Energy-income causality in OECD countries revisited: The key role of capital stock

Lee, Chien‐Chiang; Chang, Chun‐Ping; Chen, Pei-Fen

doi:10.1016/j.eneco.2008.01.005

Cited by 249 publications

(79 citation statements)

References 41 publications

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“…A 1% increase in capital enhances demand for energy consumption by 0.050%, ceteries paribus. This finding supports the view of Lee et al (2008) For the panel estimation, the variable of population has a significant and positive effect on energy consumption at the 10% level. This suggests that a 1% increase in population raises energy consumption directly and indirectly by 0.013% Denotes statistical significance (+) denotes it has positive effect on the per capita CO2.…”

Section: Main Results and Discussionsupporting

confidence: 81%

Untitled

2017

International Journal of Sustainable Energy and Environmental R

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Article HistoryThe relationship among CO2 emission, Economic Growth and Energy Consumption were examine in this study. This study specifically examines the combine impact CO2 emission, and Economic Growth on Energy Consumption. The study uses a dynamic panel data of esteem the time series analysis on 1980. Our result shows that Economic Growth is positively related to Energy Consumption. But when CO2 emission is interacted with Economic Growth the combine impact is increasing in energy consumption. The study therefore recommend that appropriate policy should formulated by the government to drive up energy consumption.Contribution/ Originality: The paper contributes the first logical analysis in the existing literature of the relationship between Co2 emission, economic growth and energy consumption. The study departs from other studies by examining the combined impact of Co2 emission and economic growth on energy consumption in SubSaharan African countries during the period of the study. There is also robust use of system GMM developed by Arellano and Bond (1991) which gave consistent and efficient estimates.

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Section: Main Results and Discussionsupporting

confidence: 81%

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2017

International Journal of Sustainable Energy and Environmental R

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“…As discussed above, in the energy economics literature a number of papers have found variables like GDP per capita-as well as energy consumption and labor force, which should be highly correlated with carbon emissions and population respectively-to be nonstationary in levels but stationary in first differences for OECD country panels (e.g., Lee, Chang, and Chen 2008;and Apergis and Payne 2010). Thus we have a strong a priori belief that the variables used here that are in levels should be panel I(1) as well.…”

Section: Pre-testing Resultsmentioning

confidence: 99%

“…Second, it tests the variables analyzed for panel unit roots (or stationarity) and employs panel cointegration and panel FMOLS to estimate elasticities. Although the variables used in STIRPTAT analyses are stocks or stock-related and are often highly trending (and thus likely to be nonstationary), and although cointegration and FMOLS have been used extensively in the energy economics literature to examine relationships among similar variables (e.g., Lee, Chang, and Chen 2008;Apergis and Payne 2010), to our knowledge cointegration has not been used in empirical population-environment studies.…”

Section: Notementioning

confidence: 99%

“…The finding of cointegration among economic or economic-related variables is interpreted as evidence of a long-run equilibrium relationship. Indeed, the rather large energy consumption-GDP causality literature has shown that (i) variables like GDP per capita, population (or labor force), and emissions/energy consumption all have panel unit roots, and (ii) production-function models-where GDP is a function of energy consumption, labor, and physical capital-are panel-cointegrated for OECD country panels (e.g., Lee, Chang, and Chen 2008;and Apergis and Payne 2010). Pedroni's (2000) FMOLS estimator is designed for panels of cointegrated variables and produces asymptotically unbiased estimates and standard normal distributions free of nuisance parameters.…”

Section: Nonstationary Variables Cointegration Modeling Fmols and mentioning

confidence: 99%

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Consumption-Driven Environmental Impact and Age Structure Change in OECD Countries

Liddle

2011

DemRes

143

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“…Erdal, Erdal and Esengün (2008) also reported bidirectional causality between economic growth and energy consumption for the Turkish economy. Lee et al (2008) studied the relationship between energy consumption and economic growth for 22 OECD countries by applying the Pedroni panel cointegration test. Their findings supported the presence of a feedback effect between energy consumption per capita and real GDP per capita.…”

Section: Electricity Consumption and Economic Growthmentioning

confidence: 99%

Dynamics of electricity consumption, oil price and economic growth: Global perspective

et al. 2017

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Abstract:This study uses the data from 157 countries from 1960 to 2014 to analyze the relationship between economic growth, electricity consumption, oil prices, capital, and labor. The economic growth of developing countries with industrial infrastructure has a more significant association with electricity consumption than oil prices. We use oil prices and electricity consumption jointly to study highly predictive observations for economic growth. The data are categorized by income, OECD and regional levels. The panel cointegration, long-run parameter estimation, and Pool Mean Group testsare used to analyze the cointegration and short-run and long-run relationships between the variables. The empirical results indicate the presence of cointegration between the variables. The presence of feedback effects between electricity consumption and economic growth, oil prices and economic growth is valid. These findings confirm that inspite of the oil prices, developing countries rely heavily on electricity consumption for economic growth. In the short run, growth and feedback effects suggest that more vigorous electricity policies should be implemented to attain sustainable economic growth for the long-term.

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Energy-income causality in OECD countries revisited: The key role of capital stock

Cited by 249 publications

References 41 publications

Untitled

Untitled

Consumption-Driven Environmental Impact and Age Structure Change in OECD Countries

Dynamics of electricity consumption, oil price and economic growth: Global perspective

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