Effects of financial development, economic growth and trade on electricity consumption: Evidence from post-Fukushima Japan
By Abdulkadir Abdulrashid Rafindadi, Ilhan Ozturk. 2016
235 citations recorded by the source corpus.
Abstract This study examines the long-run and short-run effects of financial development, economic growth, export, imports and capital on the Japanese energy predicaments as a result of the foregoing energy crisis in the country. To ensure a robust outcome, the study applied the extended Cobb–Douglas production function and used time series data from 1970 to 2012. Following to this, structural break unit root test, ARDL bounds test approach to cointegration and the Johansen cointegration test were applied. In addition, the VECM Granger causality framework was used in determining the causal relationship between the variables. The findings of the study establish that, in the long-run a 1% rise in financial development, economic growth, exports and imports in Japan will exert a significant pressure on the Japanese electricity consumption by 0.2429%; 0.5040%; 0.0921% and 0.2193% respectively. However, capital was found to decline energy consumption in all material respect. In the short-run, the study discovered how a 1% rise in the dynamics of financial development, economic growth, exports and imports to add to the Japanese electricity predicaments by 0.2210%; 0.5840%; 0.0521% and 0.2031% respectively. The existence of the feedback relationship between most of the variables was discovered, while, economic growth, exports, imports, and trade openness were found to Granger-cause electricity consumption. The study advocates the adoption of massive but competitive renewable energy system in Japan. How it should be done and why it should be done are carefully set by this study.
Subfields: Economics and Econometrics, Pollution, Renewable Energy, Sustainability and the Environment
View Paper: https://www.semanticscholar.org/paper/48f449ea0d9a08fad290cdec494416fbef028309
How researchers see this paper
The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.
In Economics and Econometrics
In Pollution
In Renewable Energy, Sustainability and the Environment
Citations in the corpus
- On the nexus of financial development, economic growth, and energy consumption in China: New perspective from a GMM panel VAR approach (2018, background): “…effect either running from financial development to energy consumption (e.g., Sadorsky, 2010; Al-mulali and Lee, 2013; Komal and Abbas, 2015; Rafindadi and Ozturk, 2016; Xu, 2012; Islam et al., 2013, Zhao et al., 2016), or the other way around (e.g., Al-mulali and Binti Che Sab, 2012;…”
- Does financial development influence renewable energy consumption to achieve carbon neutrality in the USA (2021, background): “Rafindadi and Ozturk (2016) also found a positive impact of financial development on energy consumption in Japan for the period 1970–2012.”