Energy consumption and economic growth: Parametric and non-parametric causality testing for the case of Greece

By Theologos Dergiades, G. Martinopoulos, Lefteris Tsoulfidis. Energy Economics, 2011

146 citations recorded by the source corpus.

The objective of this paper is to contribute to the understanding of the linear and non-linear causal linkages between total energy consumption and economic activity, making use of annual time series of Greece for the period 1960-2008. Two are the salient features of our study: first, the total energy consumption has been adjusted for qualitative differences among its constituent components through the thermodynamics of energy conversion. In doing so, we rule out the possibility of a misleading inference due to aggregation bias. Second, the investigation of the causal linkage between economic growth and the adjusted for quality total energy consumption is conducted within a non-linear context. Our empirical results reveal significant unidirectional both linear and non-linear causal linkages running from total useful energy to economic growth. These findings may provide valuable information for the contemplation of more effective energy policies with respect to both the consumption of energy and environmental protection.

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

View Paper: https://www.semanticscholar.org/paper/6a25382fc168bc557ee3a109833ff466c95da126

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Citations in the corpus

The energy-growth nexus in Thailand: Does trade openness boost up energy consumption? (2015, methodology): “[44] applied the parametric and non-parametric causality test to reexamine the direction of causal relationship between energy consumption and”
Interaction between oil and US dollar exchange rate: nonlinear causality, time-varying influence and structural breaks in volatility (2018, methodology): “In addition, some results of DP test show larger statistic to reject the null hypothesis than that of HJ test (such as Dergiades, Martinopoulos, and Tsoulfidis 2013), which suggest that the practical application of DP test is not always as good as its theoretical analysis.”
The CO2-Growth nexus revisited: A nonparametric analysis for G7 economies over nearly two centuries (2017, unknown): “…techniques have also been used to investigate the causal relationships between energy consumption and economic growth (e.g. Chiou-Wei et al., 2008; Cheng-Lang et al., 2010; Dergiades et al., 2013). employing techniques having low power while the underlying processes may, in fact, be nonlinear.”
Applied econometrics and implications for energy economics research (2015, background): “A small number of studies have tested for nonlinear causality between (dis)aggregated energy consumption and economic growth (Chiou-Wei et al., 2008; Dergiades et al., 2013; Fallahi, 2011; Lee and Chang, 2007; Salamaliki and Venetis, 2013; Yang et al., 2010; Yildirim et al., 2014), between spot and ”
Energy consumption, CO2 emissions and economic growth: an ethical dilemma (2017, background): “), although some studies disentangle the energy usage by energy source, such as, electricity, coal, nuclear and renewables (see, for example, Chiou-Wei et al., 2008; Akinlo, 2009; Apergis and Payne, 2009b; Ghosh, 2009; Eggoh et al., 2011; Chu and Chang, 2012; Dagher and Yacoubian, 2012; Abbas and Ch”