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The Energy-Economic Growth Nexus in Latin American and Caribbean Countries: A New Approach with the Globalisation Index

In: Globalisation and Energy Transition in Latin America and the Caribbean

Author

Listed:
  • Matheus Koengkan

    (University of Aveiro)

  • José Alberto Fuinhas

    (University of Coimbra)

Abstract

This chapter inaugurates the study of the energy-economic growth nexus with a new approach to introducing the globalisation index in ten Latin American countries from 1971 to 2014. The panel autoregressive distributed lag (PARDL) and the Granger causality Wald test were used as a methodology. The empirical results pointed to the existence of a bidirectional relationship between economic growth and consumption of renewable energy, a unidirectional relationship from consumption of fossil to economic growth, and a bidirectional relationship between globalisation and consumption of renewable energy. These results help local governments develop new policies with the purpose of increasing the consumption of renewable energy and reducing environmental degradation while promoting development.

Suggested Citation

  • Matheus Koengkan & José Alberto Fuinhas, 2022. "The Energy-Economic Growth Nexus in Latin American and Caribbean Countries: A New Approach with the Globalisation Index," Springer Books, in: Globalisation and Energy Transition in Latin America and the Caribbean, chapter 0, pages 101-135, Springer.
    • Handle: RePEc:spr:sprchp:978-3-031-13885-0_5
    DOI: 10.1007/978-3-031-13885-0_5
    as

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