countries," Sustainability, MDPI, vol. 12(9), pages 1-43, May.
    12. Abbas Ali Chandio & Yuansheng Jiang & Jam Ghulam Murtaza Sahito & Fayyaz Ahmad, 2019. "Empirical Insights into the Long-Run Linkage between Households Energy Consumption and Economic Growth: Macro-Level Empirical Evidence from Pakistan," Sustainability, MDPI, vol. 11(22), pages 1-17, November.
    13. Zheng Fang & Jiang Yu, 2020. "The role of human capital in energy-growth nexus: an international evidence," Empirical Economics, Springer, vol. 58(3), pages 1225-1247, March.
    14. Ozturk, Ilhan, 2010. "A literature survey on energy-growth nexus," Energy Policy, Elsevier, vol. 38(1), pages 340-349, January.
    15. Rashid, Abdul & Kandemir, Ӧzge, 2016. "Variations in energy use and output growth dynamics: An assessment for intertemporal and contemporaneous relationship," Energy, Elsevier, vol. 102(C), pages 388-396.
    16. Eyup DOGAN, 2014. "Energy Consumption and Economic Growth: Evidence from Low-Income Countries in Sub-Saharan Africa," International Journal of Energy Economics and Policy, Econjournals, vol. 4(2), pages 154-162.
    17. Jalil, Abdul, 2014. "Energy–growth conundrum in energy exporting and importing countries: Evidence from heterogeneous panel methods robust to cross-sectional dependence," Energy Economics, Elsevier, vol. 44(C), pages 314-324.
    18. Villanthenkodath, Muhammed Ashiq & Mahalik, Mantu Kumar, 2021. "Does economic growth respond to electricity consumption asymmetrically in Bangladesh? The implication for environmental sustainability," Energy, Elsevier, vol. 233(C).
    19. Shahbaz, Muhammad & Hoang, Thi Hong Van & Mahalik, Mantu Kumar & Roubaud, David, 2017. "Energy consumption, financial development and economic growth in India: New evidence from a nonlinear and asymmetric analysis," Energy Economics, Elsevier, vol. 63(C), pages 199-212.
    20. Omri, Anis, 2014. "An international literature survey on energy-economic growth nexus: Evidence from country-specific studies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 38(C), pages 951-959.

    More about this item

    Keywords

    World Energy-growth Nexus; Auto-regressive Distributed Lag Bounds Test; America; Europe and Central Asia; Asia Pacific; Africa and Middle East;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • E03 - Macroeconomics and Monetary Economics - - General - - - Behavioral Macroeconomics
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ2:2017-03-25. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.