Economic growth, fossil fuel and non-fossil consumption: a Pooled Mean Group analysis using proxies for capital

Asafu-Adjaye, John, Byrne, Dominic and Alvarez, Maximiliano (2016) Economic growth, fossil fuel and non-fossil consumption: a Pooled Mean Group analysis using proxies for capital. Energy Economics, 60 345-356. doi:10.1016/j.eneco.2016.10.016

Attached Files (Some files may be inaccessible until you login with your UQ eSpace credentials)
Name Description MIMEType Size Downloads
UQ412110_OA.pdf Full text (open access) application/pdf 587.55KB 0

Author Asafu-Adjaye, John
Byrne, Dominic
Alvarez, Maximiliano
Title Economic growth, fossil fuel and non-fossil consumption: a Pooled Mean Group analysis using proxies for capital
Journal name Energy Economics   Check publisher's open access policy
ISSN 0140-9883
Publication date 2016-11-01
Year available 2016
Sub-type Article (original research)
DOI 10.1016/j.eneco.2016.10.016
Open Access Status File (Author Post-print)
Volume 60
Start page 345
End page 356
Total pages 12
Place of publication Amsterdam, Netherlands
Publisher Elsevier
Language eng
Subject 2002 Economics and Econometrics
2100 Energy
Abstract This study employs a Pooled Mean Group estimator to examine the nexus between economic growth and fossil and non-fossil fuel consumption for 53 countries between 1990 and 2012. The global sample was divided into four categories: developed exporters, developed importers, developing exporters and developing importers. The purpose of these categories was to observe whether factors unique to these countries influence the relationship between energy consumption and economic growth. With the exception of developing importers, evidence of bi-directional causality between fossil fuel consumption and real GDP across all subsamples is observed. This leads to the conclusion that efforts to directly conserve fossil fuels may harm economic growth. In terms of non-fossil fuel use, the results are more diverse. Bi-directional causality between non-fossil fuel use and real GDP is found in the long and short run for developed importers; bi-directional causality only in the long run for developed exporters; negative long-run causality from real GDP to non-fossil fuels for developing exporters; and long-run causality from non-fossil fuel use to real GDP for developing importers. These results lead to the conclusion that other factors have been responsible for the progress seen in non-fossil fuel use. Thus it is concluded that economic growth on its own is insufficient to promote clean energy development. There is a need for policy makers to create an environment conducive to renewable energy investment.
Keyword Economic growth
Fossil fuel consumption
Granger causality
Non-fossil fuel consumption
Pool Mean Group estimation
Q-Index Code C1
Q-Index Status Provisional Code
Institutional Status UQ

Document type: Journal Article
Sub-type: Article (original research)
Collections: HERDC Pre-Audit
School of Economics Publications
Version Filter Type
Citation counts: TR Web of Science Citation Count  Cited 0 times in Thomson Reuters Web of Science Article
Scopus Citation Count Cited 0 times in Scopus Article
Google Scholar Search Google Scholar
Created: Tue, 22 Nov 2016, 10:55:53 EST by System User on behalf of Learning and Research Services (UQ Library)