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Primary energy consumption and economic growth:the case of Greece

Author

Listed:
  • Anna Triantafyllidou

    (International Hellenic University, Greece)

  • Persefoni Polychronidou

    (International Hellenic University, Greece)

  • Ioannis Mantzaris

    (International Hellenic University, Greece)

Abstract

This paper examines the relationship between primary energy consumption and economic growth in Greece for the period 1965-2019 by using annual data. The main objective of this study is to investigate whether there is a causal relationship between economic growth and energy consumption. In terms of econometric specificity, ordinary least squares regression (OLS) is used to determine the model in the first step, while the vector self-regulating model (VAR) and the Wald test are used to detect causality. The study differs from the literature in terms of examining the individual energy sources. Total primary energy consumption in Greece is examined in relation to economic growth and individual energy sources separately. According to the results, primary energy consumption in Greece has a big impact on economic growth. The energy derived from non-renewable energy sources has the highest consumption rates. Causality tests show that there is a causal relationship between wind energy consumption and the GDP per capita while causality is observed from the GDP per capita to oil, coal, solar and hydropower consumption.

Suggested Citation

  • Anna Triantafyllidou & Persefoni Polychronidou & Ioannis Mantzaris, 2023. "Primary energy consumption and economic growth:the case of Greece," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 14, pages 108-132, December.
    • Handle: RePEc:jes:journl:y:2023:v:14:p:108-132
    DOI: https://doi.org/10.47743/ejes-2023-0205
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    References listed on IDEAS

    as
    1. Andreas Georgantopoulos, 2012. "Electricity Consumption and Economic Growth: Analysis and Forecasts using VAR/VEC Approach for Greece with Capital Formation," International Journal of Energy Economics and Policy, Econjournals, vol. 2(4), pages 263-278.
    2. Huang, Bwo-Nung & Hwang, M.J. & Yang, C.W., 2008. "Causal relationship between energy consumption and GDP growth revisited: A dynamic panel data approach," Ecological Economics, Elsevier, vol. 67(1), pages 41-54, August.
    3. Fuinhas, José Alberto & Marques, António Cardoso, 2012. "Energy consumption and economic growth nexus in Portugal, Italy, Greece, Spain and Turkey: An ARDL bounds test approach (1965–2009)," Energy Economics, Elsevier, vol. 34(2), pages 511-517.
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