Energy-output linkages in Australia: Implications for emissions reduction policies

Shahiduzzaman, Md. and Alam, Khorshed (2011) Energy-output linkages in Australia: Implications for emissions reduction policies. Journal of Applied Business and Economics, 12 (3). pp. 48-60. ISSN 1499-691X


The study investigates the long-run and dynamic relationships between energy consumption and output in Australia using a multivariate cointegration and causality framework. Using both Engle-Granger and Johansen cointegration approaches, the study finds that energy consumption and real Gross Domestic Product are cointegrated. The Granger causality tests suggest bidirectional Granger causality between energy consumption and real GDP, and Granger endogeineity in the system. Since the energy sector largely contributes to carbon emissions in Australia, we suggest that direct measures to reduce carbon by putting constraints on the energy consumption would pose significant economic costs for the Australian economy.

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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Permanent restricted access to Published Version due to published copyright policy.
Faculty/School / Institute/Centre: Historic - Faculty of Business and Law - School of Accounting, Economics and Finance
Date Deposited: 09 Jan 2012 02:53
Last Modified: 24 Apr 2017 06:29
Uncontrolled Keywords: energy consumption, gross domestic product, cointegration, causality
Fields of Research : 14 Economics > 1402 Applied Economics > 140202 Economic Development and Growth
14 Economics > 1402 Applied Economics > 140299 Applied Economics not elsewhere classified
14 Economics > 1403 Econometrics > 140305 Time-Series Analysis
Socio-Economic Objective: B Economic Development > 85 Energy > 8599 Other Energy > 859999 Energy not elsewhere classified

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