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Causality and Cointegration between Energy Consumption and Economic Growth in Developing Countries

In: The Econometrics of Energy Systems

Author

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  • Jan Horst Keppler

Abstract

Estimating the relation between energy demand (or of any of its components such as electricity) and economic growth (GDP) is one of the classic applications of econometrics in the energy sector (see Bohi and Zimmerman, 1984; Dahl, 1994; or Table 4.2 for surveys). It is also an issue of high relevance for development and energy policies. Consider, for instance, that a government would like to introduce measures to control energy demand (say, an energy tax) to improve its environmental performance and to reduce its dependence on foreign imports. If energy consumption precedes or causes economic growth, such policies would hamper further economic development.

Suggested Citation

  • Jan Horst Keppler, 2007. "Causality and Cointegration between Energy Consumption and Economic Growth in Developing Countries," Palgrave Macmillan Books, in: Jan Horst Keppler & RĂ©gis Bourbonnais & Jacques Girod (ed.), The Econometrics of Energy Systems, chapter 4, pages 75-97, Palgrave Macmillan.
  • Handle: RePEc:pal:palchp:978-0-230-62631-7_4
    DOI: 10.1057/9780230626317_4
    as

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