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Nuclear energy consumption, oil consumption and economic growth in G-6 countries: Bootstrap panel causality test

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  • Chu, Hsiao-Ping
  • Chang, Tsangyao

Abstract

This study applies bootstrap panel Granger causality to test whether energy consumption promotes economic growth using data from G-6 countries over the period of 1971–2010. Both nuclear and oil consumption data are used in this study. Regarding the nuclear consumption-economic growth nexus, nuclear consumption causes economic growth in Japan, the UK, and the US; economic growth causes nuclear consumption in the US; nuclear consumption and economic growth show no causal relation in Canada, France and Germany. Regarding oil consumption-economic growth nexus, we find that there is one-way causality from economic growth to oil consumption only in the US, and that oil consumption does not Granger cause economic growth in G-6 countries except Germany and Japan. Our results have important policy implications for the G-6 countries within the context of economic development.

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  • Chu, Hsiao-Ping & Chang, Tsangyao, 2012. "Nuclear energy consumption, oil consumption and economic growth in G-6 countries: Bootstrap panel causality test," Energy Policy, Elsevier, vol. 48(C), pages 762-769.
    • Handle: RePEc:eee:enepol:v:48:y:2012:i:c:p:762-769
    DOI: 10.1016/j.enpol.2012.06.013
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