IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

A causal relationship between energy consumption and economic growth in Nepal

  • Kamal Raj Dhungel

    ()

    (Central Department of Economics, Tribhuvan University, Nepal)

Registered author(s):

    In the present paper, an attempt is made to examine the causal relationship between the per capita consumption of coal, electricity, oil and total commercial energy and the per capita real gross domestic product (GDP), using a co-integration and vector error correction model. The increase in real GDP, among other things, indicates a higher demand for a large quantity of commercial energy such as coal, oil and electricity. This implies that low infrastructure development limits the usage of commercial energy, which may also hold back economic growth. Empirical findings reveal that there is a unidirectional causality running from coal, oil and commercial energy consumption to per capita real GDP, whereas a unidirectional causality running from per capita real GDP to per capita electricity consumption is found. It is suggested that the input of per capita energy consumption stimulates enhanced economic growth in Nepal.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://www.unescap.org/pdd/publications/apdj_15_1/7_Dhungel.pdf
    Download Restriction: no

    Article provided by United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) in its journal Asia-Pacific Development Journal.

    Volume (Year): 15 (2008)
    Issue (Month): 1 (June)
    Pages: 137-150

    as
    in new window

    Handle: RePEc:unt:jnapdj:v:15:y:2008:i:1:p:137-150
    Contact details of provider: Postal: The United Nations Building, Rajadamnern Nok Avenue, Bangkok 10200
    Phone: (66-2) 288-1234
    Fax: (66-2) 288-1000
    Web page: http://www.unescap.org/
    Email:


    More information through EDIRC

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    as in new window
    1. David I. Stern, 1998. "A multivariate cointegration analysis of the role of energy in the U.S. macroeconomy," Working Papers in Ecological Economics 9803, Australian National University, Centre for Resource and Environmental Studies, Ecological Economics Program.
    2. Ghosh, Sajal, 2002. "Electricity consumption and economic growth in India," Energy Policy, Elsevier, vol. 30(2), pages 125-129, January.
    3. Yang, Hao-Yen, 2000. "A note on the causal relationship between energy and GDP in Taiwan," Energy Economics, Elsevier, vol. 22(3), pages 309-317, June.
    4. Soytas, Ugur & Sari, Ramazan, 2003. "Energy consumption and GDP: causality relationship in G-7 countries and emerging markets," Energy Economics, Elsevier, vol. 25(1), pages 33-37, January.
    5. Cheng, Benjamin S. & Lai, Tin Wei, 1997. "An investigation of co-integration and causality between energy consumption and economic activity in Taiwan," Energy Economics, Elsevier, vol. 19(4), pages 435-444, October.
    6. Mozumder, Pallab & Marathe, Achla, 2007. "Causality relationship between electricity consumption and GDP in Bangladesh," Energy Policy, Elsevier, vol. 35(1), pages 395-402, January.
    7. Granger, C. W. J. & Newbold, P., 1974. "Spurious regressions in econometrics," Journal of Econometrics, Elsevier, vol. 2(2), pages 111-120, July.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:unt:jnapdj:v:15:y:2008:i:1:p:137-150. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Macroeconomic Policy and Development Division, ESCAP)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.