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The Effect of Financial Development on Energy Consumption: Evidence from Russia

Author

Listed:
  • Shahriyar Mukhtarov

    (Baku Engineering University, Baku, Azerbaijan,)

  • R dvan Karacan

    (Kocaeli University, Kocaeli, Turkey,)

  • Fuzuli Aliyev

    (ADA University, Baku, Azerbaijan,)

  • Vuqar Ismayilov

    (Azerbaijan Technology University, Ganja, Azerbaijan.)

Abstract

This paper explores the effect of financial development, economic growth, and energy prices represented by consumer price index (CPI) on energy consumption in Russia by performing VECM, CCR, DOLS and FMOLS analyses to the annual data from 1995 to 2019. The findings of this empirical analysis reveal that financial development and economic growth have positive impact on energy consumption in Russia. Furthermore, the effect of energy prices expressed by CPI is revealed to be negative, which is consistent with the theory and expectations in practice. Based on the findings of this study, the nexus and impacts of financial development on energy consumption are discussed, as well as plausible explanations and policy implications.

Suggested Citation

  • Shahriyar Mukhtarov & R dvan Karacan & Fuzuli Aliyev & Vuqar Ismayilov, 2022. "The Effect of Financial Development on Energy Consumption: Evidence from Russia," International Journal of Energy Economics and Policy, Econjournals, vol. 12(1), pages 243-249.
    • Handle: RePEc:eco:journ2:2022-01-30
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    3. Shahriyar Mukhtarov & Fuzuli Aliyev & Javid Aliyev & Richard Ajayi, 2022. "Renewable Energy Consumption and Carbon Emissions: Evidence from an Oil-Rich Economy," Sustainability, MDPI, vol. 15(1), pages 1-12, December.

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    More about this item

    Keywords

    Economic Growth; Energy Consumption; Energy Prices; Financial Development; Russia; VECM;
    All these keywords.

    JEL classification:

    • G00 - Financial Economics - - General - - - General
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • P34 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Finance
    • P18 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Energy; Environment
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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