The linkage between energy consumption and income in six emerging economies of Asia: an empirical analysis

Rafiq, Shuddhasattwa and Salim, Ruhul A. (2011) The linkage between energy consumption and income in six emerging economies of Asia: an empirical analysis. International Journal of Emerging Markets, 6 (1). pp. 50-73. ISSN 1746-8809

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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.

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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: The article can be viewed upon request from Permanent restricted access to published version due to publisher copyright policy.
Faculty/School / Institute/Centre: Current - USQ Other
Faculty/School / Institute/Centre: Current - USQ Other
Date Deposited: 22 May 2011 05:47
Last Modified: 19 Aug 2014 05:38
Uncontrolled Keywords: energy conservation; cointegration; error correction model; generalized variance decompositions; generalized impulse response functions
Fields of Research (2008): 14 Economics > 1402 Applied Economics > 140205 Environment and Resource Economics
16 Studies in Human Society > 1605 Policy and Administration > 160505 Economic Development Policy
14 Economics > 1403 Econometrics > 140302 Econometric and Statistical Methods
Fields of Research (2020): 38 ECONOMICS > 3801 Applied economics > 380105 Environment and resource economics
44 HUMAN SOCIETY > 4407 Policy and administration > 440703 Economic development policy
38 ECONOMICS > 3802 Econometrics > 380202 Econometric and statistical methods
Socio-Economic Objectives (2008): B Economic Development > 91 Economic Framework > 9101 Macroeconomics > 910103 Economic Growth
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