Energy Consumption – Gross Domestic Product Causal Relationship in the Italian Regions

  • Antonio Angelo Romano
  • Giuseppe Scandurra
Conference paper
Part of the Studies in Classification, Data Analysis, and Knowledge Organization book series (STUDIES CLASS)


Despite of increasing amount of literature available on the relationship between energy consumption and Gross Domestic Product on a multi-countries framework, empirical analysis about this relationship in a spatial disaggregate level remains scarce. In this paper we investigate the relationship between energy consumption and real income by means of panel dataset of Italian regions using annual data covering the period 1980–2007. The panel co-integration and panel vector error correction models are employed to infer the dynamic directions of the causality between the two variables. Based on the panel co-integration test by Westerlund (Oxf Bull Econ Stat 69:709–748, 2007) we individuate a long-run equilibrium relationship between Gross Domestic Product (GDP) and Electricity Consumption (CE). Furthermore, the results of a panel Vector Error Correction Model suggest the presence of a bi-directional causality between variables both in the long-run and in short-run.


Gross Domestic Product Electricity Consumption Italian Region Real Gross Domestic Product Error Correction Term 
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Copyright information

© Springer-Verlag Berlin Heidelberg 2013

Authors and Affiliations

  1. 1.Department of Statistics and Mathematics for Economic ResearchUniversity of Naples “Parthenope”NaplesItaly

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