Abstract
Estimating the relation between energy demand (or of any of its components such as electricity) and economic growth (GDP) is one of the classic applications of econometrics in the energy sector (see Bohi and Zimmerman, 1984; Dahl, 1994; or Table 4.2 for surveys). It is also an issue of high relevance for development and energy policies. Consider, for instance, that a government would like to introduce measures to control energy demand (say, an energy tax) to improve its environmental performance and to reduce its dependence on foreign imports. If energy consumption precedes or causes economic growth, such policies would hamper further economic development.
I would like to thank my colleagues Regis Bourbonnais, Carlo Pozzi and Marie Bessec for their expert comments during the preparation of this chapter, as well as Jacques Girod for his help in identifying the relevant literature on the subject. All have significantly contributed to the successful conclusion of this chapter. Any remaining errors of commission or omission are, of course, the sole responsibility of the author.
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Keppler, J.H. (2007). Causality and Cointegration between Energy Consumption and Economic Growth in Developing Countries. In: Keppler, J.H., Bourbonnais, R., Girod, J. (eds) The Econometrics of Energy Systems. Palgrave Macmillan, London. https://doi.org/10.1057/9780230626317_4
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DOI: https://doi.org/10.1057/9780230626317_4
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