Energy consumption and GDP: causality relationship in G-7 countries and emerging markets

By Ugur Soytas, Ramazan Sari. 2003

1,174 citations recorded by the source corpus.

The causality relationship between energy consumption and income is a well-studied topic in energy economics. This paper studies the time series properties of energy consumption and GDP and reexamines the causality relationship between the two series in the top 10 emerging markets--excluding China due to lack of data--and G-7 countries. We discover bi-directional causality in Argentina, causality running from GDP to energy consumption in Italy and Korea, and from energy consumption to GDP in Turkey, France, Germany and Japan. Hence, energy conservation may harm economic growth in the last four countries.

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

View Paper: https://www.semanticscholar.org/paper/545a036bc7de45f48b7befd5e9ee56f52e074b59

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Citations in the corpus

Energy consumption and GDP in developing countries: A cointegrated panel analysis (2005, background): “Soytas and Sari (2003) similarly estimate the causal relationships for emerging markets for the period 1950–1992.”
Dynamics of Electricity Consumption, Oil Price and Economic Growth: Global Perspective (2017, background): “22 those of Streimikiene and Kasperowicz (2016), Tang et al. (2016), and Rafindadi and Ozturk (2016).”
Energy consumption and economic growth: The case of oil exporting countries (2007, neutral): “E-mail address: mmehrara@ut.ac.ir. more than two variables in the cointegration relationship (see, e.g. Masih and Masih, 1996, 1997, 1998; Yang, 2000a, b; Stern, 2000; Asafu-Adjaye, 2000; Ghosh, 2002; Soytas and Sari, 2003; Ghali and El-Sakka, 2004; Oh and Lee, 2004).”
The causal relationship between energy consumption and economic growth in Lebanon (2012, background): “The main trend tends to be a bivariate analysis; the two variables being energy consumption and GDP (see inter alia, Altinay and Karagol, 2004; Ghosh, 2002; Soytas and Sari, 2003; Yoo, 2005).”
Renewable and non-renewable energy consumption and economic growth relationship revisited: Evidence from G7 countries (2012, background): “Payne, 2010; Ewing et al., 2007; Lee, 2006; Ozturk, 2010; Payne, 2010; Soytas and Sari, 2003): i) The growth hypothesis refers to a situation in which energy consumption plays a vital role in the economic growth process directly and/or as a complement to capital and labor.”
The relationship between disaggregate energy consumption and industrial production in the United States: An ARDL approach (2008, background): “…Yu and Hwang (1984), Yu and Choi (1985), Erol and Yu (1987) for the case of the US, Masih and Masih (1996) for Malaysia, Singapore and Philippines, Soytas and Sari (2003) for nine countries including the US, Asafu-Adjaye (2000) for Indonesia and India, Altinay and Karagol (2004) for Turkey,…”
Electricity consumption and economic growth: evidence from Turkey (2005, background): “For example, Ghosh (2002), Soytas and Sari (2003), Shiu and Lam (2004), and Yoo (2005) among others have focused just on the directionality of causality.”
Energy Consumption and Economic Growth Nexus: Evidence from Developed Countries in Europe (2014, background): “Tugcu et al. (2012) classify this literature according to the consumed energy type.”