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Energy and economic growth in the USA two decades later: Replication and reanalysis

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  • Leiva, Benjamin
  • Liu, Zhongyuan

Abstract

Over two decades ago, Stern (1993) published evidence in this journal of unidirectional Granger-causality running from GDP to a raw measure of energy use, from a weighted measure of energy use to GDP, and of other relations pertaining to labor and capital. In this paper we verify the original results and conduct a two-fold reanalysis: on one hand we revisit Granger-causality using the Toda and Yamamoto (TY) procedure to account for integrated series, and on the other we study super exogeneity to establish causal relations between the series. Our verification exercise confirms the original results, and with the TY procedure we achieve a positive reanalysis of the Granger-causality relations between GDP and energy. Super exogeneity shows that labor and capital cause GDP and energy use, and thus highlight the importance of correctly interpreting econometric procedures. These results enhance the reliability of the energy-GDP nexus literature.

Suggested Citation

  • Leiva, Benjamin & Liu, Zhongyuan, 2019. "Energy and economic growth in the USA two decades later: Replication and reanalysis," Energy Economics, Elsevier, vol. 82(C), pages 89-99.
    • Handle: RePEc:eee:eneeco:v:82:y:2019:i:c:p:89-99
    DOI: 10.1016/j.eneco.2018.02.002
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    Cited by:

    1. Rodríguez-Caballero, Carlos Vladimir, 2022. "Energy consumption and GDP: a panel data analysis with multi-level cross-sectional dependence," Econometrics and Statistics, Elsevier, vol. 23(C), pages 128-146.

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    More about this item

    Keywords

    Replication; Energy; GDP; Granger-causality; Toda and Yamamoto; Super exogeneity;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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