Energy Consumption- Growth Nexus in SAARC Countries: Using Cointegration and Error Correction Model

By Rudra Prakash Pradhan. 2010

47 citations recorded by the source corpus.

The paper explores the nexus between energy consumption (oil and electricity) and economic growth in the five SAARC countries over the period 1970-2006. Using cointegration and Error Correction Model (ECM), the paper finds a unidirectional short run and long run causality from oil consumption to economic growth in Bangladesh and Nepal, a unidirectional short run and long run causality from electricity consumption to economic growth in Pakistan and Sri Lanka, a unidirectional short run and long run causality from economic growth to oil consumption in India and Sri Lanka, and a unidirectional causality from economic growth to electricity consumption in India and Nepal. It also finds the bidirectional causality between electricity consumption and economic growth in Bangladesh and between oil consumption and economic growth in Pakistan. The paper at the end suggests that energy and environmental policies should recognize the differences in the energy consumption-growth nexus in order to maintain sustainable economic growth in the region.

Subfields: Economics and Econometrics, Renewable Energy, Sustainability and the Environment

View Paper: https://www.semanticscholar.org/paper/28a76ed91e191756168f94a95c7663fa5ebd63a4

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Citations in the corpus

Dynamics of Electricity Consumption, Oil Price and Economic Growth: Global Perspective (2017, background): “Empirically, the growth hypothesis is empirically confirmed by Murry and Nan (1994), Khan et al. (2007), Pradhan (2010), Das et al. (2012), Tang and Shahbaz (2013), Wolde-Rufael (2014), Iyke (2015) and He et al. (2017).”
Does financial development intensify energy consumption in Saudi Arabia (2017, background): “Over the past decades, the relationship between economic growth and energy consumption has been a topic of academic interest among energy economists, environmental scientists and policy makers in the energy-growth literature (Masih and Masih, 1996, 1998; Mazumder and Marathe, 2007; Karanfil, 2008; O”