TY - JOUR
T1 - Economic growth and energy consumption revisited - Evidence from linear and nonlinear Granger causality
AU - Chiou-Wei, Song Zan
AU - Chen, Ching Fu
AU - Zhu, Zhen
N1 - Copyright:
Copyright 2008 Elsevier B.V., All rights reserved.
PY - 2008/11
Y1 - 2008/11
N2 - The relationship between energy consumption and economic growth is considered as an imperative issue in energy economics. Previous studies have ignored the nonlinear behavior which could be caused by structural breaks. In this study, both linear and nonlinear Granger causality tests are applied to examine the causal relationship between energy consumption and economic growth for a sample of Asian newly industrialized countries as well as the U.S. This study finds evidence supporting a neutrality hypothesis for the United States, Thailand, and South Korea. However, empirical evidence on Philippines and Singapore reveals a unidirectional causality running from economic growth to energy consumption while energy consumption may have affected economic growth for Taiwan, Hong Kong, Malaysia and Indonesia. Policy implications are also discussed.
AB - The relationship between energy consumption and economic growth is considered as an imperative issue in energy economics. Previous studies have ignored the nonlinear behavior which could be caused by structural breaks. In this study, both linear and nonlinear Granger causality tests are applied to examine the causal relationship between energy consumption and economic growth for a sample of Asian newly industrialized countries as well as the U.S. This study finds evidence supporting a neutrality hypothesis for the United States, Thailand, and South Korea. However, empirical evidence on Philippines and Singapore reveals a unidirectional causality running from economic growth to energy consumption while energy consumption may have affected economic growth for Taiwan, Hong Kong, Malaysia and Indonesia. Policy implications are also discussed.
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U2 - 10.1016/j.eneco.2008.02.002
DO - 10.1016/j.eneco.2008.02.002
M3 - Article
AN - SCOPUS:52049124792
SN - 0140-9883
VL - 30
SP - 3063
EP - 3076
JO - Energy Economics
JF - Energy Economics
IS - 6
ER -