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Determinants of Energy Consumption In Newly Industrialised Countries of Asia

Author

Listed:
  • Karen Fernandes

    (Goa Business School, Goa University, Taleigao, Goa, India.)

  • Y. V. Reddy

    (Goa Business School, Goa University, Taleigao, Goa, India.)

Abstract

This study focuses on identifying the factors that lead to energy consumption in select newly industrialized countries of Asia such as China, India, Indonesia, Malaysia, Philippines and Thailand. GDP, Exchange rate, industrialization, urbanization and trade openness are the select factors identified and such data is obtained for a period from 1980 to 2018. To check for stationarity, ADF unit root test and PP unit root test is employed where all variables are found to be stationary at first difference. OLS regression is applied to identify which factor has an impact on energy consumption. Besides, Johansen cointegration test to establish long run relationship and VECM is employed, where all variables were found to be integrated in the long run however VECM indicated that for China and Malaysia energy consumption is able to achieve equilibrium after a shock in the previous period. To determine causal links between variables, Toda Yamamoto Causality test is applied. Results indicate that industrialization, exchange rate, financial development and trade openness causes energy consumption in China. However, in India and Thailand only industrialization causes energy consumption. GDP causes energy consumption in Indonesia and trade openness causes energy consumption in Malaysia.

Suggested Citation

  • Karen Fernandes & Y. V. Reddy, 2021. "Determinants of Energy Consumption In Newly Industrialised Countries of Asia," International Journal of Energy Economics and Policy, Econjournals, vol. 11(1), pages 93-100.
    • Handle: RePEc:eco:journ2:2021-01-13
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    Citations

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    Cited by:

    1. Abdulrahman M. Alsobhi, 2023. "Using Artificial Neural Networks to Recognize the Determinants of Energy Consumption in Saudi Arabia," International Journal of Energy Economics and Policy, Econjournals, vol. 13(3), pages 489-493, May.
    2. Ming Fang & Chiu-Lan Chang, 2022. "Nexus between fiscal imbalances, green fiscal spending, and green economic growth: empirical findings from E-7 economies," Economic Change and Restructuring, Springer, vol. 55(4), pages 2423-2443, November.
    3. Chishti, Muhammad Zubair & Dogan, Eyup & Zaman, Umer, 2023. "Effects of the circular economy, environmental policy, energy transition, and geopolitical risk on sustainable electricity generation," Utilities Policy, Elsevier, vol. 82(C).
    4. Mohammed Galal Abdallah Mostafa & Mousa Gowfal Selmey Gowfal Selmey, 2022. "Determinants of Energy Consumption in Egypt New Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 12(2), pages 175-180, March.
    5. Kunofiwa Tsaurai, 2021. "Macroeconomic Determinants of Energy Consumption in BRICS (Brazil, Russia, India, China, South Africa)," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 405-423.
    6. Yilmaz Bayar & Mehmet Hilmi Ozkaya & Laura Herta & Marius Dan Gavriletea, 2021. "Financial Development, Financial Inclusion and Primary Energy Use: Evidence from the European Union Transition Economies," Energies, MDPI, vol. 14(12), pages 1-14, June.

    More about this item

    Keywords

    Energy consumption; OLS regression; VECM; Toda Yamamoto causality;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O20 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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