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The relationship between energy consumption and GDP in emerging countries

Al-Mulali, Usama and Mohammed, Abdul Hakim (2015) The relationship between energy consumption and GDP in emerging countries. International Journal Of Energy Sector Management, 9 (1). pp. 77-93. ISSN 1750-5836

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Official URL: http://dx.doi.org/10.1108/IJESM-04-2013-0006

Abstract

Purpose – This paper aims to investigate the relationship between gross domestic product (GDP) by sector and energy consumption by type in 16 emerging countries. Design/methodology/approach – The panel model was utilized taking the period 1980-2010. Findings – The results revealed that GDP by sector and energy consumption by type are cointegrated. Moreover, the Granger causality concluded a bi-directional causal relationship between oil, natural gas and renewable energy consumption and the value of the manufacturing, industrial and services sector. Furthermore, a bi-directional causal relationship was also found between coal consumption and the value of the services sector. Furthermore, a one-way causal relationship was found from oil consumption to the value of the agriculture sector, the value of the agriculture sector to coal consumption, and coal consumption to the value of the manufacturing and the industrial sectors. Practical implications – This study recommended that these countries should increase their renewable energy consumption to achieve their GDP growth. Originality/value – This study is different from the previous studies, as it disaggregated the GDP into four sectors, namely, agriculture, manufacturing, industrial and the services sector. In addition, this study will disaggregate energy consumption into oil consumption, gas consumption, coal consumption and electricity consumption.

Item Type:Article
Uncontrolled Keywords:dynamic regression, econometric, emerging countries, energy consumption by type, GDP by sector
Subjects:A General Works
Divisions:Geoinformation and Real Estate
ID Code:58981
Deposited By: Haliza Zainal
Deposited On:04 Dec 2016 12:07
Last Modified:19 Feb 2017 15:11

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