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.
History
Pagination
1-25
Location
Perth, Western Australia
Start date
2008-11-05
End date
2008-11-07
Language
eng
Publication classification
EN.1 Other conference paper
Copyright notice
2008, IAEE
Editor/Contributor(s)
[Unknown]
Title of proceedings
IAEE 2008 : Proceedings of the 2nd Asian Conference on Energy Security and Economic Development under Environmental Constraints in the Asia-Pacific Region
Event
Energy Security and Economic Development under Environmental Constraints in the Asia-Pacific Region. Asian Conference (2nd: 2008: Perth, Western Australia)