The relationship between disaggregate energy consumption and industrial production in the United States: An ARDL approach


Sari R. , Ewing B. T. , SOYTAŞ U.

ENERGY ECONOMICS, vol.30, no.5, pp.2302-2313, 2008 (Journal Indexed in SSCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 30 Issue: 5
  • Publication Date: 2008
  • Doi Number: 10.1016/j.eneco.2007.10.002
  • Title of Journal : ENERGY ECONOMICS
  • Page Numbers: pp.2302-2313

Abstract

We re-examine the relationship between disaggregate energy consumption and industrial output, as well as employment, in the United States using the autoregressive distributed lag (ARDL) approach developed by Pesaran and Pesaran [Pesaran, M.H., Pesaran, B., 1997. Working with Microfit 4.0. Camfit Data Ltd, Cambridge] and Pesaran, Shin and Smith [Pesaran, M.H., Shin, Y., Smith, R.J., 2001. Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics 16; 289-326] In particular, we focus attention on the following energy consumption variables: coal, fossil fuels, conventional hydroelectric power, solar energy, wind energy, natural gas, wood, and waste. The sample period covers 2001:1-2005:6. Our results imply that real output and employment are long run forcing variables for nearly all measures of disaggregate energy consumption. (C) 2007 Elsevier B.V All rights reserved.