In this paper, the relationship between biomass energy consumption and economic growth was analysed for some European Transition Countries. Two econometrical methods, which are time series (Autoregressive Distributed Lag (A.R.D.L.) bounds testing approach and Granger Causality) and Panel data methods (Pedroni test, Panel Johansen test and Panel Causality test) were used to determine the cointegration relationship between the variables. A.R.D.L. and Granger Causality methods were practiced for Albania, Bulgaria and Romania for the 1981-2014 period. Panel Cointegration and Causality methods were applied for Bosnia and Herzegovina, Czech Republic, Hungary, Macedonia and Slovak Republic for the 1991-2014 period; and Croatia, Estonia, Latvia and Slovenia for the 1995-2014 period. According to the results, while short-run and long-run causality results demonstrate that the conservation hypothesis is valid for Albania and the countries in group 1, evidence of the growth hypothesis is supported for Bulgaria, Romania and the countries in group 2. In strong causality results, evidence of bidirectional causality for all countries is found.
In this paper, the causality analysis between biomass energy consumption and economic growth was investigated in the selected 10 countries by using Autoregressive Distributed Lag bounds testing approach and vector error-correction models. Annual data cover the period from 1960 to 2010. The short run, long run, and strong causality results suggest that there is unidirectional causality from Y to biomass energy consumption for Austria and Turkey, and there is unidirectional causality from biomass energy consumption to Y for Hungary and Poland. For Spain, Sweden, and France, it was found as bidirectional causality. According to strong and long run causalities, bidirectional causality was found for all the countries. V C 2013 AIP Publishing LLC. [http://dx.
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