Controlling for relevant variables: Energy consumption and economic growth nexus revisited in an EGARCH-M (Exponential GARCH-in-Mean) model

Chiou-Wei, Song-Zan; Zhu, Zhen; Chen, Sheng‐Hung; Hsueh, Sheng-Pin

doi:10.1016/j.energy.2016.04.068

Cited by 25 publications

(3 citation statements)

References 32 publications

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“…The mainstream economic theory of production considers labor and capital as the main factors of production. Nevertheless, the neo-classical aggregate production function complements energy as an additional and necessary input factor in the production model (Shahbaz et al, 2014;Chiou-Wei et al, 2016). In a broader sense, energy is a vital input for all production processes (Azam et al, 2015).…”

Section: Introductionmentioning

confidence: 99%

Renewable and Non-renewable Energy Consumption and Economic Growth in Pakistan: A Disaggregated Analysis

Durrani

Jan

Pervez

2022

JAEBS

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This study addresses the research question of how renewable and non-renewable energy consumption (EC) affects economic growth (GDP) in Pakistan over a period of 1972-2015. The study extends the basic production function having labor and capital as the mainstream variables by adding major energy sources of Pakistan. The results of Toda-Yamamoto Granger causality test confirm that no causality exists between GDP and labor force and bidirectional causality exists between GDP and gross capital formation. Moreover, the results confirm a unidirectional relationship (growth hypothesis) between hydroelectricity consumption (HEC) and nuclear energy consumption (NEC) and a bidirectional relationship (feedback hypothesis) between fossil fuel consumption (FFC) and GDP, respectively. The findings suggest for an efficient utilization of existing energy resources along with diversification and expansion of the renewable energy resources. The study recommends for the government policy to avoid energy conservation as it can hamper GDP growth in Pakistan.

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Section: Introductionmentioning

confidence: 99%

Renewable and Non-renewable Energy Consumption and Economic Growth in Pakistan: A Disaggregated Analysis

Durrani

Jan

Pervez

2022

JAEBS

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“…The researchers estimated an overall panel and three partial area panels of China using the augmentation average group and the dynamic common correlation effect average group estimator. Chiou-Wei et al [25] studied the relationship between energy consumption and economic growth of five Asia-Pacific countries in 1965-2010 by controlling other correlated economic variables. They used the annual data and adopted the bivariate index GARCH in the average model.…”

Section: Introductionmentioning

confidence: 99%

Analysis on the Influence of China’s Energy Consumption on Economic Growth

Cheng

Liu

2019

Sustainability

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Many studies have shown that energy consumption has a great influence on economic growth. This paper divides China’s energy into coal, oil, natural gas and clean energy (hydroenergy, nuclear energy, wind energy and solar energy), and then studies the influences of China’s coal, oil, natural gas and clean energy on economic growth quantitatively using econometric models. This paper uses three methods. The first method is correlative degree analysis. The paper calculates the correlative degrees between four energy consumption and economic growth (GDP), and then compares the influences of four different kinds of energy consumption on economic growth in terms of the correlative degree. The second method is multiplier analysis. The paper uses the lagged variable regression model to calculate four energy consumption’s current multipliers, dynamic multipliers and long-term multipliers for economic growth, and then compares the influences of four kinds of energy consumption on economic growth in terms of marginal effect. The third method is contribution rate analysis. The paper calculates the rates of contribution of four kinds of energy consumption to economic growth and then compares the influences of four energy consumption on economic growth in terms of input and output. The paper makes an empirical analysis on influences of China’s energy consumption on economic growth. Analysis results show that in terms of correlative degree, natural gas has the greatest influence on GDP, followed by clean energy, oil and coal; in terms of the multiplier effect, natural gas has the biggest current multiplier and long-term multiplier, followed by clean energy, oil and coal; in terms of contribution rate, clean energy has the biggest contribution rate, followed by natural gas, oil and coal. Overall, China’s natural gas consumption and clean energy consumption have more influence on economic growth than coal consumption and oil consumption, and show a rising trend.

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“…Hiemstra and Jones,(1994) asserted the existence of nonlinearity which is underlined below the linear causality tests. Given the amount of studies examined the phenomenon, only a slight number of them evaluated nonlinear causality among economic growth and energy consumption (Chiou-Wei et al, 2008;Dergiades et al, 2013;Fallahi, 2011;Huang et al, 2008;Lee and Chang, 2007;Omay et al, 2012;1 The relative literature provides a vast amount of recent empirical findings on the matter subject from different regions and countries applying different methodological frameworks (among others, Naser, 2015;Chiou-Wei et al 2016;Destek, 2016;Esso and Keho, 2016;Kahia et al, 2016;Ahmad and Du, 2017;Adewuyi and Awoduni, 2017;Ge et al, 2017). 2 Burns et al, (2014), were the first who used meta-analysis in 72 studies selected from this literature in order to determine if exist a genuine effect in this literature.…”

Section: Introductionmentioning

confidence: 99%

Re-evaluating the energy consumption-economic growth nexus for the United States: An asymmetric threshold cointegration analysis

Kourtzidis

Tzeremes

2018

Energy

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This paper examines the relationship between energy consumption and economic growth for the United States both at a country and at a sectoral level (Industry, Residential, Electric Power and Transportation) using an asymmetric threshold cointegration approach and monthly data from January 1991 to May 2016. Granger causality tests support a neutrality hypothesis for all sectors, except for the case of total consumption at the country level where a unidirectional causality is running from energy consumption to economic growth.

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Controlling for relevant variables: Energy consumption and economic growth nexus revisited in an EGARCH-M (Exponential GARCH-in-Mean) model

Cited by 25 publications

References 32 publications

Renewable and Non-renewable Energy Consumption and Economic Growth in Pakistan: A Disaggregated Analysis

Renewable and Non-renewable Energy Consumption and Economic Growth in Pakistan: A Disaggregated Analysis

Analysis on the Influence of China’s Energy Consumption on Economic Growth

Re-evaluating the energy consumption-economic growth nexus for the United States: An asymmetric threshold cointegration analysis

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