Economic growth and energy consumption revisited - Evidence from linear and nonlinear Granger causality

Song Zan Chiou-Wei, Ching Fu Chen, Zhen Zhu

Research output: Contribution to journalArticlepeer-review

253 Citations (Scopus)

Abstract

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.

Original languageEnglish
Pages (from-to)3063-3076
Number of pages14
JournalEnergy Economics
Volume30
Issue number6
DOIs
Publication statusPublished - 2008 Nov

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics
  • Energy(all)

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