Identifying Causality Relationship between Energy Consumption and Economic Growth in Developed Countries

Abstract

___________________________________________________________________The main purpose of this study is to evaluate the causality relationship between energy consumption and economic growth for developed countries. Within this context, annual data of 22 developed countries was examined by using Dumitrescu Hurlin panel causality analysis. As a result, it was determined that that there is a bidirectional relationship between energy consumption and economic improvement for developed countries. This condition provides two different results. Firstly, energy consumption has an influence on economic development for these countries. While considering this result, it can be said that any limitation in energy consumption will restrict economic growth. Moreover, it was also concluded that level of economic growth is the main reason of energy consumption for developed countries. In other words, developed countries tend to have more energy consumption when their economies are growing.

Sağlık Harcamaları, Sermaye Birikimi ve Ekonomik Büyüme Arasındaki Nedensel İlişki: Gelişmiş ve Gelişmekte Olan Ülkeler Üzerine Bir İnceleme

“…It reveals that the financing of health expenditures, which is dependent on investments in the health sector, depends on the increase in growth. This finding is consistent with Alhowaish (2014), Dinçer and Yüksel (2019), Elmi and Sadeghi (2012), Khan et al (2016) Mehmood et al (2014, Mehrara and Musai (2011b), Öztürk and Topcu (2014). In addition, uni-directional causal relationship has been identified between capital accumulation and economic growth in developing countries.…”

Association between health expenditures, economic growth and environmental pollution: Long‐run and causality analysis from Asian economies

“…Theoretical literature on health economics considered health care as a technical necessity when income elasticity is less than one and luxury good when income elasticity is greater than one. 12,[78][79][80] Similar to Murthy and Okunade, 79 ; Baltagi and Moscone, 81 we claim that public spending on health is a necessity because the coefficient of income elasticity is less than one in majority of Asian countries. Similarly, total spending on health is viewed as a luxury good only in the case of Israel and Thailand where the coefficient of income elasticity is greater than one while in remaining countries, it is considered as necessity.…”

“…on emerging economies. Theoretical literature on health economics considered health care as a technical necessity when income elasticity is less than one and luxury good when income elasticity is greater than one 12,78–80 . Similar to Murthy and Okunade, 79 ; Baltagi and Moscone, 81 we claim that public spending on health is a necessity because the coefficient of income elasticity is less than one in majority of Asian countries.…”

“…Piabuo and Tieguhong 46 noted one-way causality from GDP to health spending in African economics and two-way causality in CEMAC 3 region. In a recent study, Dincer and Yuksel 12 showed that GDP growth leads to total, public and private financing on health in E7 countries. Finally, the findings of above-mentioned literature are inconclusive and demand further evidence to explain the phenomena.…”

“…The pairwise association between income growth and environmental pollution; income growth and health expenditures; environmental pollution and health expenditures is extensively studied in empirical literature (see for example 6,[12][13][14][15][16][17][18] However, a relatively few studies examined the link between health expenditures, income growth and environmental quality by utilizing time-series [19][20][21] and panel data techniques. 3,18,22 Therefore, the objective of current study is to empirically examine the association between health expenditures, EG and environmental pollution in Asian countries both at aggregated and individual level.…”