entry its deterrence and its accommodation a study of the u s photographic film industry this work set in the new empirical industrial organization framework bresnahan 1987 examines firm level demand based and cost based explanations for entry and accommodation strategies in the u s photographic film industry i first estimate preentry and postentry market structures then using the estimated demand cost and market conduct parameters i show how entry by fuji photo or lack thereof by others is a function of two market structures i also show how market structure and conduct and changes in them over the pre and postentry periods are in turn functions of entry its deterrence and it accommodation

the nexus between financial development and energy consumption in the eu a dynamic panel data analysis abstract the relationship between financial development and energy consumption has newly started to be discussed in energy economics literature this paper investigates this issue in the eu over the period 1990 2011 by using system gmm model no significant relationship is found in the eu27 the empirical results however provide strong evidence of the impact of the financial development on energy consumption in the old members greater financial development leads to an increase in energy consumption regardless of whether financial development stems from banking sector or stock market by contrast we find for the new members that the impact of financial development on energy consumption depends on how financial development is measured using bankindex the impact of financial development displays an inverted u shaped pattern while no significant relationship is detected once it is measured using stockindex

a multivariate cointegrated modelling approach in testing temporal causality between energy consumption real income and prices with an application to two asian ldcs unlike previous studies on the casual relationship between energy consumption and economic growth this paper illustrates how the finding of cointegration i e long term equilibrium relationship between these variables may be used in testing granger causality based on the most recent johansen s multiple cointegration tests preceded by various unit root or nonstationarity tests we test for cointegration between total energy consumption real income and price level of two asian ldcs thailand and sri lanka nonrejection of cointegration between variables rules out granger noncausality and implies at least one way of granger causality either unidirectional or bidirectional secondly by using a dynamic vector error correction model we then analyse the direction of granger causation and hence the within sample grangerexogeneity or endogeneity of each of the variables thirdly the relative strength of the causality is gauged through the dynamic variance decomposition technique by decomposing the total

is the energy led growth hypothesis valid new evidence from a sample of 85 countries abstract the energy growth literature contains a large number of discussions on the causal relationship between energy consumption and economic growth the central debate focuses on whether energy consumption contributes or not to economic growth since it has direct implications for the formulation of strategic policies nevertheless current studies cannot provide a conclusive suggestion due to mixed causality results this inconclusive evidence is potentially attributed to model specifications and the stage of economic development of the countries under investigation hence this study attempts to empirically re investigate the validity of the energy led growth hypothesis using a different model specification and different stages of economic development for 85 selected countries around the globe overall although the causality results are mixed among countries we do find a systematic pattern in particular granger causality models with three and four variables are more likely to support the hypothesis compared to their counterparts that contain only two variables in addition both developed and developing countries are more likely to support the energy led growth hypothesis compared to the less developed or low income countries therefore causality results are very sensitive to the choice of the model specification along with the stages of economic development finally energy conservation policies should only focus on low income countries as these policies may not retard the process of economic growth

the relationship between gdp and electricity consumption in 10 asian countries the purpose of this study is to estimate the relationships between gdp and electricity consumption in 10 newly industrializing and developing asian countries using both single data sets and panel data procedures the empirical results from single data set indicate that the causality directions in the 10 asian countries are mixed while there is a uni directional short run causality running from economic growth to electricity consumption and a bi directional long run causality between electricity consumption and economic growth if the panel data procedure is implemented these empirical findings imply that electricity conservation policies through both rationalizing the electricity supply efficiency improvement to avoid the wastage of electricity and managing demand side to reduce the electricity consumption without affecting the end user benefits could be initiated without adverse effect on economic growth the findings on the long run relationship indicate that a sufficiently large supply of electricity can ensure that a higher level of economic growth

growth and renewable energy in europe a random effect model with evidence for neutrality hypothesis this is an empirical study on the causal relationship between economic growth and renewable energy for 27 european countries in a multivariate panel framework over the period 1997 2007 using a random effect model and including final energy consumption greenhouse gas emissions and employment as additional independent variables in the model empirical results do not confirm causality between renewable energy consumption and gdp although panel causality tests unfold short run relationships between renewable energy and greenhouse gas emissions and employment the estimated cointegration factor refrains from unity indicating only a weak if any relationship between economic growth and renewable energy consumption in europe suggesting evidence of the neutrality hypothesis which can partly be explained by the uneven and insufficient exploitation of renewable energy sources across europe

electricity consumption and economic growth nexus in portugal using cointegration and causality approaches the aim of this paper is to re examine the relationship between electricity consumption economic growth and employment in portugal using the cointegration and granger causality frameworks this study covers the sample period from 1971 to 2009 we examine the presence of a long run equilibrium relationship using the bounds testing approach to cointegration within the unrestricted error correction model uecm moreover we examine the direction of causality between electricity consumption economic growth and employment in portugal using the granger causality test within the vector error correction model vecm as a summary of the empirical findings we find that electricity consumption economic growth and employment in portugal are cointegrated and there is bi directional granger causality between the three variables in the long run with the exception of the granger causality between electricity consumption and economic growth the rest of the variables are also bi directional granger causality in the short run furthermore we find that there is unidirectional granger causality running from economic growth to electricity consumption but no evidence of reversal causality

the relationship between energy demand and real gdp growth rate the role of price asymmetries and spatial externalities within 34 countries across the globe abstract the aim of this paper is to empirically explore the relationship between energy demand and real gross domestic product gdp growth and to investigate the role of regional externalities on per capita final energy consumption fec in 34 countries during the period from 2005 to 2013 the paper utilizes a dynamic panel generalized method of moments dpggm approach and spatial econometric techniques in order to analyse the effect of real gdp growth rate on fec through an error correction model ecm and to examine clustered patterns of energy consumption the results show that a the demand is elastic both in the industrial and the household services sectors b electricity and natural gas are demand substitutes c the relationship between real gdp growth rate and per capita energy consumption exhibits an inverted u shape for all the sample countries under scrutiny 34 countries eurozone and eu28 but not for all the employed sectors of the economy d price electricity and gas and gdp growth asymmetries are supported from the employed parametric tests and e distance does not affect per capita fec but economic neighbours have a strong positive effect

residential electricity demand dynamics in turkey abstract this article provides fresh empirical evidences for the income and price elasticies of the residential energy demand both in the short run and long run for turkey over the period 1968 2005 using the bounds testing procedure to cointegration the computed elasticities of income and price are consistent with the previous studies and as expected the long run elasticities are greater than the short run elasticities an augmented form of granger causality analysis is implemented among residential electricity income price and urbanization in the long run causality runs interactively through the error correction term from income price and urbanization to residential energy but the short run causality tests are inconclusive the parameter stability of the short run as well as long run coefficients in the residential energy demand function are tested the results of these tests display a stable pattern

can foreign direct investment harness energy consumption in china a time series investigation abstract this study assesses the long run relationship and short run dynamics between foreign direct investment fdi and energy consumption in china applying the bounds testing approach to annual data from 1982 to 2012 we find that a stable fdi energy nexus exists in the long run and a 1 increase in fdi reduces energy consumption by 0 21 however this study shows a positive association between fdi and energy consumption in the short run attributing to the dominance of the scale effect our results remain robust to different measurements and estimators it is suggested that the chinese government shall support the inward fdi in the tertiary and energy sectors and strengthen local absorptive capacities to fully internalize fdi related knowledge spillovers in energy conservation

energy and economic growth in the usa a multivariate approach abstract this paper examines the causal relationship between gdp and energy use for the period 1947 90 in the usa the relationship between energy use and economic growth has been examined by both biophysical and neoclassical economists in particular several studies have tested for the presence of a causal relationship in the granger sense between energy use and economic growth however these tests do not allow a direct test of the relative explanatory powers of the neoclassical and biophysical models a multivariate adaptation of the test vector autoregression var does allow such a test a var of gdp energy use capital stock and employment is estimated and granger tests for causal relationships between the variables are carried out although there is no evidence that gross energy use granger causes gdp a measure of final energy use adjusted for changing fuel composition does granger cause gdp

hyteresis in import prices the beachhead effect this paper shows that temporary real exchange rate fluctuations can have persistent hysteretic effects on trade specifically when market entry costs are sunk sufficiently large exchange rate shocks alter domestic market structure and thereby induce hysteresis this simple result has strong implications for exchange rate theory t rade policy and estimation of trade equations empirical evidence su ggests that the recent dollar overvaluation induced hysteresis in u s import prices namely the aggregate pass through equation of exchange rates to import prices shifted in the 1980s the shift s nature and timing is broadly consistent with the hysteresis hypothesis copyright 1988 by american economic association

review of energy growth nexus a panel analysis for ten eurasian oil exporting countries abstract the paper examines the energy growth nexus in ten oil exporting developing eurasian countries azerbaijan bahrain iran kazakhstan kuwait oman qatar russia saudi arabia and the uae over the period 1997 2014 lack of enough energy growth nexus studies on the oil exporters of the middle east and commonwealth of independent states coupled with a number of issues which have not been addressed by prior studies motivate us to conduct this review policymakers should take into consideration that any policy measures aimed at conserving the primary energy consumption can undermine economic growth as we find that the growth hypothesis dominates in the primary energy consumption growth nexus conversely validity of the neutrality hypothesis in the residential electricity consumption growth nexus another finding of this study implies that policymakers can pursue conservation policy by reconsidering the residential electricity subsidies in the selected countries the study contributes to the energy growth literature by addressing some issues and filling the gap for the eurasian oil exporting countries especially those in the middle east and commonwealth of independent states

collusion and predation under almost free entry abstract this study investigates the degree of cooperation that firms can support in the absence of significant barriers to entry a free entry subgame perfect equilibrium is defined by q n where q is the collusive output rate and n is the number of active firms such that there is no incentive for an active firm to deviate output from q and there is no incentive for a potential entrant to enter the industry it is shown that for all n 1 if the discount factor is sufficiently high there exists a free entry equilibrium in which active firms sustain a non trivial degree of cooperation cooperation is supported by active firms credibly threatening to respond to entry with a period of aggressive competition

causal relationship between energy consumption and gdp growth revisited a dynamic panel data approach abstract this paper uses the panel data of energy consumption and gdp for 82 countries from 1972 to 2002 based on the income levels defined by the world bank the data are divided into four categories low income group lower middle income group upper middle income group and high income group we employ the gmm sys approach for the estimation of the panel var model in each of the four groups afterwards the causal relationship between energy consumption and economic growth is tested and ascertained we discover a in the low income group there exists no causal relationship between energy consumption and economic growth b in the middle income groups lower and upper middle income groups economic growth leads energy consumption positively c in the high income group countries economic growth leads energy consumption negatively after further in depth analysis of energy related data the results indicate that in the high income group there is a great environmental improvement as a result of more efficient energy use and reduction in the release of co2 however in the upper middle income group countries after the energy crisis the energy efficiency declines and the release of co2 rises since there is no evidence indicating that energy consumption leads economic growth in any of the four income groups a stronger energy conservation policy should be pursued in all countries

cointegration and causality between electricity consumption and gdp empirical evidence from malawi abstract the granger causality gc and error correction ecm techniques were applied on 1970 1999 data for malawi to examine cointegration and causality between electricity consumption kwh and respectively overall gdp agricultural gdp agdp and non agricultural gdp ngdp cointegration was established between kwh and respectively gdp and ngdp but not with agdp the gc results detect bi directional causality between kwh and gdp suggesting that kwh and gdp are jointly determined but one way causality running from ngdp to kwh the ecm results detect causality running one way from gdp also from ngdp to kwh suggesting that a permanent rise in gdp may cause a permanent growth in electricity consumption

environmental degradation renewable and non renewable electricity consumption and economic growth assessing the evidence from algeria abstract the imperative to reduce c o 2 emissions is stronger than ever and investment in renewable energy is one of the most viable options to reduce the carbon footprint this article explores the dynamic causal relationship between co2 emissions renewable electricity consumption non renewable electricity consumption and economic growth in algeria by using autoregressive distributed lag cointegration approach over the period 1980 2012 the empirical results confirm the existence of cointegration long run relationship among the variables we find that in the long run economic growth and non renewable electricity consumption have a detrimental effect on the environment quality whereas renewable energy use has a beneficial environmental effect furthermore in the short run results reveal unidirectional causality relationship running from gdp to nrec supporting the conservation hypothesis i e electricity consumption is dictated by economic growth the results suggest broadly that renewable electricity consumption can help to enhance environmental quality in algeria but so far renewable electricity generation has not reached a level that allows a significant contribution to energy based carbon dioxide emissions reduction target

electricity consumption and economic growth bounds and causality analyses of opec members this paper investigates the relationship between electricity consumption and economic growth for opec members the bounds test yields evidence of a long run relationship between electricity consumption and economic growth for all opec members causality results suggest that economic growth is dependent on electricity consumption in five countries less dependent in three countries and independent in three countries because these countries do not necessarily share similar political and economic traits no single universal policy implication can be inferred from the results the disparities across these causality results therefore stress the importance of formulating causality explanations while taking into account the particularities of individual countries rather than blindly applying the conventional interpretations

does renewable and or non renewable energy consumption matter for total factor productivity tfp growth evidence from the brics abstract studies proved that output growth is mainly associated with the total factor productivity tfp growth and variables that affect the tfp have an important explanatory power on output in this regards the aim of this study is to examine the causal relationship between different types of energy consumption and tfp growth in the brics from 1992 to 2012 a panel bootstrap granger causality test by konya 2006 68 was employed to investigate the direction of possible connection between energy consumption and tfp growth results show that no remarkable causal link exists between renewable energy consumption and tfp growth in the brics however in the case of non renewables energy consumption creates a positive externality that contributes economic development in brazil and south africa by the growth of tfp as well as energy use itself in this respect policies that promote coal and non renewable electricity consumption in south africa and natural gas consumption in brazil may be beneficial for their economic development

linking financial development economic growth and energy consumption in pakistan abstract this paper aims at exploring the finance growth energy nexus for pakistan over the 1972 2012 period by employing the system gmm estimation technique the study tries to capture the impact of financial development over energy consumption through economic growth channel and includes energy prices and urbanization in the structural model the study finds positive and significant impact of economic growth and urbanization on energy consumption while the effect of energy prices over energy consumption is significant but negative financial development positively and significantly affects energy consumption through the economic growth channel our analysis is important for policy makers for effective energy demand planning and conservation policies that would ensure sustainable economic development as well as serve as motivation to search alternative energy sources to meet the bourgeoning energy demand in pakistan

dynamics between energy output openness and financial development in sub saharan african countries abstractthis study aims to establish the connection between energy use economic output financial development and trade based on the panel data of 15 sub saharan african ssa countries during the period from 1983 to 2010 one full main panel and two subpanels were created by incorporating low income and middle income countries the panel cointegration test results indicate a long run relationship between the variables the mean group mg estimators show that energy consumption financial development capital and international trade have significant impacts on economic output in the case of middle income countries the granger causality analysis reveals that rising economic output leads to higher energy consumption but this is not true vice versa this means that energy conservation measures are unlikely to have adverse impacts upon economic output on the other hand there is a complementary relationship between financial development and energy consumption in this case energy conservation measures

energy consumption employment output and temporal causality evidence from taiwan based on cointegration and error correction modelling techniques in this study a cointegration analysis and a vector autoregressive model var are used to examine the causal relationships among energy consumption employment and output for taiwan over the period january 1982 to november 1997 johansen 1988 and johansen and juselius 1990 cointegration test result indicates these three variables are cointegrated with one cointegrating vector the results from granger causality tests based on vector error correction models vecm suggest bidirectional grange causality for employment output and employment energy consumption but only unidirectional causality running from energy consumption to output furthermore the impulse responses and variance decompositions are also incorporated into the analysis the results from impulsive response and variance decomposition analysis tell similar stories energy consumption appears to have led to output growth in taiwan over this period the policy implication of this finding is that energy conservation will restrain the outpu

exchange rate pass through when market share matters the authors investigate the pass through from exchange rates to import prices when firms future demands depend on their current market shares they show that profit maximizing foreign firms may either raise or lower their dollar export prices when the dollar appreciates temporarily i e the pass through may be perverse and that current import prices may be more sensitive to expected future exchange rates than to current exchange rates they present evidence that suggests the behavior of expected future exchange rates may provide a clue to the puzzling recent behavior of u s import prices copyright 1989 by american economic association

exchange rate pass through abstract the resilience of trade balances of the major industrialized economies to changes in their exchange rates has evoked interest in the exchange rate pass through relationship so far there has not been a comprehensive survey of this literature the paper aims to fill this gap in two ways first it pieces together the theoretical literature on exchange rate pass through second it provides a critical survey of the empirical literature on exchange rate pass through emphasis is placed on the data and methodology employed in previous work this is done in order to guide future work in this growing area of research

residential electricity demand in taiwan this paper examines the residential demand for electricity in taiwan as a function of household disposable income population growth the price of electricity and the degree of urbanization short and long term effects are separated through the use of an error correction model in the long run the income elasticity is unit elastic the own price effect is negative and inelastic in an error correction framework the short run income and price effects are small and less than the long run effects cooling degree day effects have a positive impact on short run consumption we have used a proxy variable urbanization to capture economic development characteristics and changes in electricity using capital stocks not explained by income the variable provides significant explanatory power to the model both in the short and long run we interpret it as controlling for economic development factors not captured by the pure income effect and we think it holds promise for explaining residential electricity consumption in other developing countries

exchange rate pass through for strategic pricing and advertising abstract this paper builds a model in the new empirical industrial organization framework bresnahan t 1989 industries and market power in schmalensee r willig r eds handbook of industrial organization north holland amsterdam to estimate exchange rate pass through in price and advertising price cost margins market structure and firm conduct are estimated endogenously allowing for precise estimation of the degree of and reasons for incomplete pass through i demonstrate that price and advertising pass through are functions of demand cost and market conduct in the short run in the long run the market conduct and cost technologies are in turn determined by the exchange rate movements 1997 elsevier science b v

accounting for incomplete pass through recent theoretical work has suggested a number of potentially important factors in causing incomplete pass through of exchange rates to prices including markup adjustment local costs and barriers to price adjustment we empirically analyze the determinants of incomplete passthrough in the coee industry the observed pass through in this industry replicates key features of pass through documented in aggregate data prices respond sluggishly and incompletely to changes in costs we use microdata on sales and prices to uncover the role of markup adjustment local costs and barriers to price adjustment in determining incomplete pass through using a structural oligopoly model that nests all three potential factors the implied pricing model explains the main dynamic features of short and long run pass through local costs reduce long run pass through by a factor of 59 relative to a ces benchmark markup adjustment reduces pass through by an additional factor of 33 where the extent of markup adjustment depends on the estimated super elasticity of demand the estimated menu costs are small 0 23 of revenue and have a negligible eect on long run pass through but are quantitatively successful in explaining the delayed response of prices to costs we nd that delayed passthrough in the coee industry occurs almost entirely at the wholesale rather than the retail level

collusion over the business cycle we present a theory of collusive pricing for markets in which demand alternates stochastically between fast growth boom and slow growth recession phases we show that 1 the most collusive prices are weakly procyclical countercyclical when demand growth rates are positively negatively correlated through time and 2 the amplitude of the collusive pricing cycle is larger when the expected duration of boom phases decreases and when the expected duration of recession phases increases we also offer a generalization of rotemberg and saloner s 1986 model interpreting their findings in terms of transitory demand shocks that occur within broader business cycle phases

a literature survey on energy growth nexus abstract this paper provides a survey of the recent progress in the literature of energy consumption economic growth and electricity consumption economic growth causality nexus the survey highlights that most empirical studies focus on either testing the role of energy electricity in stimulating economic growth or examining the direction of causality between these two variables although the positive role of energy on growth has become a stylized fact there are some methodological reservations about the results from these empirical studies a general observation from these studies is that the literature produced conflicting results and there is no consensus neither on the existence nor on the direction of causality between energy consumption electricity consumption and economic growth as a policy implication to avoid from conflicting and unreliable results the authors may use the autoregressive distributed lags bounds test two regime threshold co integration models panel data approach and multivariate models including new variables such as real gross fixed capital formation labor force carbon dioxide emissions population exchange rates interest rates etc thus the authors should focus more on the new approaches and perspectives rather than by employing usual methods based on a set of common variables for different countries and different intervals of time

are prosumer households that much different evidence from stated residential energy consumption in germany abstract this paper discusses the effect of residential energy prosuming on households energy consumption behavior with the objective of finding evidence of a prosumer rebound effect on energy consumption prosuming is the partial self consumption of distributed energy production we hypothesize that prosumer households are systematically different from consumer households with regard to housing situation and socio economic characteristics we ensure an appropriate quasi randomized comparison by using propensity score matching as our identification strategy we employ data from a nationwide online survey among homeowners in germany while the data show a correlation between lower energy consumption and prosumer households we find no significant difference in energy consumption behavior between prosumers and non prosumers in a comparable sample with regard to socio economic and housing characteristics instead the lower energy consumption of prosumer households is attributed to more energy efficient technical equipment and thus to purchasing behavior our results do not show evidence of either negative or positive externalities of prosuming on residential energy consumption behavior and therefore we conclude that there is no need for additional governmental measures e g in the form of taxation or subsidies to address behavioral changes in energy prosuming

energy consumption and economic growth in central america evidence from a panel cointegration and error correction model abstract this study examines the relationship between energy consumption and economic growth for six central american countries over the period 1980 2004 within a multivariate framework given the relatively short span of the time series data a panel cointegration and error correction model is employed to infer the causal relationship based on the heterogeneous panel cointegration test by pedroni pedroni p 1999 critical values for cointegration tests in heterogeneous panels with multiple regressors oxford bulletin of economics and statistics 61 653 670 pedroni p 2004 panel cointegration asymptotic and finite sample properties of pooled time series tests with an application to the ppp hypothesis new results econometric theory 20 597 627 cointegration is present between real gdp energy consumption the labor force and real gross fixed capital formation with the respective coefficients positive and statistically significant the granger causality results indicate the presence of both short run and long run causality from energy consumption to economic growth which supports the growth hypothesis

coal consumption and economic growth evidence from a panel of oecd countries this study examines the relationship between coal consumption and economic growth for 25 oecd countries within a multivariate panel framework over period 1980 2005 the larsson et al 2001 panel cointegration test indicates there is a long run equilibrium relationship between real gdp coal consumption real gross fixed capital formation and the labor force the respective coefficients for real gross fixed capital formation and the labor force are positive and statistically significant whereas the coefficient for coal consumption is negative and statistically significant the results of the panel vector error correction model reveal bidirectional causality between coal consumption and economic growth in both the short and long run however the bidirectional causality in the short run is negative

electricity consumption real gdp causality nexus evidence from a bootstrapped causality test for 30 oecd countries the goal of this paper is to examine any causal effects between electricity consumption and real gdp for 30 oecd countries we use a bootstrapped causality testing approach and unravel evidence in favour of electricity consumption causing real gdp in australia iceland italy the slovak republic the czech republic korea portugal and the uk the implication is that electricity conservation policies will negatively impact real gdp in these countries however for the rest of the 22 countries our findings suggest that electricity conversation policies will not affect real gdp

cartel stability and tariff policy abstract in this paper we investigate the effect that tariff policy has on the ability of firms to collude in oligopolistic industries we find that small tariff rates lead to an industry structure more conducive to collusive behavior while large tariff rates weaken cartels there exists a critical tariff rate which has no effect on the cartel s stability this critical value is found to be a decreasing function of n the number of firms in the industry and n d n the proportion of firms that are domestic

hysteresis and export targeting abstract a direct and largely untested implication of hysteresis concerns the extent of market entering and leaving in response to large movements in exchange rates this note examines for 359 4 digit u s sic industries data on the distribution of u s exports by country of destination a proxy for the number of markets served from 1978 to 1987 and relates changes in these distributions to overall exchange rate movements we seek to explain differences in the response across industries on the basis of differences in sunk costs the empirical results are generally consistent with the hysteresis approach while in periods of general dollar depreciation firms spread exports more widely across foreign markets this effect is seen to be limited in industries with relatively large distribution and media advertising costs for which much of the costs of establishing export networks may be sunk

renewable energy consumption and economic growth evidence from a panel of oecd countries abstract this study examines the relationship between renewable energy consumption and economic growth for a panel of twenty oecd countries over the period 1985 2005 within a multivariate framework given the relatively short span of the time series data a panel cointegration and error correction model is employed to infer the causal relationship the heterogeneous panel cointegration test reveals a long run equilibrium relationship between real gdp renewable energy consumption real gross fixed capital formation and the labor force with the respective coefficients positive and statistically significant the granger causality results indicate bidirectional causality between renewable energy consumption and economic growth in both the short and long run

how urbanization affects energy use in developing countries abstract this paper identifies mechanisms whereby urbanization affects energy consumption industrialization and urbanization accompany each other during economic development but urbanization exerts a number of independent influences on energy use it permits economies of scale in production but requires more transportation food must be transported to urbanized populations and relatively smaller agricultural populations must modernize entailing considerable increases in agricultural energy use in cities a number of production activities which were domestically provided in rural areas using human or animal energy shift to sources outside the household using modern energy sources the largest single source of change in energy use is personal transportation passenger transport in cities is heavily weighted towards fuel using modes particularly as incomes increase to assess the overall impact a regression analysis of 59 developing countries for 1980 is conducted holding constant per capita income and the extent of industrialization the elasticity of energy consumption per capita and per dollar of gdp is between 0 35 and 0 48

the electricity consumption and gdp nexus for the fiji islands fiji is a small open island economy dependent on energy for its growth and development hence the relationship between energy consumption and economic growth is crucial for fiji s development in this paper we investigate the nexus between electricity consumption and economic growth for fiji within a multivariate framework through including the labour force variable we use the bounds testing approach to cointegration and find that electricity consumption gdp and labour force are only cointegrated when gdp is the endogenous variable we use the granger causality f test and find that in the long run causality runs from electricity consumption and labour force to gdp implying that fiji is an energy dependent country and thus energy conservation policies will have an adverse effect on fiji s economic growth

product differentiation and oligopoly in international markets the case of the u s automobile industry this paper develops and estimates a model of the u s automobile industry on the demand side a discrete choice model is adopted that is estimated using micro data from the consumer expenditure survey the estimation results are used in conjunction with population weights to derive aggregate demand on the supply side the automobile industry is modelled as an oligopoly with product differentiation equilibrium is characterized by the first order conditions of the profit maximizing firms the estimation results are used in counterfactual simulations to investigate two trade policy issues the effects of the ver and exchange rate pass through

co2 emissions energy consumption and output in france abstract this paper examines the dynamic causal relationships between pollutant emissions energy consumption and output for france using cointegration and vector error correction modelling techniques we argue that these variables are strongly inter related and therefore their relationship must be examined using an integrated framework the results provide evidence for the existence of a fairly robust long run relationship between these variables for the period 1960 2000 the causality results support the argument that economic growth exerts a causal influence on growth of energy use and growth of pollution in the long run the results also point to a uni directional causality running from growth of energy use to output growth in the short run

urbanization economic growth energy consumption and co2 emissions empirical evidence from countries with different income levels abstract the growth of anthropogenic co2 emissions has been widely attributed to the combustion of energy in support of human activities associated with economic development while the link between urbanization economic growth energy consumption and co2 emissions has as a result received considerable multidisciplinary scholarly attention little work has been undertaken with respect to the how differences in the development stages or income levels of the countries studied may affect these relations here we empirically explore the link between urbanization economic development energy consumption and co2 emissions specifically taking into account the different income levels of the countries studied a series of panel data models and a balanced dataset for a panel of 170 countries were utilized in the study which took the period of 1980 2011 into consideration the result of panel cointegration tests suggested that a cointegration relationship existed between variables in all the countries studied and that a statistically significant positive relationship existed between the variables employed in the long run the results of a granger causality test based on the vector error correction model vecm provided evidence of varied granger causality relationships between the variables across the income based subpanels moreover we also undertook an impulse response and variance decomposition analysis that allowed us to forecast the impacts of economic growth urbanization and energy consumption on future co2 emissions during the period surveyed our results cast a new light on the importance of a country s development stage and income level for government policy decisions relating to the reduction of co2 emissions

energy consumption and economic growth relationship evidence from panel data for low and middle income countries abstract this paper uses the panel data of energy consumption ec and economic growth gdp for 51 countries from 1971 to 2005 these countries are divided into three groups low income group lower middle income group and upper middle income group countries firstly a relationship between energy consumption and economic growth is investigated by employing pedroni 1999 panel cointegration method secondly panel causality test is applied to investigate the way of causality between the energy consumption and economic growth finally we test whether there is a strong or weak relationship between these variables by using pedroni 2001 method the empirical results of this study are as follows i energy consumption and gdp are cointegrated for all three income group countries ii the panel causality test results reveal that there is long run granger causality running from gdp to ec for low income countries and there is bidirectional causality between ec and gdp for middle income countries iii the estimated cointegration factor is not close to 1 in other words no strong relation is found between energy consumption and economic growth for all income groups considered in this study the findings of this study have important policy implications and it shows that this issue still deserves further attention in future research

productive energy use and economic growth energy physical and human capital relationships abstract ecological and biophysical economists and historians of economics consider that availability of energy inputs has played a key role in driving economic growth in industrialized and emerging economies nevertheless being very sensitive to structural characteristics or stages of economic development the strength of this link differs among countries this study analyzes the role of energy in economic growth from a geographical standpoint by estimating an aggregate translog production function with human and physical capital and productive energy use as production factors within a growth framework panel data of 38 major countries for the period from 1995 to 2007 were used the strength of the link between energy and growth is analyzed for the whole sample and the following relevant country groups oecd bric nafta east asian east european and eu15 countries obtained results show that the calculated productivity elasticities with respect to energy use are positive for all country groups bric countries have higher elasticities around 0 37 and eu15 countries have lower elasticities around 0 12 weak substitutability relationships between energy and capital are observed for all groups except for bric and east european countries which show complementarity relationships

energy consumption and gdp in developing countries a cointegrated panel analysis in this paper we re investigate the co movement and the causality relationship between energy consumption and gdp in 18 developing countries using data for the period 1975 to 2001 recently developed tests for the panel unit root heterogeneous panel cointegration and panel based error correction models are employed the empirical results provide clear support of a long run cointegration relationship after allowing for the heterogeneous country effect the long run relationship is estimated using a full modified ols the evidence shows that long run and short run causalities run from energy consumption to gdp but not vice versa this result indicates that energy conservation may harm economic growth in developing countries regardless of being transitory or permanent

an investigation of co integration and causality between energy consumption and economic activity in taiwan applying hsiao a version of the granger causality method this paper examines the causality between energy and gnp and energy and employment by applying recently developed techniques of co integration and hsiao s version of the granger causality to taiwanese data for the 1955 1993 period the phillips perron tests reveal that the series with the exception of gnp are not stationary and therefore differencing is performed to secure stationarity the study finds causality running from gdp to energy consumption without feedback in taiwan it is also found that causality runs from gdp to energy but not vice versa

residential energy expenditures and the relevance of changes in household circumstances this paper analyses the impact that dwelling characteristics and characteristics and behaviours of household members have on per capita energy expenditures it also analyses whether changes in household socio economic circumstances translate in changes in energy expenditures socio economic characteristics have a moderate impact while dwelling characteristics and especially household size have much larger impacts the largest changes in energy expenditures are due to changes in household size the recent socio demographic trends will make it harder to design policies to effectively reduce the carbon footprint of a country while policies influencing cohabitation and family size may have positive indirect effects

price discrimination by u s and german exporters the insensitivity of the u s trade balance to the sharp depreciation of the dollar in the past three years has revived interest in the relationship between exchange rates and the trade balance a central issue in most analyses of the relation between the current account and the exchange rate concerns the price adjustment process the simple integrated competitive market model predicts that local currency prices should change in proportion to the nominal exchange rate for a country too small to influence world prices the relationship between local currency import prices and exchange rates has been referred to as the pass through relationship in the empirical literature in international economics if the proportional relationship between import prices and exchange rates holds pass through is said to be complete accounts of recent u s experience cite the failure of dollar prices of imported goods to rise in proportion to exchange rates i e incomplete pass through as an important factor in explaining the persistence of the trade deficit unfortunately observations on pass through alone provide limited insight into the behavior of markets since incomplete pass through is consistent with at least two fundamentally different paradigms one is the standard competitive model of trade in which the law of one price holds but exchange rate fluctuations are associated with large changes in import demand due to other factors for example if dollar appreciation is correlated with increases in world demand and industry marginal cost is increasing then pass through will be less than complete the other is an imperfectly competitive model in which exporters are capable of price discriminating across destination markets a phenomenon paul krugman 1987 has labeled pricing to market in this model incomplete pass through is typically associated with fluctuations in the markup of price over marginal cost on exports 2 these fluctuations in markups are believed to be countryspecific they do not reflect the behavior of prices to other export destinations both models are plausible explanations of recent u s experience unfortunately it is impossible to distinguish between these competing models using only information on import prices and exchange rates for a single country in order to distinguish between the competing models an empirical analysis of goods prices and exchange rates must be capable of measuring either marginal cost or the markup over marginal cost either of these tasks poses formidable empirical problems much of the empirical literature in industrial organization has been concerned with precisely these issues since markups are an important measure of the competitiveness of industries

determinants of residential space heating expenditures in germany abstract we first examine the determinants of household expenditures on space heating and hot water supply in germany a number of socio economic characteristics of households are included along with building characteristics our analysis covers information on more than 12 000 households in germany for the years 1998 and 2003 the analysis continues by investigating whether different kinds of households are affected differently by increases in energy prices households in owner occupied properties are less affected compared to those in rented accommodation this could be because owners are more likely to have installed energy efficient heating and hot water supply systems and landlords have less of an incentive to improve the conditions of their rented accommodations an energy policy targeting especially the latter group might benefit not only households in rented accommodation but might also increase energy efficiency and reduce greenhouse gas emissions as well

a unified framework for analysing price interdependence innovative activity and exchange rate pass through this paper develops an international oligopoly model in which domestic and foreign firms simultaneously choose their price and innovation strategies under the assumption of non zero conjectural variations in relation to their competitors price changes the model captures the links between the exchange rate foreign and domestic firms prices and investment in process innovation and provides a unified framework for analysing exchange rate pass through

renewable and non renewable energy consumption and economic activities further evidence from oecd countries this article examines the dynamic relationship between renewable and non renewable energy consumption and industrial output and gdp growth in oecd countries using data over the period of 1980 2011 the panel cointegration technique allowing structural breaks is used for empirical investigation the results show that there is a long term equilibrium relationship among non renewable and renewable energy sources industrial output and economic growth the panel causality analyses show bidirectional causality between industrial output and both renewable and non renewable energy consumption in the short and long run however there is evidence of bidirectional short run relationship between gdp growth and non renewable energy consumption while unidirectional causality between gdp growth and renewable energy consumption these results indicate that oecd economies still remain energy dependent for their industrial output as well as overall economic growth however expansion of renewable energy sources is a viable solution for addressing energy security and climate change issues and gradually substituting renewable to non renewable energy sources could enhance a sustainable energy economy

energy consumption and economic growth a causality analysis for greece abstract this paper investigates the causal relationship between aggregated and disaggregated levels of energy consumption and economic growth for greece for the period 1960 2006 through the application of a later development in the methodology of time series proposed by toda and yamamoto 1995 at aggregated levels of energy consumption empirical findings suggest the presence of a uni directional causal relationship running from total energy consumption to real gdp at disaggregated levels empirical evidence suggests that there is a bi directional causal relationship between industrial and residential energy consumption to real gdp but this is not the case for the transport energy consumption with causal relationship being identified in neither direction the importance of these findings lies on their policy implications and their adoption on structural policies affecting energy consumption in greece suggesting that in order to address energy import dependence and environmental concerns without hindering economic growth emphasis should be put on the demand side and energy efficiency improvements

exchange rates and market power evidence from the petrochemical industry abstract this paper takes a microeconometric approach to the study of exchange rate pass through in imperfectly competitive markets we provide evidence for the hypothesis that incomplete exchange rate pass through can be attributed to non competitive conduct by foreign firms a unique feature of our approach is the use of highly disaggregated industry data which is compatible with the behavioral assumptions of a homogeneous product oligopoly model we employ a panel data set consisting of location and product specific price and cost data for 29 traded petrochemicals for the us germany and japan during 1982 to 1993 our empirical estimates indicate that german and japanese firms exercised statistically significant market power in the us petrochemical market during our sample period

the validation of granger causality through formulation and use of finance growth energy indexes abstract the paper aims to investigate the finance growth energy nexus validity in pakistan by taking large range of relevant variables and developing indexes focus of the paper is to evaluate the long run relationship between financial development economic development and energy consumption after extracting the indices granger s ordinary least squares ols regression and correlation is used to explain short run deviation in the nexus in order to capture co integration eagle granger approach is applied lastly hurst exponent are used to estimate annual rescaled range statistics to explain deviation during period of analysis granger causality has been empirically tested in a robust way incorporating large range of relevant variables on overall nexus of finance growth energy that has been hardly tested in such depth index formation through econometric analysis is novel part of this study which revealed that in short run financial development index fdi and energy price have significant relationship with energy consumption however in long run analysis has endorsed the concept of granger casualty especially on feedback hypothesis study has practical and theoretical contribution to the literature that could be highly beneficial to policy makers

energy consumption and gdp in tunisia cointegration and causality analysis abstract in this paper the johansen cointegration technique is used to examine the causal relationship between per capita energy consumption pcec and per capita gross domestic product pcgdp for tunisia during the 1971 2004 period in order to test for granger causality in the presence of cointegration among the variables a vector error correction model vecm is used instead of a vector autoregressive var model our estimation results indicate that the pcgdp and pcec for tunisia are related by one cointegrating vector and that there is a long run bi directional causal relationship between the two series and a short run unidirectional causality from energy to gross domestic product gdp the source of causation in the long run is found to be the error correction terms in both directions hence an important policy implication resulting from this analysis is that energy can be considered as a limiting factor to gdp growth in tunisia conclusions for tunisia may also be relevant for a number of countries that have to go through a similar development path of increasing pressure on already scarce energy resources

global estimates of energy consumption and greenhouse gas emissions abstract the present study examines the long run relationship between energy consumption and greenhouse gas emission for different groups of countries comprising lower middle income upper middle income and heavily indebted countries east asia and pacific east europe and central asia latin america and caribbean middle east and north africa south asia sub saharan africa and for aggregate data of the world the data has been analyzed by using various econometric techniques specifically the johnson cointegration modified version of granger causality and variance decomposition analysis from the period of 1975 to 2011 the results confirm that there is a long run relationship between greenhouse gas emissions i e agricultural methane emission agricultural nitrous oxide emission and carbon dioxide emission and energy consumption the results of granger causality indicate that energy consumption granger causes greenhouse gas emission but not vice versa the important finding is that energy consumption granger causes gdp per unit energy use which confirms the energy led growth hypothesis in the world however the vice versa relationship does not hold the results imply that a policy to cut energy consumption tends to diminish greenhouse gas emission though affecting gdp of countries negatively

energy consumption and gdp causality a three step analysis for emerging european countries abstract the established european targets should play a leading role in the complex economic process of energy consumption and the emerging countries have to consider their implications for adjusting the energy policies at national level this paper develops investigations on the causality relationship between energy consumption and gdp in the context of emerging european countries covering the period 1980 2013 this research covers the limits identified by previous researchers by detailing the energy consumption by sources and by referring to five emerging countries in europe unlike most of the previous studies it has a double approach long and short run bidirectional relationships a detailed analysis on the impact of economic growth on the energy consumption by country is conducted in order to contribute to the enrichment of the research field towards this objective a three step analysis is performed stationarity cointegration and causality tests are considered the empirical study shows mixed results there is a balance in confirming conservation growth and neutrality hypotheses in some specific cases results imply that energy consumption and economic growth are jointly determined however a comparative analysis for different significance levels draws attention on the differences in judgment of results for this type of studies discussions on the results in terms of causality are conducted in order to identify future trends for research

causality between energy consumption and economic growth in india a note on conflicting results abstract this note examines the different direction of causal relation between energy consumption and economic growth in india applying engle granger cointegration approach combined with the standard granger causality test on indian data for the period 1950 1996 we find that bi directional causality exists between energy consumption and economic growth further we apply johansen multivariate cointegration technique on the different set of variables the same direction of causality exists between energy consumption and economic growth this is different from the results obtained in earlier studies

energy consumption carbon emissions and economic growth in china abstract this paper investigates the existence and direction of granger causality between economic growth energy consumption and carbon emissions in china applying a multivariate model of economic growth energy use carbon emissions capital and urban population empirical results for china over the period 1960 2007 suggest a unidirectional granger causality running from gdp to energy consumption and a unidirectional granger causality running from energy consumption to carbon emissions in the long run evidence shows that neither carbon emissions nor energy consumption leads economic growth therefore the government of china can purse conservative energy policy and carbon emissions reduction policy in the long run without impeding economic growth

the impact of renewable energy consumption to economic growth a replication and extension of abstract this study replicates and extends the results presented in a top cited article in this journal inglesi lotz 2016 which analyzes the impact of renewable energy consumption to economic growth for the oecd countries by applying the ordinary least squares with fixed effect estimator on the data from 1990 to 2010 by using the same data and methods this study first produces and compare empirical results with those reported in the original article then it applies a set of new econometric methods on the same data to address heterogeneity in renewable energy and economic growth across the analyzed group of countries the panel quantile regression estimation shows that the effect of renewable energy consumption on economic growth is positive for lower and low middle quantiles however its effect becomes negative for middle high middle and higher quantiles when renewable energy consumption is proxied by the absolute value furthermore a negative impact of renewable energy on economic growth is observed in almost all quantiles when it is proxied by the share of renewable energy consumption to total energy consumption these results greatly differ from those of the original study

are causal relationships sensitive to causality tests 1987 are causal relationships sensitive to causality tests applied economics vol 19 no 4 pp 459 465

exchange rates and prices the adjustment of relative prices to exchange rate movements is explained in an industrial organization approach given labor costs in the respective currencies exchange rate movements change costs for firms selling in the home market and thus disturb the industry equilibrium the extent of absolute and relative price adjustment is shown to depend on market integration product substitutability the relative number of domestic and foreign firms and the market structure the impact of exchange rates on prices is illustrated in a variety of approaches including the cournot a dixit and j stiglitz 1977 and s salop 1979 models some empirical evidence is offered in support of the theory copyright 1987 by american economic association

the impacts of tourism energy consumption and political instability on economic growth in the mena countries using panel data of 24 countries in the middle east and north african mena region from 2001 to 2009 the purpose of this study is to examine the impacts of tourism energy consumption and political instability on economic growth within the neoclassical growth framework to address the objective of this study we utilise both the static panel data approach as well as the dynamic generalised method of moments gmm estimator to examine the impact of candidate variables our results show that energy consumption and tourism significantly contribute to the economic growth of countries in the mena region hence our study lends some support to the existence of the tourism led growth and energy led growth hypotheses in the region in line with our expectation our estimation results also reveal that political instability impedes the process of economic growth and development in the mena region therefore macroeconomic policies to promote expansion in tourism and energy consumption will directly stimulate economic growth additionally efforts to help the region overcome its history of political instability would attract more international tourist arrivals and further invigorate economic growth

exploring the effects of energy consumption on output per worker a study of albania bulgaria hungary and romania in this article we explore the long run cointegration between output capital and energy consumption in per worker terms for albania bulgaria hungary and romania we use the augmented solow 1956 model and the ardl bounds procedure pesaran et al 2001 to examine the short run and long run effects of energy and capital on output in per worker terms we also conduct causality test using the toda and yamamoto 1995 non causality procedure our results show the existence of long run cointegration between output per worker and energy per worker for all the four countries we find that energy per worker have a dynamic short run positive effect in albania 0 37 bulgaria 0 25 hungary 0 36 and romania 0 68 and a long run positive effect in bulgaria 0 32 and romania 0 63 which duly indicate that energy consumption has a momentous long run effect in these two countries the causality results indicate a unidirectional causation from output per worker to energy per worker for all the four countries and from capital per worker to energy per worker for albania and romania consequently a balance between effective energy consumption and sound energy conservation policies are likely to support economic growth in the four countries

energy needs for morocco 2030 as obtained from gdp energy and gdp energy intensity correlations abstract we present forecasts of the energy consumption of morocco towards 2030 two models have been developed and their results compared one based on the energy intensity ie and another one on a link with the country urbanization rate urb the ie model allowed to segment energy consumption in four posts while the urb model only in two posts for the sensitivity analysis to economic growth three future gdp evolution scenarios are proposed the retrospective correlations of both models are excellent but their future extrapolations finish in slightly different results through their correlation to electricity consumption peak power forecasts are also presented a forecast of the country energy intensity is commented as the average yearly increase of electricity should still be between 4 9 and 7 1 during 2020 2030 the electric equipment program continuation after 2020 must soon be clarified and avoid the former implementation delays as the white combustibles needs should yearly increase between 6 3 and 7 8 in 2020 2030 electrical equipment programs should also make provisions for the case of deployment of electric cars butane subsidies widen the gap with other fuels and must be removed very soon possible to reduce the growth of its consumption and energy intensity

determinants of renewable energy adoption in china and india a comparative analysis this article examines the dynamic relationships among output carbon emission and renewable energy generation of india and china during the period 1972 to 2011 using a multivariate vector error correction model vecm the results for india reveal unidirectional short run causality from carbon emission to renewable energy generation and from renewable energy generation to output whereas in the long run the variables have bidirectional causality causalities in china give a rather different scenario with a short run unidirectional causality from output to renewable energy and from carbon emission to renewable energy generation in the long run for china unidirectional causality is found from output to renewable energy generation while bidirectional causality is found between carbon emission and renewable energy generation

do urbanization income and trade affect electricity consumption across chinese provinces abstract the aim of this paper is to investigate the short and long run links among urbanization output gross domestic product gdp trade openness and electricity consumption in china using a rich dataset at the provincial level the short run granger causality analysis discloses a unidirectional causal relationship running from electricity to output and weak feedback effects between trade and urbanization the long run granger causality analysis shows output urbanization and trade trigger electricity consumption whereas trade urbanization and electricity cause output the group mean and lambda pearson causality tests reveal a large heterogeneity in the long run effects which suggests there is no one size fits all policy and each region should formulate a differentiated urbanization growth strategy based on its own characteristics to control electricity utilization

energy consumption real income and temporal causality results from a multi country study based on cointegration and error correction modelling techniques abstract unlike previous studies on the causal relationship between energy consumption and economic growth this paper illustrates how the finding of cointegration i e long term equilibrium relationship between these variables may be used in testing granger causality based on the most recent johansen s multivariate cointegration tests preceded by various unit root or non stationarity tests we test for cointegration between total energy consumption and real income of six asian economies india pakistan malaysia singapore indonesia and the philippines non rejection of cointegration between variables rules out granger non causality and imples at least one way of granger causality either unidirectional or bidirectionial secondly by using a dynamic vector error correction model we then analyse the direction of granger causation and hence the within sample granger exogeneity or endogeneity of each of the variables thirdly the relative strength of the causality is gauged through the dynamic variance decomposition technique by decomposing the total impact of an unanticipated shock to each of the variables beyond the sample period into proportions attributable to shocks in the other variables including its own in the bivariate system results based on these tools of methodology indicate that while all pair wise relationships shared common univariate integrational properties only relationships for three countries india pakistan and indonesia were cointegrated for these countries temporal causality results were mixed with unidirectional causality from energy to income for india exactly the reverse for indonesia and mutual causality for pakistan the vdcs were not inconsistent with these results and provided us with an additional insight as to the relatively more dominant direction of causation in pakistan simple bivariate vector autoregressive models for the three non cointegrated systems did not indicate any direction of causality significantly in either direction

a re examination of the relationship between electricity consumption and economic growth in malaysia abstract the purpose of this study is to re investigate the relationship between electricity consumption and economic growth in malaysia from 1972 1 to 2003 4 this study adopted the newly developed ecm based f test kanioura a turner p 2005 critical values for an f test for cointegration in the multivariate model applied economics 37 3 265 270 for cointegration to examine the presence of long run equilibrium relationship through the autoregressive distributed lag ardl model the empirical evidence suggests that electricity consumption and economic growth are not cointegrated in malaysia however the standard granger s test and mwald test suggest that electricity consumption and economic growth in malaysia granger causes each other this finding provides policymakers with a better understanding of electricity consumption and allows them to formulate electricity consumption policy to support the economic development and to enhance the productivity of capital labour and other factors of production for future economic growth in malaysia

symmetric pass through of tariffs and exchange rates under imperfect competition an empirical test abstract this paper examines the effect of tariffs and exchange rates on u s prices of japanese cars trucks and motorcycles in particular we test whether the long run pass through of tariffs and exchange rates are identical the symmetry hypothesis we find that this hypothesis is easily accepted in our sample we also find that the pass through relation varies across products ranging from about 0 6 for trucks to unity for motorcycles these coefficients have very different implications for trade policy we explain the results based on demand cost and institutional conditions in each industry

aggregation and the role of energy in the economy methods for investigating the role of energy in the economy involve aggregating different energy flows a variety of methods have been proposed but none has received universal acceptance this paper shows that the method of aggregation has crucial effects on the results of the analysis we review the principal assumptions and methods for aggregating energy flows the basic heat equivalents approach economic approaches using prices or marginal product for aggregation emergy analysis and thermodynamic approaches such as exergy we argue that economic approaches such as the index or marginal product method are superior because they account for differences in quality among fuels we apply various economic approaches in three case studies in the us economy in the first we account for energy quality to assess changes in the energy surplus delivered by the extraction of fossil fuels from 1954 to 1992 the second and third case studies examine the importance of energy quality in evaluating the relation between energy use and gdp first a quality adjusted index of energy consumption is used in an econometric analysis of the causal relation between energy use and gdp from 1947 to 1996 second we account for energy quality in an econometric analysis of the factors that determine changes in the energy gdp ratio from 1947 to 1996 without adjusting for energy quality the results imply that the energy surplus from petroleum extraction is increasing that changes in gdp drive changes in energy use and that gdp has been decoupled from between aggregate energy use all of these conclusions are reversed when we account for changes in energy quality 2000 elsevier science b v all rights reserved

energy consumption in china and underlying factors in a changing landscape empirical evidence since the reform period abstract in recent decades the phenomenal growth in the chinese economy has created increasing energy consumption this is the first study analysing energy consumption in china considering economic social and political dimensions of globalisation along with the effects from trade and financial sectors the time period covers the full trajectory since the start of economic reform until recent times in this respect we use the konjunkturforschungsstelle kof globalisation index to explore the dynamic link between economic growth financial development trade and various dimensions of globalisation and energy consumption modern time series econometric techniques are used in establishing stationarity long run dynamics and causality of the series the findings suggest that globalisation decreases energy consumption in the short run but increases it in the long run however the effect of financial development on energy consumption in china is opposite to the globalisation effect on energy consumption granger causality reveals a feedback effect between economic globalisation and financial development globalisation in china can only reduce energy consumption if china develops its financial sector to a greater extent in future china should invest in its financial sector and low carbon energy alternatives to achieve sustainable development prevention of energy shortfalls and cleaner environment would assist in bridging the gap both from social and political aspects to ensure china benefits significantly with high economic growth in this asian century

the role of globalization in energy consumption a quantile cointegrating regression approach abstract this paper examines the quantile behavior of the relationship between the nuances of globalization and energy consumption while incorporating capital and economic growth in case of top two most globalized countries netherlands and ireland by employing the recently developed quantile autoregressive distributed lag qardl model of cho et al 2015 the model is estimated using quarterly data over the period 1970q1 2015q4 the results indicate that the relationship is quantile dependent which may reveal misleading results in studies using traditional analyses that address the averages the wald test confirms our findings by rejecting the null hypothesis of parameter constancy for both the netherlands and ireland the changes in energy consumption are more responsive to past levels and past changes in globalization than the adjustment provided by the error correction method ecm interestingly the findings indicate that globalization is positively correlated with energy consumption in the long term for the two countries furthermore globalization shares a robust long term relationship with energy consumption energy consumption is strongly related to globalization in the long term however the short term effects of globalization on energy demand are limited for those countries important policy implications are then suggested based on the empirical results

applied econometrics and implications for energy economics research abstract developments in applied econometrics particularly with regard to unit root tests and cointegration tests have motivated a rich empirical literature on energy economics over the last decade this study reviews recent developments in time series econometrics applications in the energy economics literature we first consider the literature on the integration properties of energy variables we begin with a discussion of the implications of whether energy variables contain a unit root and proceed to examine how results differ according to the specific unit root or stationarity test employed we then proceed to examine recent developments in the literature on cointegration granger causality and long run estimates between disaggregated energy consumption and economic growth we review both single country and panel studies and pay particular attention to studies which have expanded the literature through adding variables such as financial development and trade in addition to energy consumption to the augmented production function as well as studies which have extended the literature through examining disaggregated energy consumption by type in each case we highlight best practice in the literature point to limitations in the literature including econometric modeling challenges and suggest recommendations for future research a key message of our survey is that the profession needs to guard against overload of research in these areas as most applied studies are no longer adding anything more to what is already known

how many times again will we examine the energy income nexus using a limited range of traditional econometric tools during the last three decades following closely the developments in econometric theory energy and environmental economists have empirically examined the energy income nexus for different countries and time periods however today in spite of the growing interest in this area the state of knowledge is still controversial and unsettled this viewpoint paper attempts to highlight some of the issues related to the existing literature on the long run relationship and causality between energy consumption and economic growth in particular it discusses how it is difficult to make policy recommendations on the basis of inconsistent and conflicting results in the published literature on the subject in order to do so the paper first illustrates the increasing trend in the number of studies published in this area providing also a brief comparison of the conventional methods used to estimate the energy income nexus it then deals with new directions and different viewpoints on the same issue

exchange rates and traded goods prices abstract this paper presents a partial equilibrium model of the determination of domestic and export prices by a monopolistic competitive firm the model stresses the role of exchange rate uncertainty and expectations the most important result of the analysis is that the stochastic properties of deviations from the law of one price are crucially affected by the currency of denomination of export prices using data on domestic and dollar export prices of japanese goods i find that deviations from the law of one price are due to exchange rate surprises but also to price staggering and ex ante price discrimination

an empirical analysis of dynamic nonprice competition in an oligopolistic industry this article develops a dynamic model of nonprice competition in an oligopolistic industry and uses it to analyze advertising competition in the u s cigarette industry the model generalizes existing studies by allowing advertising to affect both firm market shares and the total size of the market the model also allows dynamic conjectural variations to arise from the intertemporal links created by the durability of advertising we use these dynamic conjectural variations to distinguish alternative models of competitive interaction we estimate the complete model of firm production demand and advertising choice by using data for u s cigarette producers the results indicate that firm advertising primarily affects the level of market demand with a firm s effect on rival firms market shares arising through variations in the number of brands sold empirical results on firm behavior suggest that firms act as if their advertising choices will alter the future advertising choices of rival firms in both the high tar and low tar cigarette markets

energy consumption and economic growth in new zealand results of trivariate and multivariate models abstract this study examines the energy consumption growth nexus in new zealand causal linkages between energy and macroeconomic variables are investigated using trivariate demand side and multivariate production models long run and short run relationships are estimated for the period 1960 2004 the estimated results of demand model reveal a long run relationship between energy consumption real gdp and energy prices the short run results indicate that real gdp granger causes energy consumption without feedback consistent with the proposition that energy demand is a derived demand energy prices are found to be significant for energy consumption outcomes production model results indicate a long run relationship between real gdp energy consumption and employment the granger causality is found from real gdp to energy consumption providing additional evidence to support the neoclassical proposition that energy consumption in new zealand is fundamentally driven by economic activities inclusion of capital in the multivariate production model shows short run causality from capital to energy consumption also changes in real gdp and employment have significant predictive power for changes in real capital

adjustment costs and pricing to market theory and evidence abstract this paper develops an adjustment cost model of pricing to market the model consists of a monopolist who supplies an identical nondurable good to two foreign markets it is shown that the degree of pricing to market increases with the relative importance of the transitory component in exchange rates customs data from 1978 through 1987 on u s and canadian imports of seven german commodities are used to estimate the model s parameters and test its over identifying restrictions

electricity consumption growth nexus the case of malaysia abstract the goal of this paper is to model the relationship between electricity consumption and real gross domestic product gdp for malaysia in a bivariate and multivariate framework we use time series data for the period 1971 2003 and apply the bounds testing approach to search for a long run relationship our results reveal that electricity consumption real gdp and price share a long run relationship the results of the autoregressive distributed lag ardl estimates of long run elasticity of electricity consumption on gdp are found to be around 0 7 and statistically significant finally in the short run the results of the causality test show that there is a unidirectional causal flow from electricity consumption to economic growth in malaysia from these findings we conclude that malaysia is an energy dependent country leading us to draw some policy implications this paper adds support and validity thus reducing the policy makers concern on the ambiguity of the electricity and growth nexus in malaysia

energy consumption carbon dioxide emissions and economic growth the case of saudi arabia abstract this paper investigates the dynamic causal relationships between energy consumption energy price and economic activity in saudi arabia based on a demand side approach we use a johansen multivariate cointegration approach and incorporate co 2 emissions as a control variable the results indicate that there exists at least a long run relationship between energy consumption energy price carbon dioxide emissions and economic growth furthermore a long run unidirectional causality stands from energy consumption to economic growth and co 2 emissions bidirectional causality between carbon dioxide emissions and economic growth and a long run unidirectional causality runs from energy price to economic growth and co 2 emissions in the short run there is unidirectional causality running from co 2 emissions to energy consumption and economic output and from energy price to co 2 emissions even though the energy led growth hypothesis is valid the share of energy consumption in explaining economic growth is minimal energy price is the most important factor in explaining economic growth hence policies aimed at reducing energy consumption and controlling for co 2 emissions may not reduce significantly saudi s economic growth investing in the use of renewable energy sources like solar and wind power is an urgent necessity to control for fossil fuel consumption and co 2 emissions