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Dependence of Energy Intensity on Economic Growth: Panel Data Analysis of South Asian Economies

Author

Listed:
  • Tahir Mahmood

    (School of Economics, QAU, Islamabad)

  • Shafqut Ullah

    (School of Economics, QAU, Islamabad, Pakistan)

  • Muhammad Mumtaz

    (Department of Management Sciences, University of Haripur, Pakistan)

Abstract

The dependence of energy intensity (energy/GDP ratio) on the economic growth is studied in details for the panel of South Asian economies. Typically, it is assumed that for the technological advanced developed economies a negative relationship between energy intensity and economic growth is valid due to declining trends of energy intensity and in developing economies positive relationship between energy intensity and economic growth is valid. However, if the trend effects are removed, the growth effects may not be energy saving in under developed world. This is the main hypothesis of this study. In order to test this hypothesis, we use de-trend energy intensity (trend effect is removed). We found positive relationship between de-trended energy intensity and economic growth for the panel of underdeveloped south Asian economies. These results suggest that the energy saving options for south Asian countries are very small. Therefore, we find the cost of converting energy into GDP high in the developing economies of south Asia.

Suggested Citation

  • Tahir Mahmood & Shafqut Ullah & Muhammad Mumtaz, 2021. "Dependence of Energy Intensity on Economic Growth: Panel Data Analysis of South Asian Economies," International Journal of Energy Economics and Policy, Econjournals, vol. 11(2), pages 234-239.
    • Handle: RePEc:eco:journ2:2021-02-30
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    References listed on IDEAS

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    Cited by:

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    2. Zeinab Zanjani & Pedro Macedo & Isabel Soares, 2021. "Investigating Carbon Emissions from Electricity Generation and GDP Nexus Using Maximum Entropy Bootstrap: Evidence from Oil-Producing Countries in the Middle East," Energies, MDPI, vol. 14(12), pages 1-22, June.
    3. Destek, Mehmet Akif & Aydın, Sercan, 2021. "An Empirical Note on Tourism and Sustainable Development Nexus," MPRA Paper 114219, University Library of Munich, Germany.

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    More about this item

    Keywords

    Energy intensity; economic growth; Energy savings.;
    All these keywords.

    JEL classification:

    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • Q00 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - General
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

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