Rafiq, Shuddhasattwa (2008) Energy consumption and output: time series evidence from non-OECD Asian countries. In: 2008 USAEE (USA Association of Energy Economics) / IAEE North American Conference, 3-5 Dec 2008, New Orleans, USA.
PDF (Published Version - Abstract)
This article examines the short- and long-run causal relationship between energy consumption and output in six non-OECD Asian developing countries. Standard time series econometrics is used for this purpose. Based on cointegration and vector error correction modeling, the empirical result shows a bi-directional causality between energy consumption and income in Malaysia, while a unidirectional causality from output to energy consumption in China and Thailand and energy consumption to output in India and Pakistan. Bangladesh remains as an energy neutral economy confirming the fact that it is one of the lowest energy consuming countries in Asia. Both the generalized variance decompositions and the impulse response functions confirm the direction of causality in these countries. These findings have important policy implications for concerned countries. Countries like China and Thailand may contribute to the fight against global warming directly implementing energy conservation measures whereas India and Pakistan may focus on technological developments and mitigation policies. For Malaysia, a balanced combination of alternative policies seems to be appropriate.
|Item Type:||Conference or Workshop Item (Commonwealth Reporting Category E) (Paper)|
|Additional Information:||Abstract deposited in accordance with the copyright policy of the publisher.|
|Uncontrolled Keywords:||energy conservation, cointegration, error correction model, generalized variance decompositions, generalized impulse response functions|
|Depositing User:||Dr Shuddhasattwa Rafiq|
|Date Deposited:||31 Jul 2010 03:09|
|Last Modified:||02 Jul 2013 23:55|
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