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What if energy time series are not independent? Implications for energy-GDP causality analysis

  • Bruns, Stephan B.
  • Gross, Christian

Time series of electricity, petroleum products, and renewables are found to be highly correlated with total energy consumption. Applying this insight to the huge literature on energy-GDP causality explains that the results of total energy-GDP causality tests frequently coincide with the results of energy type-GDP tests. Using the test by Toda–Yamamoto in combination with a cointegration-based testing approach, we detect such cases of concordance for 92% of the countries in our sample of 65 countries. We infer that drawing specific economic conclusions with regard to single types of energy from bivariate causality analysis is difficult.

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Article provided by Elsevier in its journal Energy Economics.

Volume (Year): 40 (2013)
Issue (Month): C ()
Pages: 753-759

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Handle: RePEc:eee:eneeco:v:40:y:2013:i:c:p:753-759
Contact details of provider: Web page: http://www.elsevier.com/locate/eneco

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