Abstract
Purpose
The aim of this study is to describe the causal relationships between energy use, development, and productivity in Colombia.
Design/Methodology/Approach
The study was conducted by application of several econometric techniques. The time-series methodology used in this is based on the Granger causality test, which has been found appropriate by using the cointegration technique.
Findings
This study shows that economic growth and development drive total energy consumption. The results regarding the relationship among energy, poverty, and inequality indicate that increases in gross domestic product and energy supply per capita contribute to decrease poverty. The results also confirm that access to modern energy services helps to decrease poverty. Moreover, the improvements in energy efficiency and decreases in CO2 emissions have contributed to development and growth.
Practical Implications
The results of this study showed the importance of the formulation and adoption of good policies and strategies that encourage sustainable energy use to improve growth and development, especially in developing countries.
Originality/Value
This chapter provides an empirical approach for finding the causal relationship between development, productivity, and energy consumption in Colombia. The methodology and the results used in this study could be used for exploring the importance of energy in the productivity and economic development.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
The natural neighbor algorithm (Watson 1994) uses a circular areal-based procedure for interpolation. This approach determines the growth rate trends that could get in the continuum of possible combinations between several decision variables through the regression planes and nonplanar surface.
- 2.
Both are published by different entities of the Government of Colombia.
References
Alonso J (2004). Poverty, social development and the environment. In: Real Instituto Elcano de Estudios Internacionales y Estrategicos. Working paper no 38/2004
Ayres R (2008) Sustainability economics: where do we stand? Ecol Econ 67:281–310
Ayres R (2010). Energy intensity, efficiency and economics. Lecture for IMF Research Department. http://cedm.epp.cmu.edu/files/slides/Ayres.pdf
Bartlett MS (1955) An introduction to stochastic processes with special reference to methods and applications. Cambridge University Press, Cambridge
Castillo M (1997) Energy, capital and technological change in Colombia: a comparative analysis with the United States. J Univ Los Andes 67–72
Cleveland C, Hall C, Kaufmann R (1984) Energy and the U.S. economy: a biophysical perspective. Science 225:890–897
Cotte A (2010) Violence, poverty, inequality and economic growth in Colombia. Lambert Academic, Germany. ISBN 3838342585
Cotte A, Pardo C (2011) Trends in economic growth, poverty and energy in Colombia: long-run and short-run effects. Energy Syst 2:281–298
Dagdeviren H, Van der Hoeven R, Weeks J (2002) Poverty reduction with growth and redistribution. Dev Change 33:383–412
Despotis G (2005) Measuring human development via data envelopment analysis: the case of Asia and the Pacific. Omega 33:385–390
Dickey D, Fuller W (1979) Distribution of the estimators for autoregressive time series with a unit root. J Am Stat Assoc 74:427–431
Dutt G (2009) A climate agreement beyond 2012. Econ Pol Wkly 45:39–49
Electricity Interconnection (ISA) (2009) Analysis of GDP and energy demand in Colombia in moments of economic crisis. Report 06 (in Spanish)
Engle RF, Granger CWJ (1987) Co-integration and error correction: representation, estimation and testing. Econometrica 55:251–276
European Commission (2006) The EU energy initiative. Increasing access to energy for poverty eradication and sustainable development. http://europa.eu.int
Fleay B (2005) Energy quality and economic effectiveness. http://www.aspo-australia.org.au
Fuller W (1976) Introduction to statistical time series. Wiley, New York
Granger CWJ (1969) Investigating causal relations by econometrics models and cross spectral methods. Econometrica 37:424–438
Granger CWJ (1988) Some recent developments in a concept of causality. J Econom 39:199–211
Hanesson R (2009) Energy and GDP growth. Int J Energy Sector Manage 3:157–170
Hayes KJ, Slottje DJ, Nieswiadomy ML, Wolff EN (1994) The relationship between productivity changes and poverty in the United States. J Income Distrib 4:107–119
Herring H (1998) Does energy efficiency save energy: the implications of accepting the Khazzoom-Brookes Postulate. EERU, the Open University
IEA (International Energy Agency) (2005) Energy statistics manual. http://www.iea.org/stats/docs/statistics_manual.pdf
Johansen S (1988) Statistical analysis of cointegration vectors. J Econ Dyn Control 12:231–254
Johansen S, Juselius K (1990) Maximum likelihood estimation and inference on cointegration – with application to the demand for money. Oxford Bull Econ Stat 52:169–210
Jollands N, Aulkah H (1997) Energy use patterns and energy efficiency trends: the case of energy intensity analysis in New Zealand. Energy Management Association of New Zealand. http://www.ema.org.nz/publications/papers/
Kemmler A, Spreng D (2007) Energy indicators for tracking sustainability in developing countries. Energy Policy 35:2466–2480
Kummel R, Strassl W, Gossner A, Eichhorn W (1985) Technical progress and energy dependent production functions. J Econom 45:285–311
Lee C (2005) Energy consumption and GDP in developing countries: a co-integrated panel analysis. Energy Econ 27:415–427
Lee C (2006) The causality relationship between energy consumption and GDP in G-11 countries revisited. Energy Policy 34:1086–1093
Moroney J (1991) Energy, capital and technological change in the United States. Resour Energy 14:363–380
Mulder P, Groot H (2004) International comparisons of sectoral energy- and labour-productivity performance. Tinbergen Institute discussion paper. TI 2004-007/3
Newton HJ (1988) TIMESLAB: A Time Series Analysis Laboratory. Wadsworth, Belmont, CA
Nguyen P (2008) Energy consumption and economic development: a semi-parametric panel analysis. THEMA-CNRS, Université de Cergy-Pontoise. Working paper no. 2008–03
Pardo C (2010) Eco-label and life cycle in productive sectors. Lambert Academic, Germany. ISBN 978-3-8383-6353-0
Paul S, Bhattacharya R (2008) Causality between energy consumption and economic growth in India: a note on conflicting results. Energy Econ 26:977–983
Perman R (1991) Co-integration: an introduction to the literature. J Econ Stud 18:3–30
Phillips P, Perron P (1988) Testing for unit roots in time series regression. Biometrika 75:335–346
Soytas U, Sari R (2003) Energy consumption and GDP: causality relationship in G-7 countries and emerging markets. Energy Econ 25:33–37
Stern D, Cleveland C (2004) Energy and economic growth. Working papers in economics. Department of Economics, Rensselaer Polytechnic Institute. Number 0410
Stresing R, Lindenberger D, Kummel R (2008) Cointegration of output, capital, labor, and energy. Eur Phys J B 66:279–287
Unit of mines and energy planning (UPME) (2007). National energy plan 2006–2025. In: Context and strategies. http://www.upme.gov.co/English/Docs/
Unit of mines and energy planning (UPME), Ministry of mines and energy (2010) National energy balances 1975–2006. http://www.upme.org (in Spanish)
United Nations (UNEP) (1976) Increased energy economy and efficiency. A study on measures taken or which might be taken to achieve increased energy efficiency. Report. http://www.unep.org/publications/
Watson D (1994) nngridr: An implementation of natural neighbor interpolation. David Watson, Claremont, Australia, 170 pp
Wing I, Eckaus R (2004) Explaining long-run changes in the energy intensity of the U.S. Economy. Report No. 116. The MIT Joint Program on the Science and Policy of Global Change
World Bank (2006) Energy poverty issues and G8 actions. Discussion paper. http://194.84.38.65/files/eswfiles/energypoverty
Acknowledgement
The authors are grateful for the support provided by Royal Institute of Technology (KTH), the University of Göttingen, and the University of La Salle. The authors would like to thank the participants of the 17th Annual International Sustainable Development Research, (Columbia University, 8–10 May 2011). Any remaining errors are the responsibility of the authors.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2013 Springer-Verlag London
About this chapter
Cite this chapter
Martínez, C.I.P., Poveda, A.C. (2013). Energy, Development, and Economic Growth in Colombia. In: Leal Filho, W., Voudouris, V. (eds) Global Energy Policy and Security. Lecture Notes in Energy, vol 16. Springer, London. https://doi.org/10.1007/978-1-4471-5286-6_18
Download citation
DOI: https://doi.org/10.1007/978-1-4471-5286-6_18
Published:
Publisher Name: Springer, London
Print ISBN: 978-1-4471-5285-9
Online ISBN: 978-1-4471-5286-6
eBook Packages: EnergyEnergy (R0)