Structural break, unit root, and the causality between energy consumption and GDP in Turkey

Revisiting the environmental Kuznets curve in a global economy

“…economic growth and energy consumption and, economic growth and CO 2 emissions in case of Turkey (see Ozturk, [6]) for literature survey on energy-growth nexus). For example; Altinay and Karagol [7] investigated the direction of causality between energy consumption and economic growth. They applied unit root test to examine stationarity properties of the variables.…”

An analysis of oil production by OPEC countries: Persistence, breaks, and outliers

“…1 Specifically, this study examines the degree of persistence, potential breaks and outliers of oil production for each OPEC member country within a fractional integration modelling framework. In particular, two important features commonly observed in oil production data are the persistence across time (Lien and Root, 1999;Kang et al 2009) and breaks in production (Altinay and Karagol, 2004;Lee and Chang, 2005;Rao and Rao, 2009). Modelling the degree of persistence is important in that it can reflect the stability of production in a particular country and given the importance of oil production to other sectors of an economy the persistence of such shocks may be transmitted to other sectors of the economy and macroeconomic aggregates as well.…”

Energy Consumption and GGP in the OECD Countries: A Causality Analysis

“…Strong causality was also established in both models to further engender the reason to suggest strong relationship between the variables. 3 Lee (2005) and Lee and Lee (2010) found lag of 2 years to be optimal. 4 The ECTs used for the OLS and GMM estimation are lagged by a year in which for total energy demand model and for electricity demand model.…”

“…The findings suggest that uni-directional causality runs from GDP to energy consumption thereby suggesting a reasonable point for policy makers to implement energy conservation measures without affecting the economies negatively. Hsiao's criterion was used by Altinay and Karagol (2004) to test for causality between GDP and energy consumption in Turkey from 1950 to 2000. The neutrality hypothesis was however established as they found no causality between the two variables.…”