Rafiq, Shuddhasattwa (2008) Energy consumption and income in six Asian developing countries: a multivariate cointegration analysis. In: 2nd IAEE Asian Conference: Energy Security and Economic Development under Environmental Constraints in the Asia-Pacific Region, 5-7 Nov 2008, Perth, Western Australia.
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This article examines the short- and long-run causal relationship between energy consumption and GDP of six emerging economies of Asia. Based on cointegration and vector error correction modeling the empirical results show that there exists unidirectional short- and long-run causality running from energy consumption to GDP for China, uni-directional short-run causality from output to energy consumption for India, whilst bi-directional short-run causality for Thailand. Neutrality between energy consumption and income is found for Indonesia, Malaysia and Philippines. Both the generalized variance decompositions and impulse response functions confirm the direction of causality. These findings have important policy implications for the countries concerned. The results suggest that while India may directly initiate energy conservation measures, China and Thailand may opt for a balanced combination of alternative polices.
|Item Type:||Conference or Workshop Item (Commonwealth Reporting Category E) (Paper)|
|Additional Information:||This article copyrighted and reprinted by permission from the International Association for Energy Economics & United States Association for Energy Economics. The material first appeared in the online proceedings of the 28th USAEE/IAEE North American Conference, New Orleans, Louisiana, December, 2008. Visit IAEE at www.iaee.org This paper was awarded the Best Paper in the conference.|
|Uncontrolled Keywords:||energy conservation; cointegration; error correction model; generalized variance decompositions; generalized impulse response functions|
|Depositing User:||Dr Shuddhasattwa Rafiq|
|Date Deposited:||30 Jul 2010 09:33|
|Last Modified:||18 Jul 2011 06:48|
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