Domestic Energy Consumption and Country’s Income Growth: A Quantitative Analysis of Developing and Developed Countries Using Panel Causality, Panel VECM, Panel Cointegration and SURE
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Neutrality hypothesis, which holds that there is no causality (in either direction) between these two variables.
Energy conservation hypothesis, which holds that there is evidence of unidirectional causality from GDP growth to energy consumption.
Growth hypothesis, energy consumption drives GDP growth.
Feedback hypothesis, which suggests a bidirectional causal relationship between energy consumption and GDP growth. Growth, energy conservation and feedback hypotheses tend to work for developed and developing countries.
KeywordsEnergy consumption Economic growth Panel data Solow model
JEL ClassificationO13 O47 C33
The authors are grateful to the anonymous referees of the journal for their extremely useful suggestions to improve the quality of the paper.
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