Electricity consumption and economic growth in nigeria. Energy consumption, carbon emissions, and economic growth. Economic growth in east china is energydependent to a great extent, and relies on the consumption of the energy more than the west china. An application of auto regressive distributed lag ardl approach to cointegration results suggest that energy consumption is positively and significantly impacted by proportion of urban population in total population, while the same is negatively and significantly impacted by financial development, economic growth and proportion of industrial. A weak effect of economic growth on energy consumption is noted for the lower quantiles of economic growth in. Michael, barbados article info abstract article history.
Investigating the energyeconomic growthgovernance nexus. Energy efficiency and economic growth climate institute. This implies that more energy consumption will increase economic growth. The study recommended that this sector should be given more relevance even by the opportunities laden in the sector to increase economic growth. Although the existence of a relationship between energy consumption and economic growth is now reasonably established in the literature, the direction of causation, that is, whether economic growth leads to energy consumption or energy consumption leads. Carbon dioxide emissions, economic growth, and selected. Project muse energy consumption, economic growth and. Renewable energy consumption and economic growth in nine. Economic growth in east china is energy dependent to a great extent, and relies on the consumption of the energy more than the west china. Eia projects world energy consumption will increase 56% by. To examine the linkage, this paper uses the autoregressive distributed lag ardl bounds testing approach of cointegration test and vector errorcorrection models to test the causal. The economy seem to depend much on energy consumption for growth, thus, any policy to reduce energy consumption will have an adverse impact on economic growth. Our results confirm the inconclusive nature of a causality relationship between energy consumption and. Economic growth energy consumption granger causality generalized impulse response function this paper investigates the existence and direction of granger causality between economic growth, energy consumption, and carbon emissions in china, applying a multivariate model of economic growth, energy use, carbon emissions, capital and urban population.
Energy and economy chapter 6 388 executive summary the three most basic drivers of energy demand are economic activity, population, and technology. Does more energy consumption support economic growth. An increase in energy consumption is a driving force for enhancing an economic growth, and the supply of electricity a form of energy, its consumption is critical for sustainable economic growth 3. Gdp per capita elasticity of carbon dioxide emissions is estimated.
Relationship between energy consumption and economic growth in. Chinas economic and energy situation chinas changing economy plays an important role in this respect. Also, china overtook the us to become the worlds biggest energy user and worlds. Recently, jones and romer 2010 introduced a set of new kaldor facts for growth economics. Pdf this study investigates the causal relationship between energy consumption and economic performance for the total economy as well as. Factors affecting linkage between energy and growth 4. The growth rate of electricity consumption has important implications for business and public policy.
Chinas economic and energy situation european commission. This research tests this interrelationship between variables using the johansen cointegration technique. The findings reveal a unidirectional causal relationship between total energy consumption and economic growth running from total energy consumption to economic growth. Most of this growth will come from nonoecd nonorganization for economic cooperation and development countries, where demand is driven by strong economic growth. Economic growth, energy consumption and carbone dioxide.
The results showed the long run causal relationship between energy consumption and openness. Energy consumption, economic growth and co2 emissions in. Unlike these past studies, this paper adopts the selected types of fossil energy consumption instead of the total fossil energy consumption as explanatory variables, so. The causal relationship between energy consumption and economic growth in g7 countries and emerging markets was studied by soytas and sari 2003, whereas lee 2006 analyzed the cases of 11 major industrialized. The aim of this study is to investigate relationship between economic growth and energy consumption in pakistan, india, bangladesh and sri lanka by using instrumental variable regression analysis.
The result indicates bidirectional causality between nuclear energy consumption and economic growth in short run while unidirectional causality from nuclear energy consumption to economic growth in long run. Renewable energy and nuclear power are the worlds fastestgrowing energy sources, each increasing 2. The result shows that variables were cointegrated as null hypothesis was rejected at 1 % level of significance. Dynamic impact of urbanization, economic growth, energy. The direction of the causality between energy consumption and income is an important issue in the fields of energy economics, economic growth, and policies toward energy use. Eias recently released international energy outlook 20 ieo20 projects that world energy consumption will grow by 56% between 2010 and 2040, from 524 quadrillion british thermal units btu to 820 quadrillion btu. In all, the results indicate bidirectional causality in the united states, unidirectional causality from growth to energy consumption for japan, italy and france, and unidirectional running from energy consumption to economic growth in. The study evaluates thecausal nexus between energy consumption andnigerias economic growth for the period of 1975 to 2010. Electricity consumption and economic growth in emerging. Industry agenda energy for economic growth energy vision.
This study aims to fill that gap by analyzing the relationship between energy consumption and economic on a panel of 19 comesa countries. Countrylevel time series data of energy consumption and economic growth are pooled and used to estimate the model. Rising oil consumption reflects rapid economic growth in these countries. Europe regardless of their development or energy independence. The relationship between energy consumption and economic.
Does more energy consumption support economic growth in net energy importing countries. Longerterm trends in economic growth for a particular economy depend on underlying demographic and productivity trends, which in. Our empirical results show that there exists bidirectional causal relationship between energy consumption and economic growth in the longrun. Study on relationship of energy consumption and economic. It has become the common goal of countries worldwide to address. Commercial and personal transportation activities, in particular, require large amounts. Relationships between energy consumption and economic growth.
Energy consumption economic growth subsaharan africa panel cointegration this study tests the relationship between energy consumption and economic growth in subsaharan africa, using a panel cointegration approach. Thus, we adopt this new technique and through this papers conclusion hope to distinguish a clear pattern between energy consumption and economic growth in an individual country such as taiwan. The energy consumptioneconomic growth nexus is a research topic that was widely studied for both developed and developing countries and for that the empirical evidence produced mixed and con. Incorporated as a foundation in 1971 and based in geneva, switzerland, the world. In this study, energy consumption is further disaggrigated into oil, gas and electricity consumption in order to present more robust analysis. Hence, many studies have attempted to look for the direction of causality between energy consumption ec, economic growth gdp and co2 emissions. The importance of electrical energy for economic growth in. Mar 17, 2016 the objective of this paper is to examine the dynamic impact of urbanization, economic growth, energy consumption, and trade openness on co 2 emissions in nigeria based on autoregressive distributed lags ardl approach for the period of 19712011. Secondary timeseries data were analyzed using cointegration and. The study recommended that this sector should be given more relevance even by the opportunities laden. Prominent among the policy recommendation, is the need to strengthen the effectiveness of energy generating. Energy consumption, economic growth and co2 emissions. An analysis of energy consumption and economic growth of cobb. But for the whole of the eu, in the shortterm, there was no clear relationship between economic growth and energy consumption.
The results show that total energy consumption is a oneway causal relationship between economic growths in china, economic growth has a strong dependence. Q e evaluated regression model includes growth rates of energy consumption and growth rates of gross fixed capital in real pric es. However, energy consumption is the major source of greenhouse gases, which can significantly affect the balance of the global ecosystem. Oil consumption and economic growth nexus in tanzania co integration and causality analysis benedict baraka stambuli assistant lecturer, tanzania public service college, p.
Pdf economic growth and energy consumption for oecd countries. Q e estimation of gdp equation indicated that that the energy consumption is posi tive related to the economic growth. Economic growth and energy consumption nexus in developing. Energy consumption and economic growth modelling in sadc.
On the other hand, if unidirectional causality runs from energy consumption to economic growth, it means that economic growth is dependent on. Also, the study shows an evidence of bidirectional causal relationship between electricity consumption and economic growth. Current and expected levels of economic growth heavily influence global oil demand and oil prices. Thus, energy consumption can directly influence sustainable economic development, the inverse relationship not being valid, but the use of. Economic growth and energy consumption in an emerging economy. Fossil energy is the material basis of human survival, economic development and social progress. Economic growth and energy consumption in an emerging. We also estimate this relationship for three regional panels. Most of the studies dealing with the energy consumptiongrowth nexus focus on. Energy consumption, economic growth, trade and financial development nexus 662 to imports. In other words, both energy consumption and economic growth are neutral with respect to each other. Electricity consumption and economic growth in emerging economies. Finally, granger causality model was conducted, and the results showed that population has an effect on energy consumption and energy consumption contributes to economic growth in malaysia. Pdf economic growth and energy consumption for oecd.
It has become the common goal of countries worldwide to. Heterogeneous panel cointegration test reveals there is a longrun equilibrium relationship between real gdp and energy consumption. Granger causality test conducted showed strong evidence of unidirectional causal relationship between electric energy consumption and economic growth, with direction of causality running from electric energy consumption to income or gdp growth. Pdf the aim of this study is to investigate relationship between economic growth and energy consumption in pakistan, india, bangladesh and.
Renewables were seen to play a significant role in economic. In case of economies facing a decoupling of growth from energy consumption, this tradeoff doesnt exist and the reforms targeting a structural. Abiodun adewale adegboye1 obafemi awolowo university, nigeria. Electricity consumption and economic growth stanford law school. Drake, an econometric study of carbon dioxide co2 emissions, energy consumption, and economic growth of pakistan, international journal of energy sector management, 2012, 6, 4, 518crossref.
The purpose of this paper is to investigate the shortrun and longrun causality between renewable energy re consumption and economic growth eg in nine oecd countries from the period between 1982 and 2011. Energy consumption, economic growth, trade and financial. Oct 05, 2012 in this study, energy consumption is further disaggrigated into oil, gas and electricity consumption in order to present more robust analysis. The impact of energy consumption on economic growth. Commercial and personal transportation activities, in particular, require large amounts of oil and are directly tied to economic conditions. In this paper, we attempt to summarize what we know about energy and economic growth in a similar set of stylized facts with the intention of informing the development of models of energy and economic growth. The objective of this paper is to examine the dynamic impact of urbanization, economic growth, energy consumption, and trade openness on co 2 emissions in nigeria based on autoregressive distributed lags ardl approach for the period of 19712011. The relationship between energy consumption and economic growth is becoming increasingly close. Economic growth and energy consumption in 12 european.
Oil consumption and economic growth nexus in tanzania co. The paper asks whether regime shift has influenced causal relation between energy consumption and economic. Meanwhile, there are unidirectional causality runs from employment ratio to gdp in the short run. The relationship between energy consumption and economic growth has been a fascinating question since energy crisis in 70s of last century. About the world economic forum the world economic forum is an independent international. In 2010 china has passed japan on the list of the worlds largest economies, taking the second position behind the united states.
The importance of electrical energy for economic growth in barbados troy lordea. For example, both ozturk 2010 and payne 2010 conduct metastudies and conclude that economic output and energy consumption are linked, although the empirical evidence of causality, that is whether energy consumption drives economic output or vice versa, is mixed. This article describes altered trends in the relationship between growth in economic activity and electricity use and offers hypotheses to explain them. Relationships between energy consumption and economic. The energy consumption and economic growth nexus in top ten. Energy consumptioneconomic growth relationship and carbon. The objective of this paper is to help project teams better articulate the link between their projects and the world bank groups twin corporate goals of reducing poverty and boosting shared prosperity.
Energy consumption, economic growth and co 2 emissions in middle east and north african countries this article extends the recent findings of liu 2005, ang 2007, apergis et al. We consider the possibility of a linear effect and a nonlinear effect of energy consumption on economic growth. Environmental implications glossary capital there are two meanings in economics. Thus, it is pertinent that this sector should be given more relevance even by exploiting the opportunities laden in the sector to increase economic growth. Pdf energy consumption and nigerian economic growth. This article examines the twoway linkages between energy consumption and economic growth using data from tunisia over the period 19742011. With the exception of coal which was positive, a negative relationship was noted. This study analyses the relationship between energy consumption and economic growth for 119 countries during the period of 19702015, classified into four groups regarding to the world bank income.