Human capital and export diversification as new determinants of energy demand in the United States
By Muhammad Shahbaz, Giray Gozgor, Shawkat Hammoudeh. Energy Economics, 2019
179 citations recorded by the source corpus.
This paper investigates how education and export diversification contribute to energy demand by also incorporating the role of natural resource, oil prices and income in driving energy demand function for the United States (U.S.) economy. In doing so, we apply the unit root test of Kim and Perron (2009) and the bootstrapping autoregressive-distributed lag (ARDL) cointegration approach developed by McNown etal. (2018), which accommodates the presence of a single unknown structural break in the series. The empirical results confirm that the variables are cointegrated in a long-run relationship. Education is negatively linked to energy demand, and export diversification also decreases this demand in the long-run. On the other hand, economic growth increases energy consumption, while oil prices reduce energy demand in the long-run. Natural resource production affects energy consumption positively. Further, the Vector Error Correction Mechanism (VECM)'s Granger causality analysis reveals a feedback effect between education and energy demand. Export diversification causes energy demand, and in return, energy demand causes export diversification. A bidirectional causality also exists between economic growth and energy demand. The paper also discusses the potential implications of the results.
Subfields: Economics and Econometrics, Pollution, Renewable Energy, Sustainability and the Environment
View Paper: https://www.semanticscholar.org/paper/85854713911a14662b06abee10856162c123ed7a
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
- Muhammad Shahbaz
- Avik Sinha
- Umer Shahzad
- Buhari Doğan
- Z. Fareed
- Shawkat Hammoudeh
- Giray Gozgor
- P. K. Adom
In Pollution
- Avik Sinha
- Muhammad Shahbaz
- Umer Shahzad
- Shawkat Hammoudeh
- Buhari Doğan
- P. K. Adom
- Giray Gozgor
- Z. Fareed
In Renewable Energy, Sustainability and the Environment
- Avik Sinha
- Muhammad Shahbaz
- Umer Shahzad
- Shawkat Hammoudeh
- Giray Gozgor
- P. K. Adom
- Buhari Doğan
- Z. Fareed
Citations in the corpus
- The technical decomposition of carbon emissions and the concerns about FDI and trade openness effects in the United States (2019, background): “Policies that promote export quality and export diversification can reduce the production of highly energy-intensive products (Apergis et al., 2018; Fang et al., 2019; Gozgor and Can, 2017; Shahbaz et al., 2019).”
- Does Export product diversification help to reduce energy demand: Exploring the contextual evidences from the newly industrialized countries (2021, background): “However, this segment of the results also contradicts the findings of Shahbaz et al. (2019b) in the case of the US.”