Differences in coal consumption patterns and economic growth between developed and developing countries

Li, Jinke; Wang, Fenghua; Song, Hayub

doi:10.1016/j.proeps.2009.09.267

Cited by 23 publications

(9 citation statements)

References 15 publications

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“…Moreover, coal consumption and GDP growth were cointegrated in Japan, China, India and South Africa, and a one-way causal relationship from GDP growth to coal consumption was found in Japan and China. The same result was arrived at in a number of developed and developing countries (Jin-ke et al, 2009).…”

Section: Studies On the Relationship Between Coal Consumption And Gdp Growthsupporting

confidence: 75%

The relationship between energy consumption and GDP in emerging countries

Al‐mulali

Mohammed

2015

International Journal of Energy Sector Management

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Purpose – This paper aims to investigate the relationship between gross domestic product (GDP) by sector and energy consumption by type in 16 emerging countries. Design/methodology/approach – The panel model was utilized taking the period 1980-2010. Findings – The results revealed that GDP by sector and energy consumption by type are cointegrated. Moreover, the Granger causality concluded a bi-directional causal relationship between oil, natural gas and renewable energy consumption and the value of the manufacturing, industrial and services sector. Furthermore, a bi-directional causal relationship was also found between coal consumption and the value of the services sector. Furthermore, a one-way causal relationship was found from oil consumption to the value of the agriculture sector, the value of the agriculture sector to coal consumption, and coal consumption to the value of the manufacturing and the industrial sectors. Practical implications – This study recommended that these countries should increase their renewable energy consumption to achieve their GDP growth. Originality/value – This study is different from the previous studies, as it disaggregated the GDP into four sectors, namely, agriculture, manufacturing, industrial and the services sector. In addition, this study will disaggregate energy consumption into oil consumption, gas consumption, coal consumption and electricity consumption.

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Section: Studies On the Relationship Between Coal Consumption And Gdp Growthsupporting

confidence: 75%

The relationship between energy consumption and GDP in emerging countries

Al‐mulali

Mohammed

2015

International Journal of Energy Sector Management

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“…In fact, the development of methods has been remarkable. As recently as a few years ago, most published studies were conducted using either independent panel analysis or time-series models [13,14,16,[18][19][20][21][24][25][26][27][33][34][35]38,40,41]. Thereafter, studies considering structural breaks but not cross-sectional dependence were published [42].…”

Section: Introductionmentioning

confidence: 99%

Coal Consumption and Economic Growth: Panel Cointegration and Causality Evidence from OECD and Non-OECD Countries

Jin

Kim

2018

Sustainability

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This paper examines the relationship between coal consumption and economic growth for 30 OECD (Organisation for Economic Co-operation and Development) countries and 32 non-OECD countries for 1990-2013 using a multivariate dependent panel analysis. For the analysis, we conducted the common factor defactorization process, unit root test, cointegration test, long-run cointegrating vector, and Granger causality test. Our results suggest the following: First, there is no long-run relationship between coal consumption and economic growth in OECD countries; however, in non-OECD countries, the relationship does exist. Second, excessive coal usage may hinder economic growth in the long run. Lastly, the growth hypothesis (coal consumption affects economic growth positively) is supported in the short run for non-OECD countries. As coal consumption has a positive effect on economic growth in the short run and a negative effect in the long run, energy conservation policies may have adverse effects only in the short run. Thus, non-OECD countries should gradually switch their energy mix to become less coal-dependent as they consider climate change. Moreover, a transfer of technology and financial resources from developed to developing countries must be encouraged at a global level.

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“…Time series studies on coal consumption and economic growth in the advanced OECD countries are not many; see Sari and Soytas (2004), Fatai et al (2004), Ewing et al (2007), Sari et al (2008), Payne (2011), Jinke et al (2009), Wolde-Rufael (2010 and Gurgul and Lach (2011). Using the generalized forecast error variance decomposition analysis, Sari and Soytas (2004) found that coal consumption explains up to 8% of the forecast error variance in real GDP for Turkey.…”

Section: The Case Of Advanced Oecd Countriesmentioning

confidence: 99%

“…Further, bi-directional causality between coal consumption and economic growth was attained by Yang (2000b), Lee and Chang (2005) and Hu and Lin (2008) for Taiwan, Fatai et al (2004) for Philippines and Thailand, Yoo (2006) for Korea, Zhang and Li (2007) and Yuan et al (2008) for China and Wolde-Rufael (2010) for South Africa. On the contrary, it is also observed that there is no causality between the two variables, for instance see Sari and Soytas (2004) for Turkey, Jinke et al (2008) for India, South Korea and South Africa, Zahid (2008) for India, Bangladesh, Nepal and Sri Lanka, Ziramba (2009) for South Africa, and Jinke et al (2009) for India and South Africa. For more details of these studies in relation to their sample periods, methodology, variables and cointegration results see Table 1.…”

Section: The Case Of Other Developing Countriesmentioning

confidence: 99%

Coal Consumption and Economic Growth Revisited: Structural Breaks, Cointegration and Causality Tests for Pakistan

Kumar

Shahbaz

2012

Energy Exploration & Exploitation

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A global profusion of coal provides many countries with opportunities for economic growth. The direction of causality between coal consumption and economic growth is useful for policy making, however, existing empirical evidence have failed to reach a consensus. This paper examined the liaison between coal consumption and economic growth for Pakistan over the period . The endogenous two-break LM unit root test, derived in Lee and Strazicich (2003), is used to assess the order of integration of the variables and structural breaks in the data series. Application of the autoregressive distributed lag (ARDL) bounds test reveals a cointegrating relationship between real income, real capital stock, labour and coal consumption, and further application of general to specific (GETS), Engle and Granger (EG), Stock Watson's dynamic ordinary least squares (DOLS) and Phillip Hansen's fully modified ordinary least squares (FMOLS) methods show statistical robustness of the estimates. The elasticity with respect to coal consumption is positive and significant. The vector error correction model (VECM) based Granger causality test and innovative accounting procedures (variance decomposition and impulse response functions) are also applied.

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Differences in coal consumption patterns and economic growth between developed and developing countries

Cited by 23 publications

References 15 publications

The relationship between energy consumption and GDP in emerging countries

The relationship between energy consumption and GDP in emerging countries

Coal Consumption and Economic Growth: Panel Cointegration and Causality Evidence from OECD and Non-OECD Countries

Coal Consumption and Economic Growth Revisited: Structural Breaks, Cointegration and Causality Tests for Pakistan

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