Energy-growth long-term relationship under structural breaks. Evidence from Canada, 17 Latin American economies and the USA

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Energy-growth long-term relationship under structural breaks. Evidence from Canada, 17 Latin American economies and the USA. / Rodríguez-Caballero, Carlos Vladimir; Ventosa-Santaulària, Daniel.

In: Energy Economics, Vol. 61, 01.01.2017, p. 121-134.

Research output: Contribution to journal/Conference contribution in journal/Contribution to newspaper › Journal article › Research › peer-review

Bibtex

@article{51c9bc38f5de4d63bd3acb032db0792d,

title = "Energy-growth long-term relationship under structural breaks. Evidence from Canada, 17 Latin American economies and the USA",

abstract = "We study the relationship and the causal link between Electric Power Consumption, EPC, and Gross Domestic Product, GDP (both per capita) for 17 countries in Latin America, Canada and the USA. Considering that many of these economies underwent important economic crises in the last three decades, we therefore model the EPC-GDP relationship through a VEC specification that allows for structural breaks, along with a robust testing methodology of causal links based on the concepts of weak and super exogeneity, rather than Granger causality. Evidence favorable to the growth hypothesis (EPC→GDP) is found for eight countries, while data of three countries support the conservation hypothesis (GDP→EPC). For three countries evidence is favorable to the neutrality hypothesis, but should be considered with caution. As for the remaining five countries the evidence is not conclusive.",

keywords = "Causal links, Economic growth, Energy consumption, Structural breaks, VECM",

author = "Rodr{\'i}guez-Caballero, {Carlos Vladimir} and Daniel Ventosa-Santaul{\`a}ria",

year = "2017",

month = jan,

day = "1",

doi = "10.1016/j.eneco.2016.10.026",

language = "English",

volume = "61",

pages = "121--134",

journal = "Energy Economics",

issn = "0140-9883",

publisher = "Elsevier BV",

}

RIS

TY - JOUR

T1 - Energy-growth long-term relationship under structural breaks. Evidence from Canada, 17 Latin American economies and the USA

AU - Rodríguez-Caballero, Carlos Vladimir

AU - Ventosa-Santaulària, Daniel

PY - 2017/1/1

Y1 - 2017/1/1

N2 - We study the relationship and the causal link between Electric Power Consumption, EPC, and Gross Domestic Product, GDP (both per capita) for 17 countries in Latin America, Canada and the USA. Considering that many of these economies underwent important economic crises in the last three decades, we therefore model the EPC-GDP relationship through a VEC specification that allows for structural breaks, along with a robust testing methodology of causal links based on the concepts of weak and super exogeneity, rather than Granger causality. Evidence favorable to the growth hypothesis (EPC→GDP) is found for eight countries, while data of three countries support the conservation hypothesis (GDP→EPC). For three countries evidence is favorable to the neutrality hypothesis, but should be considered with caution. As for the remaining five countries the evidence is not conclusive.

AB - We study the relationship and the causal link between Electric Power Consumption, EPC, and Gross Domestic Product, GDP (both per capita) for 17 countries in Latin America, Canada and the USA. Considering that many of these economies underwent important economic crises in the last three decades, we therefore model the EPC-GDP relationship through a VEC specification that allows for structural breaks, along with a robust testing methodology of causal links based on the concepts of weak and super exogeneity, rather than Granger causality. Evidence favorable to the growth hypothesis (EPC→GDP) is found for eight countries, while data of three countries support the conservation hypothesis (GDP→EPC). For three countries evidence is favorable to the neutrality hypothesis, but should be considered with caution. As for the remaining five countries the evidence is not conclusive.

KW - Causal links

KW - Economic growth

KW - Energy consumption

KW - Structural breaks

KW - VECM

UR - http://www.scopus.com/inward/record.url?scp=84997840955&partnerID=8YFLogxK

U2 - 10.1016/j.eneco.2016.10.026

DO - 10.1016/j.eneco.2016.10.026

M3 - Journal article

AN - SCOPUS:84997840955

VL - 61

SP - 121

EP - 134

JO - Energy Economics

JF - Energy Economics

SN - 0140-9883

ER -

Department of Economics and Business Economics