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The energy consumption-real GDP nexus revisited: Empirical evidence from 93 countries

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  • Narayan, Paresh Kumar
  • Popp, Stephan

Abstract

In this paper, we analyse the long-run relationship between energy consumption and real GDP for 93 countries. We find mixed results on the impact of energy consumption on real GDP, with greater evidence at the country level supporting energy consumption having a negative causal effect on real GDP. For the G6 panel of countries, we find significant evidence that energy consumption negatively Granger causes real GDP. This means that for countries where energy consumption has a negative long-run causal effect on real GDP, energy conversation policies should not retard economic growth. We identify these countries and regional panels. We argue that these countries/regions should play a greater role in reducing carbon dioxide emissions.

Suggested Citation

  • Narayan, Paresh Kumar & Popp, Stephan, 2012. "The energy consumption-real GDP nexus revisited: Empirical evidence from 93 countries," Economic Modelling, Elsevier, vol. 29(2), pages 303-308.
    • Handle: RePEc:eee:ecmode:v:29:y:2012:i:2:p:303-308
    DOI: 10.1016/j.econmod.2011.10.016
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    References listed on IDEAS

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    More about this item

    Keywords

    Energy consumption; Real GDP; Panel causality;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

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    Access and download statistics

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