An investigation of co-integration and causality between energy consumption and economic activity in Taiwan

Cheng, Benjamin S.; Lai, Tin Wei

doi:10.1016/s0140-9883(97)01023-2

Cited by 372 publications

(166 citation statements)

References 14 publications

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“…Table 1 shows the composition of these country groups. The empirical exercise has been done separately for each of these country groups based on the bivariate panel data sets for the individual country groups 8 . Table 2 presents the country-group-specific results of unit root test for logarithm of PCGDP and logarithm of PCCO2 (i.e., income and emission respectively, in our terminology) based on the IPS method.…”

Section: Data Description and Resultsmentioning

confidence: 99%

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Income and emission: A panel data-based cointegration analysis

Dinda¹,

Coondoo

2006

Ecological Economics

386

162

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This paper presents the results of an investigation of the causality issue of incomeemission relationship based on time series econometric techniques of unit root test, cointegration and related error correction model for a panel data set. Here, the nature of causality between per capita CO 2 emission (PCCO2) and per capita GDP (PCGDP) has been examined using a cross country panel data set covering 88 countries for the period 1960 -90. Using the panel unit root test procedure of Im et al. (1997) (IPS), we have found that the hypothesis of unit root (i.e., non-stationarity) of the time series of PCGDP and PCCO2 can not be rejected for individual country groups. As both the variables are found to follow I(1) process, we next have performed the panel data co-integration test and finally, we have estimated the ECM (for these country groups for which significant income-emission cointegration was obtained) to explore the nature of dynamics implicit in the given panel data set. Our findings suggest that there is more or less a bi-directional causal relationship between income (PCGDP) and CO 2 emission (PCCO2) for Africa, Central America, America as a whole, Eastern Europe, Western Europe, Europe as a whole and the World as a whole. That means, the movement of the one variable directly affects the other variable through a feedback system. Thus, the policy makers should be cautious to make proper decision about the control of emission level.JEL Classification: C33, O40, and Q25.

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Section: Data Description and Resultsmentioning

confidence: 99%

“…Possibly this heterogeneity in the pattern of causality led to the observed bi-directional causality at the level of country-groups for these two continents. 2 See, e.g., Yu and Choi (1985), Cheng (1996), Cheng and Lai (1997) and Yang (2000).…”

Section: Introductionmentioning

confidence: 99%

Income and emission: A panel data-based cointegration analysis

Dinda¹,

Coondoo

2006

Ecological Economics

386

162

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“…This shows that electricity consumption does not play a vital role in stimulating economic growth. The conservation hypothesis is empirically validated by Cheng and Lai (1997), Aqeel and Butt (2001), Narayan and Singh (2007), Narayan et al (2010), Mahmoodi andMahmoodi (2011), Shahbaz andFeridun (2012) and Kasnan and Dunan (2015). (iv) The neutral effect indicates that electricity consumption does not lead economic growth and vice versa.…”

Section: Electricity Consumption and Economic Growthmentioning

confidence: 95%

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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“…Recent studies that made significant contribution to the literature are Al-faris (1992), Eltony and Hoque (1996), Mohammad and Eltony (1996), Masih and Masih (1996a & b), Cheng and Lai (1997), Brenton (1997), Diabi (1998), Ghali (1998), Pesaran et.al (1998), Sinton and Fridley (2000), Aqeel and Butt (2001), Hondroyiannis et.al (2002), Soytas and Sari (2003), Fisher-Vanden et.al (2004), Al-Iriani (2006), Wolde-Rufael (2006), Lee (2005), Yoo (2006), Mahadevan and AsafuAdjaye (2007) and Chiou-Wei et.al (2008). However, there are limited empirical studies on the demand for energy for small island states, for example, Fiji with only a few studies (Narayan andSingh, 2007 andRao andRao, 2009a &b).…”

Section: Introductionmentioning

confidence: 99%

Cointegration and the demand for energy in Fiji

Kumar

2011

IJGEI

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This paper applies alternative time series techniques such as General to Specific (GETS) and Johansen Maximum Likelihood (JML) to estimate the long run income and price elasticities of demand for energy for Fiji. We also test for the causal relationship between energy consumption, GDP and energy prices using the Granger causality tests. Our results imply that there is a uni-directional causality running from GDP to energy consumption.

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An investigation of co-integration and causality between energy consumption and economic activity in Taiwan

Cited by 372 publications

References 14 publications

Income and emission: A panel data-based cointegration analysis

Income and emission: A panel data-based cointegration analysis

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

Cointegration and the demand for energy in Fiji

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