Journal
ECONOMIC MODELLING
Volume 35, Issue -, Pages 126-133Publisher
ELSEVIER SCIENCE BV
DOI: 10.1016/j.econmod.2013.06.027
Keywords
Energy consumption; GDP; Nonlinear causality
Categories
Ask authors/readers for more resources
Knowing the real causal links between energy consumption and national income is crucial for policy decision making. In this article, we address this issue for the G7 countries by using two nonlinear causality tests in the sense of Hiemstra and Jones (1994), and Kyrtsou and Labys (2006). Our results reveal some new, but mixed results. Hiemstra-Jones test indicates unidirectional causality running from energy consumption to GDP for the United Kingdom, while a bidirectional causality between energy consumption and GDP is found for Canada, France, Japan and United States. On the other hand, Kyrtsou-Labys test shows that a unidirectional causality runs from energy consumption to GDP for France and the United States, and from GDP to energy consumption for Germany. Overall, our findings suggest that policy implications of the energy-GDP links should be interpreted with caution, given the test-dependent and country-specific results. (C) 2013 Elsevier B.V. All rights reserved.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available