The role of globalization on the recent evolution of energy demand in India: Implications for sustainable development

Shahbaz, Muhammad; Mallick, Hrushikesh; Mahalik, Mantu Kumar; Sadorsky, Perry

doi:10.1016/j.eneco.2016.01.013

Cited by 306 publications

(166 citation statements)

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“…Previous studies have not addressed this result because the asymmetric effect has not been investigated. However, this finding partly supports the findings of Mallick (2009), Mandal andMadheswaran (2012), and Shahbaz et al (2016), who report a feedback effect between energy consumption and economic growth. Energy conservation policies are thus suggested to impede economic growth, which, in turn, reduces energy demand (positive causality from negative shocks in energy consumption to negative shocks in economic growth, line 6).…”

Section: Asymmetric Causalities Between Energy Consumption Financialsupporting

confidence: 71%

“…As such, we choose to use this variable to reflect financial development in India. Numerous previous studies, such as Sadorsky (2011), Mehrara and Musai (2012), Polat et al (2015) and Shahbaz et al (2016), have also chosen this variable. …”

Section: Datamentioning

confidence: 99%

“…By contrast, showed a neutral effect between energy consumption and financial development in India over the 1971-2011 period. Shahbaz et al (2016) indicated that financial development reduces energy consumption.…”

Section: The Nexus Between Financial Development and Energy Consumptionmentioning

confidence: 99%

“…Neutrality hypothesis (Growth >< Energy) - Masih and Masih (1996) (1955-1990 -Asaf-Adjaye (2000) (1973) -Fatai et al (2004) (1960-1999) -Gupta and Sahu (2009) (1960) -Mallick (2009) (1970-2005, for coal) - Ghosh and Kanjilal (2014) (1971) -Yang and Zhao (2014) (1970 - Cheng (1999) (1952) -Ghosh (2002) (1950-1997) -Mallick (2009) (1970-2005, for oil and electricity) - Shahbaz et al (2016Shahbaz et al ( ) (1971Shahbaz et al ( -2012 - Paul and Bhattacharya (2004) (1950-1996 - Abbas and Choudhury (2013) (1972, agricultural sector) - Ahmad et al (2016Ahmad et al ( ) (1971Ahmad et al ( -2014 - Asghar (2008Asghar ( ) (1971Asghar ( -2003 - Alam et al (2011) (1971-2006) (1971 These different results may be explained by the methods used (e.g., autoregressive distributed lag (ARDL) ...…”

Section: Feedback Hypothesis (Growth ↔ Energy)mentioning

confidence: 99%

“…Ahmad et al (2016) found a feedback relationship between energy consumption and economic growth in India over the 1971-2014 period. Shahbaz et al (2016) showed that economic growth and energy consumption were complementary, i.e., a feedback effect.…”

Section: Introductionmentioning

confidence: 99%

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Energy consumption, financial development and economic growth in India: New evidence from a nonlinear and asymmetric analysis

et al. 2017

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This paper investigates the asymmetric relationship between energy consumption and economic growth by incorporating financial development, capital and labour into a production function covering the Indian economy from 1960Q 1 -2015Q 4 . The nonlinear autoregressive distributed lag bounds testing approach is applied to examine the asymmetric cointegration between the variables. An asymmetric causality test is also employed to examine the causal association between the considered variables. The results indicate cointegration between the variables in the presence of asymmetries. The asymmetric causality results show that only negative shocks in energy consumption have impacts on economic growth. In the same vein, only negative shocks in financial development have impacts on economic growth. By contrast, symmetrically, capital formation causes economic growth. Finally, over the study period, a neutral effect exists between the labour force and economic growth in India. The implications of these results for growth policies in India are also discussed.Keywords: Financial Development, Energy, Growth, India, Asymmetries JEL classification: O13 Acknowledgements: We would like to thank the editor, Professor Richard Tol (University of Sussex, Brighton, UK), as well as the three anonymous reviewers, for their valuable comments and suggestions that helped us improve our paper significantly. We also thank the participants at the 7 th International Research Meeting in Business and Management (IPAG, Nice, France, 11-12 July 2016). We are also grateful to Jawad Kazmi for his technical assistance. The authors' are responsible for any remaining errors or shortcomings. IntroductionThis study uses quarterly data to investigate the relationship between energy consumption and economic growth in India over the 1960-2015 period. Financial development (measured by domestic credit to the private sector), 1 capital formation and labour force 2 are also included in the Cobb-Douglas production function. This study's main contribution to the existing literature on the energy-growth nexus concerns its examination of the potential asymmetric relationship between the variables. Taking this asymmetry into account is important because a positive or negative variation on one variable does not have the same impact on the other variable. The existence of an asymmetric relationship between two variables can be caused by numerous factors, one of which concerns the complexity of economic systems and the mechanisms that generate the variables under study. This complexity may induce various channels through which one variable affects another. In our case, the relationship between energy consumption and economic growth has been found to be very complex because previous studies have shown four possible impact channels: the growth, conservative, feedback and neutrality hypotheses. 3 On the one hand, the relationship between energy consumption and financial development can also be very complex because numerous impact channels can exist between them...

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Section: Asymmetric Causalities Between Energy Consumption Financialsupporting

confidence: 71%

Section: Datamentioning

confidence: 99%

Section: The Nexus Between Financial Development and Energy Consumptionmentioning

confidence: 99%

Section: Feedback Hypothesis (Growth ↔ Energy)mentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Energy consumption, financial development and economic growth in India: New evidence from a nonlinear and asymmetric analysis

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Financial development, energy consumption, and economic growth: Some recent evidence for India

Raghutla

Chittedi

2020

Bus Strat Dev

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The objective of this study is to investigate the empirical relationship between financial development, energy consumption, and economic growth in India, spanning the time period 1970-2018. The study used ARDL-bound tests and the VECM method. Results confirm the presence of a long-term relationship among variables. Results from the Granger causality test show a unidirectional relationship, from economic growth to financial development, in the short-term. However, in the long-term, we identify a bidirectional causal relationship between economic growth and energy consumption and energy consumption and financial development. The study concludes that financial development and energy consumption are the key drivers of the economic growth of India.

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Does the environmental Kuznets curve exist between globalization and energy consumption? Global evidence from the cross‐correlation method

et al. 2018

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We explore the nexus between globalization and energy demand for 86 high‐, middle‐, and low‐income countries over the period 1970–2015. We use a simple approach based on the cross‐correlation to understand how globalization and energy consumption are related in terms of time lags and leads. Our findings show that for 64 out of the 86 countries (approximately 74%), there is clear evidence in support of the environmental Kuznets curve (EKC) hypothesis. The globalized environment (e.g., globalization) has been conducive for the majority of the countries in reducing their long‐term energy consumption. From a policy perspective, our findings suggest that the role of “globalization” in the EKC function should not be underestimated by policymakers and governments of these countries while designing a policy framework for the reduction of energy demand in the long run.

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The role of globalization on the recent evolution of energy demand in India: Implications for sustainable development

Abstract: Abstract:Using annual data for the period 1971-2012, this

Cited by 306 publications

References 72 publications

Energy consumption, financial development and economic growth in India: New evidence from a nonlinear and asymmetric analysis

Energy consumption, financial development and economic growth in India: New evidence from a nonlinear and asymmetric analysis

Financial development, energy consumption, and economic growth: Some recent evidence for India

Does the environmental Kuznets curve exist between globalization and energy consumption? Global evidence from the cross‐correlation method

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