A dynamic panel study of energy consumption–economic growth nexus: evidence from the former Soviet Union countries

Abstract

This paper examines the relationship between energy consumption and real gross domestic product (GDP) per capita for the 15 former Soviet Union countries during the period 1992-2009. These countries have been rarely investigated with regard to the related nexus in the literature despite the important role of these countries in energy markets as producers and consumers. Panel unit root tests, panel cointegration tests and panel vector error correction model in a dynamic panel framework are employed to infer the causal relationship. The empirical results show that there is a unidirectional causal relationship running from energy consumption to the real GDP per capita in the long run but not in the short-run for the former Soviet Union countries and Commonwealth Independent States countries regardless Russia is included or excluded. However, we discover a bidirectional relationship for oil importer and natural gas importer countries. Therefore, the findings of this study support the growth hypothesis for the former subsegments and feedback hypothesis for the latter subsegments.

Causal nexus between energy consumption and economic growth for high, middle and low income countries using frequency domain analysis

“…The second opinion discloses that energy usage Granger causes economic growth, known as ''Growth Hypothesis". Several previous studies support growth hypothesis (e.g., [15,5,[16][17][18][19][20][21]14] and [22], among many others). The third opinion indicates that there exist no causality between energy usage and economic growth, called "Neutrality hypothesis".…”

“…The fourth opinion suggests that both energy u and economic growth Granger cause each other or bidirectional causality, known as ''Feedback Hypothesis". Various former studies support the feedback hypothesis (e.g., [27][28][29][30][31][32]14,22] among many others).…”

The Impact of Biofuels Utilisation in Transport on the Sustainable Development in the European Union

“…The causality between energy consumption and real GDP per capita was analyzed for 15 former Soviet Union countries over 1992-2009 using various models based on panel data. The results indicated a causal relationship only from energy consumption to the real GDP per capita only on long term (Dedeoglu, Piskin 2014).…”

Estimation and Forecasts for the Share of Renewable Energy Consumption in Final Energy Consumption by 2020 in the European Union

“…Numerous economists and researchers [13][14][15][16][17][18][19][20][21][22][23][24][25][26][27] have studied the relationship between final energy consumption or renewable energy consumption and other indicators from different perspectives using various methodologies. Some researchers designed a renewable energy sustainability index and tested it on 15 European countries, with different levels of final energy consumption and economic development [13], or examined per capita energy use for 19 Eurozone countries [14].…”

“…Some researchers designed a renewable energy sustainability index and tested it on 15 European countries, with different levels of final energy consumption and economic development [13], or examined per capita energy use for 19 Eurozone countries [14]. Others investigated the causality among energy consumption or renewable energy consumption and various macroeconomic indicators, such as economic growth (of European Union (EU)-28 countries [15], of Algeria [16], for 42 developing countries [17], for the 15 former Soviet Union countries [18] or for major renewable energy consuming countries in the world [19]), economic growth, capital, and labor (for new EU member countries [20]), carbon dioxide emissions, economic growth, and financial development (in the Gulf Cooperation Council (GCC) countries [21]), technological innovation (for China [22]), urbanization and economic growth (for China [23]). Liddle and Lung [24] disaggregate energy consumption and GDP data according to end-use to analyze a broad number of developed and developing countries grouped in panels by similar characteristics.…”