Energy-Growth Causality: Asian Countries Revisited

Authors

  • Evan Lau
  • Xiao-Hui Chye Universiti Malaysia Sarawak
  • Chee-Keong Choong Universiti Tunku Abdul Rahman (Perak Campus)

Abstract

Understanding the impact of energy consumption on economic growth is an important consideration in the formulation of both energy and environmental policies. Motivated by this development, this paper empirically re-examines the direction of causality and the sign (in the panel sense) between energy consumption (EC) and the gross-domestic product (GDP) for seventeen selected Asian countries. Results reveal long-run stable equilibriums in these countries, while the EC brings about a positive impact on GDP. Causality runs from EC to GDP in the short-run, while the long-run causal linkage exists from GDP to EC. This indicates that energy is a force for economic growth in the short-run, but in the long-run, the EC is fundamentally driven by economic growth. Efficient coordination and cooperation towards the implementation of energy conservation policies to support sustainable economic development should be in the regional agenda.Keywords: Energy consumption; Panel analysis; Economic growth; Asian countriesJEL Classifications: Q43; C32

Downloads

Download data is not yet available.

Author Biographies

Evan Lau

Senior Lecturer/Managing Editor of International Journal of Business and Society (IJBS)

Chee-Keong Choong, Universiti Tunku Abdul Rahman (Perak Campus)

Deputy Dean (R&D and Postgraduate Programmes)

Downloads

Published

2011-10-28

How to Cite

Lau, E., Chye, X.-H., & Choong, C.-K. (2011). Energy-Growth Causality: Asian Countries Revisited. International Journal of Energy Economics and Policy, 1(4), 140–149. Retrieved from https://econjournals.com.tr/index.php/ijeep/article/view/73

Issue

Vol. 1 No. 4 (2011)

Section

Articles

License

Submission of an article implies that the work described has not been published previously , that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, will not be published elsewhere in the same form, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication.