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Energy Consumption and Economic Growth in Sweden: A Leveraged Bootstrap Approach, 1965-2000

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  • Hatemi, A.
  • Irandoust, M.

Abstract

The causal interaction between energy consumption, real activity and the prices in the Swedish economy is investigated over the period 1965-2000. The leveraged bootstrap simulation technique is used to generate more reliable critical values for tests of Granger causality between integrated variables. The estimation results reveal that energy consumption does not cause economic activity but rather it is caused by economic activity. Also we find that prices cause both economic activity and energy consumption without feedback causal relationship from these variables. The policy implications of these causal findings are explained.

Suggested Citation

  • Hatemi, A. & Irandoust, M., 2005. "Energy Consumption and Economic Growth in Sweden: A Leveraged Bootstrap Approach, 1965-2000," International Journal of Applied Econometrics and Quantitative Studies, Euro-American Association of Economic Development, vol. 2(4), pages 87-98.
    • Handle: RePEc:eaa:ijaeqs:v:2:y2005:i:4_6
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    Cited by:

    1. Andreas Georgantopoulos, 2012. "Electricity Consumption and Economic Growth: Analysis and Forecasts using VAR/VEC Approach for Greece with Capital Formation," International Journal of Energy Economics and Policy, Econjournals, vol. 2(4), pages 263-278.
    2. Mensah, Justice Tei, 2014. "Carbon emissions, energy consumption and output: A threshold analysis on the causal dynamics in emerging African economies," Energy Policy, Elsevier, vol. 70(C), pages 172-182.
    3. Rohin Anhal, 2013. "Causality between GDP, Energy and Coal Consumption in India, 1970-2011: A Non-parametric Bootstrap Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 3(4), pages 434-446.
    4. José Alberto Fuinhas & Matheus Belucio & Daniela Castilho & Joana Mateus & Rafaela Caetano, 2020. "Tourism and Economic Growth Nexus in Latin America and Caribbean Countries: Evidence from an Autoregressive Distributed Lag Panel," Academica Turistica - Tourism and Innovation Journal, University of Primorska Press, vol. 13(1), pages 21-34.
    5. Apergis, Nicholas & Tang, Chor Foon, 2013. "Is the energy-led growth hypothesis valid? New evidence from a sample of 85 countries," Energy Economics, Elsevier, vol. 38(C), pages 24-31.
    6. Ciarreta Antuñano, Aitor & Zárraga Alonso, Ainhoa, 2007. "Electricity consumption and economic growth: evidence from Spain," BILTOKI 1134-8984, Universidad del País Vasco - Departamento de Economía Aplicada III (Econometría y Estadística).
    7. Thurai Murugan Nathan, Venus Khim-Sen Liew, Wing-Keung Wong & Venus Khim-Sen Liew & Wing-Keung Wong, 2016. "Disaggregated Energy Consumption and Sectoral Outputs in Thailand: ARDL Bound Testing Approach," Journal of Management Sciences, Geist Science, Iqra University, Faculty of Business Administration, vol. 3(1), pages 39-51, March.
    8. Muhammad Shahbaz & Mete Feridun, 2012. "Electricity consumption and economic growth empirical evidence from Pakistan," Quality & Quantity: International Journal of Methodology, Springer, vol. 46(5), pages 1583-1599, August.
    9. José Alberto Fuinhas & Matheus Belucio & Daniela Castilho & Joana Mateus & Rafaela Caetano, 2020. "Tourism and Economic Growth Nexus in Latin America and Caribbean Countries: Evidence from an Autoregressive Distributed Lag Panel," Academica Turistica - Tourism and Innovation Journal, University of Primorska Press, vol. 13(1), pages 21-34.
    10. Yildirim, Ertugrul & Aslan, Alper, 2012. "Energy consumption and economic growth nexus for 17 highly developed OECD countries: Further evidence based on bootstrap-corrected causality tests," Energy Policy, Elsevier, vol. 51(C), pages 985-993.
    11. Renato Santiago & José Alberto Fuinhas & António Cardoso Marques, 2020. "The impact of globalization and economic freedom on economic growth: the case of the Latin America and Caribbean countries," Economic Change and Restructuring, Springer, vol. 53(1), pages 61-85, February.
    12. Rudra Prakash Pradhan, 2010. "Energy Consumption- Growth Nexus in SAARC Countries: Using Cointegration and Error Correction Model," Modern Applied Science, Canadian Center of Science and Education, vol. 4(4), pages 1-74, April.
    13. Botelho, Vinícius, 2019. "Estimating the economic impacts of power supply interruptions," Energy Economics, Elsevier, vol. 80(C), pages 983-994.
    14. Shahateet, Mohammed Issa & Al-Majali, Khalid Ali & Al-Hahabashneh, Fedel, 2014. "Causality and Cointegration between Economic Growth and Energy Consumption: Econometric Evidence from Jordan," MPRA Paper 59067, University Library of Munich, Germany, revised Oct 2014.
    15. Odhiambo, Nicholas M., 2009. "Energy consumption and economic growth nexus in Tanzania: An ARDL bounds testing approach," Energy Policy, Elsevier, vol. 37(2), pages 617-622, February.
    16. Mustafa SAATC & Yasemin DUMRUL, 2013. "The Relationship Between Energy Consumption and Economic Growth: Evidence From A Structural Break Analysis For Turkey," International Journal of Energy Economics and Policy, Econjournals, vol. 3(1), pages 20-29.
    17. Odhiambo, Nicholas M., 2010. "Energy consumption, prices and economic growth in three SSA countries: A comparative study," Energy Policy, Elsevier, vol. 38(5), pages 2463-2469, May.
    18. Ebrima K. Ceesay & Momodou Mustapha Fanneh, 2019. "Co-Integration Testing of the Relationship between Electricity Consumption and Investment in Senegal," International Journal of Applied Economics, Finance and Accounting, Online Academic Press, vol. 4(2), pages 28-35.
    19. Natalya KETENCİ & Ebru Tomris AYDOĞAN, 2019. "Determinants of Economic Growth in Turkey in the Presence of Structural Breaks," Sosyoekonomi Journal, Sosyoekonomi Society, issue 27(42).
    20. Lorde, Troy & Waithe, Kimberly & Francis, Brian, 2010. "The importance of electrical energy for economic growth in Barbados," Energy Economics, Elsevier, vol. 32(6), pages 1411-1420, November.
    21. Asuamah Yeboah, Samuel, 2018. "Econometric modelling of the link between investment and electricity consumption in Ghana," MPRA Paper 89789, University Library of Munich, Germany.
    22. Laurine Chikoko & Tawedzerwa Ngundu & Kennedy Kupeta, 2018. "Economic Growth and Electricity Consumption in a Multivariate Framework: A Case of Zimbabwe 1980 to 2016," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 14(5), pages 20-33, OCTOBER.
    23. Kayhan, Selim & Adiguzel, Uğur & Bayat, Tayfur & Lebe, Fuat, 2010. "Causality Relationship between Real GDP and Electricity Consumption in Romania (2001-2010)," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 169-183, December.
    24. Salahuddin, Mohammad & Gow, Jeff, 2014. "Economic growth, energy consumption and CO2 emissions in Gulf Cooperation Council countries," Energy, Elsevier, vol. 73(C), pages 44-58.

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    More about this item

    Keywords

    Energy Consumption; Economic Growth; Leveraged Bootstrap Technique; Sweden;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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