Aggregation and the role of energy in the economy

The relationship between economic growth, energy consumption, and CO2 emissions: Empirical evidence from China

“…The study on Malaysia taken by Begum et al (2015) showed that over the period of 1970-1980, CO 2 emissions decreased with economic growth; however from 1980 to 2009, CO 2 emissions increased sharply with a further increase of GDP. Similar results were also found by Cleveland et al (2000). Taking China as an example, Wang et al (2011) demonstrated the existence of short-run and long-run causality running from energy consumption to economic growth using a multivariate causality test.…”

Energy consumption and economic growth: Parametric and non-parametric causality testing for the case of Greece

“…To the extent that we know the literature there are no previous studies combining non-linear causality techniques along with the use of a quality-weighted scheme in the construction of the total energy consumption series. The energy quality adjustment approach adopted in this paper is in accordance with the influential study of Cleveland et al (2000), who argued that in "aggregating different energy types by their heat units embodies a serious flaw: it ignores qualitative differences among energy vectors" as well as that "adjusting energy for quality is important as is considering the context within energy use is occurring". This view, for energy quality adjustment, is further acknowledged and supported by Zachariadis (2007), who argued that such practice has to be seriously considered in similar empirical applications.…”

“…Hondroyiannis et al (2002) in their analysis for Greece (1960Greece ( -1996 implemented the Johansen cointegration technique and the VECM causality framework as well as Ghali and El-Sakka (2004) under the same methodology for the Canadian economy , both found bidirectional causality between energy consumption and GDP. However, when Cleveland et al (2000) employed the standard Granger causality test, in a bivariate as well as in a multivariate framework, to the US economy they reached inconclusive results.…”

“…Consequently, prices are fraught with a number of taxes and restrictions and so they do not reflect only preferences and productivities. Finally, the use of prices for the purposes of aggregation of various energy sources to a single one is based on the implicit assumption that the substitutability among the various fuels is unaffected by the magnitude of the non-fuel inputs used (Cleveland et al, 2000), a very strong assumption in some cases. 2…”

Contrasting values in the sustainability debate: limitations of economic valuations and their role in decision-making

“…Finally, there is a need for an iterative "conversion" of how much efficiency contributes to other social goals. Examples of some of the most promising work in this regard for ecological sustainability are related to energy and emergy analyses of the economy that, unlike market-based analyses, uphold the Laws of Thermodynamics (Ayres et al, 1996;Odum, 1996;Cleveland et al 2000, Brown et al 2009). …”