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Energy Consumption and Economic Growth: Parametric and Non-Parametric Causality Testing for the Case of Greece

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  • Dergiades, Theologos
  • Martinopoulos, Georgios
  • Tsoulfidis, Lefteris

Abstract

The objective of this paper is to contribute to the understanding of the linear and non-linear causal linkages between total energy consumption and economic activity, making use of annual time series of Greece for the period 1960-2008. Two are the salient features of our study: first, the total energy consumption has been adjusted for qualitative differences among its constituent components through the thermodynamics of energy conversion. In doing so, we rule out the possibility of a misleading inference due to aggregation bias. Second, the investigation of the causal linkage between economic growth and the adjusted for quality total energy consumption is conducted within a non-linear context. Our empirical results reveal significant unidirectional both linear and non-linear causal linkages running from total useful energy to economic growth. These findings may provide valuable information for the contemplation of more effective energy policies with respect to both the consumption of energy and environmental protection.

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  • Dergiades, Theologos & Martinopoulos, Georgios & Tsoulfidis, Lefteris, 2011. "Energy Consumption and Economic Growth: Parametric and Non-Parametric Causality Testing for the Case of Greece," MPRA Paper 51120, University Library of Munich, Germany, revised 12 Nov 2011.
  • Handle: RePEc:pra:mprapa:51120
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    More about this item

    Keywords

    Energy consumption; Economic growth; Non-linear causality.;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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