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Energy consumption and income in six Asian developing countries: a multivariate cointegration analysis

conference contribution
posted on 2008-11-08, 00:00 authored by Shuddha RafiqShuddha Rafiq
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)

Publisher

IAEE

Place of publication

Cleveland, Oh.