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Does energy consumption cause economic growth?: Evidence from a systematic study of over 100 countries

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  • Chontanawat, Jaruwan
  • Hunt, Lester C.
  • Pierse, Richard

Abstract

Energy arguably plays a vital role in economic development. Hence many studies have attempted to test for causality between energy and economic growth; however, no consensus has emerged. This paper, therefore, tests for causality between energy and GDP using a consistent data set and methodology for over 100 countries. Causality from energy to GDP is found to be more prevalent in the developed OECD countries compared to the developing non-OECD countries; implying that a policy to reduce energy consumption aimed at reducing emissions is likely to have greater impact on the GDP of the developed rather than the developing world.

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  • Chontanawat, Jaruwan & Hunt, Lester C. & Pierse, Richard, 2008. "Does energy consumption cause economic growth?: Evidence from a systematic study of over 100 countries," Journal of Policy Modeling, Elsevier, vol. 30(2), pages 209-220.
    • Handle: RePEc:eee:jpolmo:v:30:y:2008:i:2:p:209-220
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