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Dynamic Effects of Energy Consumption on Economic Growth in an Emerging Economy

Author

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  • Jaka Sriyana

    (Department of Economics, Islamic University of Indonesia, Indonesia.)

Abstract

The main objective of this research is to investigate the dynamic effects of energy consumption on economic growth in the Indonesian context. Based on the annual data of 1990-2017, the empirical ARDL model presents significant effects of energy use, electric power and renewable energy consumption on economic growth. The analysis using error correction model presents the long-run effect of energy use on economic growth. In the short-run, the electric power consumption and labor participation rate have a positive effect on economic growth. The variable of energy use has symmetric effects both in long and short-term periods. The electric power and renewable energy consumption have asymmetric effects in the long-and short-run models. This paper highlights that energy consumption and labor force are the main sources of economic growth in this country. It implies that the research findings are in line with the neoclassical theory.

Suggested Citation

  • Jaka Sriyana, 2019. "Dynamic Effects of Energy Consumption on Economic Growth in an Emerging Economy," International Journal of Energy Economics and Policy, Econjournals, vol. 9(4), pages 283-290.
    • Handle: RePEc:eco:journ2:2019-04-35
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    References listed on IDEAS

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    Cited by:

    1. Hlalefang Khobai & Sanderson Abel & Pierre Le Roux, 2021. "A Review of the Nexus between Energy Consumption and Economic Growth in the BRICS Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 11(3), pages 424-431.
    2. Karen Fernandes & Y. V. Reddy, 2020. "Energy Consumption and Economic Growth in Newly Industrialised Countries of Asia," International Journal of Energy Economics and Policy, Econjournals, vol. 10(4), pages 384-391.
    3. Nuno Carlos Leitão & Daniel Balsalobre Lorente, 2020. "The Linkage between Economic Growth, Renewable Energy, Tourism, CO 2 Emissions, and International Trade: The Evidence for the European Union," Energies, MDPI, vol. 13(18), pages 1-16, September.
    4. Ranti Darwin & Dyah Wulan Sari & Unggul Heriqbaldi, 2022. "Dynamic Linkages between Energy Consumption, Foreign Direct Investment, and Economic Growth: A New Insight from Developing Countries in Asia," International Journal of Energy Economics and Policy, Econjournals, vol. 12(6), pages 30-36, November.
    5. Nuno Carlos Leitão, 2021. "The Effects of Corruption, Renewable Energy, Trade and CO 2 Emissions," Economies, MDPI, vol. 9(2), pages 1-19, April.

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    More about this item

    Keywords

    Economic Economic Growth; Energy Use; Renewable Energy;
    All these keywords.

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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