IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2018-04-34.html
   My bibliography  Save this article

Long Run Energy Demand and Its Determinants: A Panel Cointegration Analysis of the Association of Southeast Asian Nations-5

Author

Listed:
  • Sallahuddin Hassan

    (School of Economics, Finance and Banking, Universiti Utara Malaysia, Malaysia)

Abstract

Energy determinants continue to reinforce the sustained rise in energy demand over the coming years. Such concern has captured considerable attentions among the governments worldwide in the anticipation of its unabated rise to jeopardize a country s long term energy security. Specifically, this paper investigates the interplay between energy demand and its determinants notably world oil price, economic growth, population, urbanization and energy access in the ASEAN-5 over the 2000 2016 period. At the aggregated level, the long run results reveal that economic growth, energy access and urbanization have significant effects on energy demand. However, the results vary by the disaggregated fuel type, respectively. Therefore, energy conservation policy is the viable option in the ASEAN-5 going forward. Also, the policy makers are suggested to secure for reliable and affordable energy supplies with minimal environmental impacts, promote a sustainable development and socio-economic growth and enhance the quality of life.

Suggested Citation

  • Sallahuddin Hassan, 2018. "Long Run Energy Demand and Its Determinants: A Panel Cointegration Analysis of the Association of Southeast Asian Nations-5," International Journal of Energy Economics and Policy, Econjournals, vol. 8(4), pages 270-279.
  • Handle: RePEc:eco:journ2:2018-04-34
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijeep/article/download/6619/3849
    Download Restriction: no

    File URL: https://www.econjournals.com/index.php/ijeep/article/view/6619/3849
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Narayan, Paresh Kumar & Smyth, Russell, 2007. "A panel cointegration analysis of the demand for oil in the Middle East," Energy Policy, Elsevier, vol. 35(12), pages 6258-6265, December.
    2. Cosimo Magazzino, 2014. "A Panel VAR Approach of the Relationship among Economic Growth, CO2 Emissions, and Energy Use in the ASEAN-6 Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 4(4), pages 546-553.
    3. Pedroni, Peter, 2004. "Panel Cointegration: Asymptotic And Finite Sample Properties Of Pooled Time Series Tests With An Application To The Ppp Hypothesis," Econometric Theory, Cambridge University Press, vol. 20(3), pages 597-625, June.
    4. Karanfil, Fatih, 2009. "How many times again will we examine the energy-income nexus using a limited range of traditional econometric tools?," Energy Policy, Elsevier, vol. 37(4), pages 1191-1194, April.
    5. AfDB AfDB, 2013. "Millennium Development Goals (MDGs) Report 2013 - Executive Summary," MDG Report 471, African Development Bank.
    6. Michieka, Nyakundi & Fletcher, Jerald J., 2013. "Population Dynamics, Economic Growth and Energy Consumption in Kenya," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149016, Agricultural and Applied Economics Association.
    7. Azlina Abd. Aziz & Nik Hashim Nik Mustapha & Roslina Ismail, 2013. "Factors Affecting Energy Demand in Developing Countries: A Dynamic Panel Analysis," International Journal of Energy Economics and Policy, Econjournals, vol. 3(Special), pages 1-6.
    8. Dermot Gately & Hiliard G. Huntington, 2002. "The Asymmetric Effects of Changes in Price and Income on Energy and Oil Demand," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 19-55.
    9. Peter Pedroni, 2000. "Fully Modified OLS for Heterogeneous Cointegrated Panels," Department of Economics Working Papers 2000-03, Department of Economics, Williams College.
    10. Im, Kyung So & Pesaran, M. Hashem & Shin, Yongcheol, 2003. "Testing for unit roots in heterogeneous panels," Journal of Econometrics, Elsevier, vol. 115(1), pages 53-74, July.
    11. Bhattacharyya, Subhes C., 2006. "Energy access problem of the poor in India: Is rural electrification a remedy?," Energy Policy, Elsevier, vol. 34(18), pages 3387-3397, December.
    12. Varinder Jain, 2011. "Challenge of Economic Growth and the Concern for Energy Security: A Comparative Analysis of South Asia and South-East Asia," Millennial Asia, , vol. 2(2), pages 207-227, July.
    13. Yash P. Mehra & Jon D. Petersen, 2005. "Oil prices and consumer spending," Economic Quarterly, Federal Reserve Bank of Richmond, vol. 91(Sum), pages 51-70.
    14. Sahbi FARHANI & Jaleleddine BEN REJEB, 2015. "Link between Economic Growth and Energy Consumption in Over 90 Countries," Working Papers 2015-614, Department of Research, Ipag Business School.
    15. Ahmed Al-Azzam & David Hawdon, 1999. "Estimating the Demand for Energy in Jordan: A Stock-Watson Dynamic OLS (DOLS) Approach," Surrey Energy Economics Centre (SEEC), School of Economics Discussion Papers (SEEDS) 97, Surrey Energy Economics Centre (SEEC), School of Economics, University of Surrey.
    16. Engle, Robert & Granger, Clive, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 39(3), pages 106-135.
    17. Jain, Varinder, 2011. "Challenge of Economic Growth and the Concern for Energy Security: A Comparative Analysis of South and South-East Asia," MPRA Paper 29006, University Library of Munich, Germany.
    18. Arzu Tay Bayramoglu & Deniz Sukruoglu, 2016. "Non-Energy Import Demand Function in Turkey: New Evidence," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 6(12), pages 750-761, December.
    19. Pachauri, Shonali & Jiang, Leiwen, 2008. "The household energy transition in India and China," Energy Policy, Elsevier, vol. 36(11), pages 4022-4035, November.
    20. Hamilton, James D, 1983. "Oil and the Macroeconomy since World War II," Journal of Political Economy, University of Chicago Press, vol. 91(2), pages 228-248, April.
    21. Leach, Gerald, 1992. "The energy transition," Energy Policy, Elsevier, vol. 20(2), pages 116-123, February.
    22. Atef Saad Alshehry & Mounir Belloumi, 2014. "Investigating the Causal Relationship between Fossil Fuels Consumption and Economic Growth at Aggregate and Disaggregate Levels in Saudi Arabia," International Journal of Energy Economics and Policy, Econjournals, vol. 4(4), pages 531-545.
    23. Arzu Tay Bayramoglu & Deniz Sukruoglu, 2016. "Non-Energy Import Demand Function in Turkey: New Evidence," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 6(12), pages 750-761.
    24. Levin, Andrew & Lin, Chien-Fu & James Chu, Chia-Shang, 2002. "Unit root tests in panel data: asymptotic and finite-sample properties," Journal of Econometrics, Elsevier, vol. 108(1), pages 1-24, May.
    25. Poumanyvong, Phetkeo & Kaneko, Shinji, 2010. "Does urbanization lead to less energy use and lower CO2 emissions? A cross-country analysis," Ecological Economics, Elsevier, vol. 70(2), pages 434-444, December.
    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. Abdulrahman M. Alsobhi, 2023. "Using Artificial Neural Networks to Recognize the Determinants of Energy Consumption in Saudi Arabia," International Journal of Energy Economics and Policy, Econjournals, vol. 13(3), pages 489-493, May.
    2. Khairulnadzmi Jamaluddin & Sharifah Rafidah Wan Alwi & Khaidzir Hamzah & Jiří Jaromír Klemeš, 2020. "A Numerical Pinch Analysis Methodology for Optimal Sizing of a Centralized Trigeneration System with Variable Energy Demands," Energies, MDPI, vol. 13(8), pages 1-35, April.
    3. Kabiru Saidu Musa & Rabiu Maijama’a, 2020. "Economic Growth, Energy Consumption and Environmental Pollution in Nigeria: Evidence from ARDL Approach," Energy Economics Letters, Asian Economic and Social Society, vol. 7(2), pages 61-73, December.

    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. Gately, Dermot & Al-Yousef, Nourah & Al-Sheikh, Hamad M.H., 2013. "The rapid growth of OPEC′s domestic oil consumption," Energy Policy, Elsevier, vol. 62(C), pages 844-859.
    2. 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.
    3. Sadorsky, Perry, 2009. "Renewable energy consumption and income in emerging economies," Energy Policy, Elsevier, vol. 37(10), pages 4021-4028, October.
    4. Pradhan, Rudra P. & Arvin, Mak B. & Ghoshray, Atanu, 2015. "The dynamics of economic growth, oil prices, stock market depth, and other macroeconomic variables: Evidence from the G-20 countries," International Review of Financial Analysis, Elsevier, vol. 39(C), pages 84-95.
    5. 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.
    6. Bernstein, Ronald & Madlener, Reinhard, 2011. "Responsiveness of Residential Electricity Demand in OECD Countries: A Panel Cointegation and Causality Analysis," FCN Working Papers 8/2011, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
    7. Apergis, Nicholas & Payne, James E., 2011. "The renewable energy consumption-growth nexus in Central America," Applied Energy, Elsevier, vol. 88(1), pages 343-347, January.
    8. Hamit-Haggar, Mahamat, 2012. "Greenhouse gas emissions, energy consumption and economic growth: A panel cointegration analysis from Canadian industrial sector perspective," Energy Economics, Elsevier, vol. 34(1), pages 358-364.
    9. Gritli, Mohamed Ilyes & Charfi, Fatma Marrakchi, 2023. "The determinants of oil consumption in Tunisia: Fresh evidence from NARDL approach and asymmetric causality test," Energy, Elsevier, vol. 284(C).
    10. Hakimi, Abdelaziz & Hamdi, Helmi, 2016. "Trade liberalization, FDI inflows, environmental quality and economic growth: A comparative analysis between Tunisia and Morocco," Renewable and Sustainable Energy Reviews, Elsevier, vol. 58(C), pages 1445-1456.
    11. Betty C. Daniel & Christos Shiamptanis, 2008. "Fiscal policy in the European Monetary Union," International Finance Discussion Papers 961, Board of Governors of the Federal Reserve System (U.S.).
    12. Allauddin Kakar & Anwar Khan & Akbar Khan, 2024. "Analyzing the Role of Governance, ICT, and Urbanization on Environment in South Asian Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 2682-2703, March.
    13. Sadorsky, Perry, 2009. "Renewable energy consumption, CO2 emissions and oil prices in the G7 countries," Energy Economics, Elsevier, vol. 31(3), pages 456-462, May.
    14. Samir, Saidi & Shahbaz, Muhammad & Akhtar, Pervaiz, 2018. "The Long-Run Relationship between Transport Energy Consumption and Transport Infrastructure on Economic Growth in MENA Countries," MPRA Paper 85037, University Library of Munich, Germany, revised 06 Mar 2018.
    15. Brantley Liddle, 2013. "The Energy, Economic Growth, Urbanization Nexus Across Development: Evidence from Heterogeneous Panel Estimates Robust to Cross-Sectional Dependence," The Energy Journal, , vol. 34(2), pages 223-244, April.
    16. Rudra P. Pradhan & Mak B. Arvin & John H. Hall & Sara E. Bennett, 2018. "Mobile telephony, economic growth, financial development, foreign direct investment, and imports of ICT goods: the case of the G-20 countries," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 45(2), pages 279-310, June.
    17. Scott, K. Rebecca, 2011. "Demand and Price Volatility: Rational Habits in International Gasoline Demand," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt2q87432b, Department of Agricultural & Resource Economics, UC Berkeley.
    18. Ciarreta Antuñano, Aitor & Zárraga Alonso, Ainhoa, 2008. "Economic Growth and Electricity Consumption in 12 European Countries: A Causality Analysis Using Panel Data," BILTOKI 1134-8984, Universidad del País Vasco - Departamento de Economía Aplicada III (Econometría y Estadística).
    19. Wang, Qiang & Lin, Jian & Zhou, Kan & Fan, Jie & Kwan, Mei-Po, 2020. "Does urbanization lead to less residential energy consumption? A comparative study of 136 countries," Energy, Elsevier, vol. 202(C).
    20. Jin, Taeyoung & Kim, Jinsoo, 2018. "What is better for mitigating carbon emissions – Renewable energy or nuclear energy? A panel data analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 91(C), pages 464-471.

    More about this item

    Keywords

    ASEAN-5; energy conservation; energy demand; energy security;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • 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:journ2:2018-04-34. 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.