IDEAS home Printed from https://ideas.repec.org/a/sae/enejou/v35y2014i4p101-134.html
   My bibliography  Save this article

Is There Really Granger Causality between Energy Use and Output?

Author

Listed:
  • Stephan B. Bruns
  • Christian Gross
  • David I. Stern

Abstract

We carry out a meta-analysis of the very large literature on testing for Granger causality between energy use and economic output to determine if there is a genuine effect in this literature or whether the large number of apparently significant results is due to publication or misspecification bias. Our model extends the standard meta-regression model for detecting genuine effects in the presence of publication biases using the statistical power trace by controlling for the tendency to over-fit vector autoregression models in small samples. Granger causality tests in these over-fitted models have inflated type I errors. We cannot find a genuine causal effect in the literature as a whole. However, there is a robust genuine effect from output to energy use when energy prices are controlled for.

Suggested Citation

  • Stephan B. Bruns & Christian Gross & David I. Stern, 2014. "Is There Really Granger Causality between Energy Use and Output?," The Energy Journal, , vol. 35(4), pages 101-134, October.
    • Handle: RePEc:sae:enejou:v:35:y:2014:i:4:p:101-134
    DOI: 10.5547/01956574.35.4.5
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.5547/01956574.35.4.5
    Download Restriction: no
    File URL: https://libkey.io/10.5547/01956574.35.4.5?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. p-Curve: Replicable vs. Non-Replicable Findings
      by noreply@blogger.com (David Stern) in Stochastic Trend on 2016-06-15 10:18:00
    2. Error in 2014 Energy Journal Paper
      by noreply@blogger.com (David Stern) in Stochastic Trend on 2017-07-27 04:58:00
    3. Second Francqui Lecture
      by noreply@blogger.com (David Stern) in Stochastic Trend on 2021-03-24 02:38:00
    4. Stern and Enflo, Energy Economics
      by David Stern in Stochastic Trend on 2013-05-05 13:17:00
    5. Global Energy Use: Decoupling or Convergence?
      by noreply@blogger.com (David Stern) in Stochastic Trend on 2014-12-17 04:46:00
    6. The Extent and Consequences of P-Hacking in Science
      by noreply@blogger.com (David Stern) in Stochastic Trend on 2015-08-09 08:34:00
    7. Wrapping up ARC DP12 Project
      by noreply@blogger.com (David Stern) in Stochastic Trend on 2015-11-15 17:15:00

    More about this item

    Keywords

    Meta-analysis; Granger causality; Energy; Economic growth;
    All these keywords.

    JEL classification:

    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • 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
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:enejou:v:35:y:2014:i:4:p:101-134. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.