Journals A-Z
All Subjects
Free Journals
sciepub.com
American Journal of Energy Research
ISSN (Print): 2328-7349 ISSN (Online): 2328-7330 Website: https://www.sciepub.com/journal/ajer Editor-in-chief: Apply for this position
Open Access
Journal Browser
Go
Issue 4, Volume 2
Article Metrics
  • 36663
    Views
  • 30109
    Saves
  • 4
    Citations
  • 40
    Likes
Export Article
American Journal of Energy Research. 2014, 2(4), 81-89
DOI: 10.12691/ajer-2-4-2
Open AccessArticle

Energy Consumption and Economic Growth Nexus: Empirical Evidence from Tunisia

Kais Saidi1, and Sami Hammami1

1Faculty of Economics and Management, University of Sfax, Street of Airport, LP 1088, Sfax 3018, Tunisia

Pub. Date: September 01, 2014
View Full Text Full Text PDF (218 KB) Full Text ePUB(246 KB)

Cite this paper:
Kais Saidi and Sami Hammami. Energy Consumption and Economic Growth Nexus: Empirical Evidence from Tunisia. American Journal of Energy Research. 2014; 2(4):81-89. doi: 10.12691/ajer-2-4-2

Abstract

This article examines the two-way linkages between energy consumption and economic growth using data from Tunisia over the period 1974-2011. This research tests this interrelationship between variables using the Johansen cointegration technique. Our empirical results show that there exists bidirectional causal relationship between energy consumption and economic growth in the long-run. The study suggests that energy policies should recognize the differences in the nexus between energy consumption and economic growth in order to maintain sustainable economic growth in Tunisia.

Keywords:
economic growth energy consumption Johansen cointegration Granger causality Tunisia

Creative CommonsThis work is licensed under a Creative Commons Attribution 4.0 International License. To view a copy of this license, visit http://creativecommons.org/licenses/by/4.0/

References:

[1]  Akarca, A.T., Long, T.V., 1980. On the relationship between energy and GNP: a re-examination. Journal of Energy Development 5, 326-331.
 
[2]  Al-Iriani, M.A; 2006. Energy-GDP relationship revisited: An example from GCC countries using panel causality. Energy Policy 34, 3342-3350.
 
[3]  Altinay, G., Karagol, E., 2004. Structural break, unit root, and the causality between energy consumption and GDP in Turkey. Energy Economics 26, 985-994
 
[4]  Altinay, G., Karagol, E., 2004. Structural break, unit root, and the causality between energy consumption and GDP in Turkey. Energy Economics 26 (6), 985-994.
 
[5]  Ang, J., 2008. Economic development, pollutant emissions and energy consumption in Malaysia. J. Policy Model. 30, 271-278.
 
[6]  Aqeel, A., Butt, M.S., 2001. The relationship between energy consumption and economic growth in Pakistan. Asia-Pacific Development Journal 8, 101-109.
 
[7]  Asafu-Adjaye, J., 2000. The relationship between energy consumption, energy prices and economic growth: Time series evidence from Asian developing countries. Energy Economics 22, 615-625.
 
[8]  Belloumi, M., 2009. Energy consumption and GDP in Tunisia: Cointegration and causality analysis. Energy policy 37, 2745-2753.
 
[9]  Chandran, V.G.R., Sharma, S., Madhavan, K., 2010. Electricity consumption-growth nexus: the case of Malaysia. Energy Policy 38, 606-612.
 
[10]  Cheng, B.S., 1999. Causality between energy consumption and economic growth in India: an application of cointegration and error-correction modeling. Indian Economic Review xxxiv, 39-49.
 
[11]  Ebohon, O.J., 1996. Energy, economic growth and causality in developing countries. Energy Policy 24, 447-453.
 
[12]  Erdal, G., Erdal, H., Esengun, K., 2008. The causality between energy consumption and economic growth inTurkey. Energy Policy36(10), 3838-3842.
 
[13]  Ghosh, S., 2009. Electricity supply, employment and real GDP in India: evidence from cointegration and Granger-causality tests. Energy Policy 37 (8), 2926-2929.
 
[14]  Granger C.W.J., 1991. Developments in the study of cointegrated economic variables: In Long-run economic relation/Readings in cointegration (Eds.) Engle RF, Granger C.W.J., Oxford University Press, Oxford, 65-80.
 
[15]  Halicioglu, F., 2009. An econometric study of CO2 emissions, energy consumption, income and foreign trade in Turkey. Energy Policy 37, 1156-1164.
 
[16]  Jamil, F., Ahmad, E., 2010. The relationship between electricity consumption, electricity prices and GDP in Pakistan. Energy Policy 38, 6016-6025.
 
[17]  Johansen, S., 1988. Statistical analysis of cointegrating vectors. Journal of Economic Dynamics and control 12, 231-254.
 
[18]  Johansen. S., 1991. Estimation and Hypothesis Testing of Cointegration Vectors in Gaussian Vector Autoregressive Models. Econometrica 59, 1551-1580.
 
[19]  Jumbe, C.B.L., 2004. Cointegration and causality between electricity consumption and GDP: Empirical evidence from Malawi. Energy Economics 26, 61-68.
 
[20]  Jumbe, C.B.L., 2004. Cointegration and causality between electricity consumption and GDP: Empirical evidence from Malawi. Energy Economics 26, 61-68.
 
[21]  Kraft, J; Kraft, A., 1978. On the Relationship between Energy and GNP. Journal of Energy and Development 3, 401-403.
 
[22]  Lean, H.H., Smyth, R., 2010. On the dynamics of aggregate output, electricity consumption and exports in Malaysia: evidence from multivariate Granger causality tests. Applied Energy 87, 1963-1971.
 
[23]  Lee, C.C., Chang, C.P., 2008. Energy consumption and economic growth in Asian economies: a more comprehensive analysis using panel data. Resource and Energy Economics 30 (1), 50-65.
 
[24]  Lee, C.C., Chang, C.P., Chen, P.F., 2008. Energy–income causality in OECD countries revisited: the key role of capital stock. Energy Economics 30, 2359-2373.
 
[25]  Mahadevan, R., Asafu-Adjaye, J., 2007. Energy consumption, economic growth and prices: reassessment using panel VECM for developed and developing countries. Energy Policy 35, 2481-2490.
 
[26]  Masih, A. M. M; Masih, R., 1996. Energy consumption, real income and temporal causality: Results from a multi-country study based on cointegration and error-correction modelling techniques. Energy Economics 18, 165-183.
 
[27]  Mehrara, Mohsen., 2007. Energy consumption and economic growth: The case of oil exporting countries. Energy Policy, Elsevier 35, 2939-2945.
 
[28]  Morimoto, R., Hope, C., 2004. The Impact of Electricity Supply on Economic Growth in Sri Lanka. Energy Economics 26, 77-85.
 
[29]  Narayan, P.K, Smyth, R., 2008. Energy consumption and real GDP in G7 countries: New evidence from panel cointegration with structural breaks. Energy Economics 30, 2331-2341.
 
[30]  Odhiambo, N.M., 2009a. Electricity consumption and economic growth in South Africa: a trivariate causality test. Energy Economics 31, 635-640.
 
[31]  Odhiambo, N.M., 2009b. Energy consumption and economic growth nexus in Tanzania: an ARDL bounds testing approach. Energy Policy 37, 617-622.
 
[32]  Odularo, G.O. and Okonkwo, C., 2009. Does Energy Consumption Contribute to Economic Performance? Empirical Evidence from Nigeria. Journal of Economics and International Finance 1, 044-058.
 
[33]  Oh, W., & Lee, K., 2004. Causal relationship between energy consumption and GDP revisited: The case of Korea 1970–1999. Energy Economics 26, 51-59.
 
[34]  Olusegun, O.A., 2008. Energy consumption and Economic Growth in Nigeria: A Bounds Testing Co-inntegrative Approach. Journal of Economic Theory 2, 118-123.
 
[35]  Omotor, D.G. (2008). “Causality between Energy Consumption and Economic Growth in Nigeria.” Pakistan Journal of Social Sciences, Vol. 5 (8), pp. 827-835.
 
[36]  Ouedraogo, M., 2010. Electricity consumption and economic growth in Burkina Faso: a cointegration analysis. Energy Economics 3, 524-531.
 
[37]  Soytas, U., Sari, R., 2003. Energy Consumption and GDP: Causality Relationship in G-7 Countries and Emerging Markets. Energy Economics 25, 33-37.
 
[38]  Soytas, U., Sari, R., Ewing, B.T., 2007. Energy consumption, income, and carbon emissions in the United States. Ecol. Econ. 62, 482-489.
 
[39]  Stern, D.I., 1993. Energy and economic growth in the USA. Energy Economics 15, 137-150.
 
[40]  Stern, D.I., 2000. Multivariate cointegration analysis of the role of energy in the US macroeconomy. Energy Economics 22, 267-283.
 
[41]  Tang, C.F., 2008. A re-examination of the relationship between electricity con- sumption and economic growth in Malaysia. Energy Policy 36, 3077-3085.
 
[42]  Wolde-Rufael, Y., 2004. Disaggregated energy consumption and GDP: The experience of Shangai, 1952-1999. Energy Economics 26, 69-75.
 
[43]  Wolde-Rufael, Y., 2005. Energy demand and economic growth: The African Experience. Journal of Policy Modeling 27, 891-903.
 
[44]  Yang, H. Y., 2000. A Note of the Causal Relationship between Energy and GDP in Taiwan. Energy Economics 22, 309-317.
 
[45]  Yoo, S.H., 2005. Electricity consumption and economic growth: evidence from Korea. Energy Policy 33, 1627-1632.
 
[46]  Yu, E.S.H., Choi, J.Y., 1985. The causal relationship between energy and GNP: An International Comparison. Journal of Energy Development 10, 249-272.
 
[47]  Yu, E.S.H., Hwang, B.K., 1984. The relationship between energy and GNP: further results. Energy Economics. 6, 186-190.
 
[48]  Zhang, X.-P., Cheng, X.-M., 2009. Energy consumption, carbon emissions, and economic growth in China. Ecol. Econ. 68, 2706-2712.
 
Manuscript template