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Growth and energy nexus in Europe revisited: Evidence from a fixed effects political economy model

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  • Menegaki, Angeliki N.
  • Ozturk, Ilhan

Abstract

This is an empirical study on the causal relationship between economic growth and energy for 26 European countries in a multivariate panel framework over the period 1975–2009 using a two-way fixed effects model and including greenhouse gas emissions, capital, fossil energy consumption, Herfindahl index (political competition) and number of years the government chief executive stays in office (political stability) as independent variables in the model. Empirical results confirm bidirectional causality between growth and political stability, capital and political stability, capital and fossil energy consumption. Whether political stability favors the implementation of growth or leads to corruption demands further research.

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  • Menegaki, Angeliki N. & Ozturk, Ilhan, 2013. "Growth and energy nexus in Europe revisited: Evidence from a fixed effects political economy model," Energy Policy, Elsevier, vol. 61(C), pages 881-887.
  • Handle: RePEc:eee:enepol:v:61:y:2013:i:c:p:881-887
    DOI: 10.1016/j.enpol.2013.06.076
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    9. Okyay Uçan & Ebru Arýcýoðlu & Fatih Yücel, 2014. "Energy Consumption and Economic Growth Nexus: Evidence from Developed Countries in Europe," International Journal of Energy Economics and Policy, Econjournals, vol. 4(3), pages 411-419.
    10. Śmiech, Sławomir & Papież, Monika, 2014. "Energy consumption and economic growth in the light of meeting the targets of energy policy in the EU: The bootstrap panel Granger causality approach," Energy Policy, Elsevier, vol. 71(C), pages 118-129.
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    12. Menegaki, Angeliki N. & Tsagarakis, Konstantinos P., 2015. "Rich enough to go renewable, but too early to leave fossil energy?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 41(C), pages 1465-1477.

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    Energy; Growth; Political stability;

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