Does energy consumption cause economic growth? Evidence from a systematic study of over 100 countries

Jaruwan Chontanawat*, Lester C. Hunt, Richard Pierse

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract

Energy arguably plays a vital role in economic development. Hence many studies have attempted to test for causality between energy and economic growth; however, no consensus has emerged. This paper, therefore, tests for causality between energy and GDP using a consistent data set and methodology for over 100 countries. Causality from energy to GDP is found to be more prevalent in the developed OECD countries compared to the developing non-OECD countries; implying that a policy to reduce energy consumption aimed at reducing emissions is likely to have greater impact on the GDP of the developed rather than the developing world.

Original languageEnglish
Pages (from-to)209-220
Number of pages12
JournalJournal of Policy Modeling
Volume30
Issue number2
DOIs
Publication statusPublished - Mar 2008

Keywords

  • Causality
  • Development
  • Energy
  • GDP
  • Modeling

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