The growth of income and energy consumption in six developing countries


Sari R., Soytas U.

ENERGY POLICY, vol.35, no.2, pp.889-898, 2007 (SCI-Expanded) identifier identifier

  • Publication Type: Article / Article
  • Volume: 35 Issue: 2
  • Publication Date: 2007
  • Doi Number: 10.1016/j.enpol.2006.01.021
  • Journal Name: ENERGY POLICY
  • Journal Indexes: Science Citation Index Expanded (SCI-EXPANDED), Social Sciences Citation Index (SSCI), Scopus
  • Page Numbers: pp.889-898
  • Keywords: energy consumption, economic growth, variance decomposition analyses, MULTIVARIATE COINTEGRATION ANALYSIS, IMPULSE-RESPONSE ANALYSIS, EXPORT-LED GROWTH, UNIT-ROOT, ECONOMIC-GROWTH, REAL INCOME, TIME-SERIES, CAUSAL RELATIONSHIP, TEMPORAL CAUSALITY, GDP
  • Middle East Technical University Affiliated: Yes

Abstract

This paper reexamines the inter-temporal link between energy consumption and income in six developing countries with diverse economic backgrounds and energy statistics, in a production function framework. We employ the generalized variance decompositions and generalized impulse response techniques to see if the growth of income and energy consumption contains considerable information to predict each other. In all countries, energy appears as an essential factor of production. Results indicate that energy may be a relatively more important input than labor and/or capital in some countries. Hence, neutrality of energy does not seem to hold. (c) 2006 Elsevier Ltd. All rights reserved.