The Causality between Energy Consumption and Economic Growth: A Time Series Analysis from the Nepalese Evidence
Year: 2019
Type: preprint
Abstract: Energy consumption and economic growth has been holding global attention, specially the non-renewable energy. This study has examined the time series data and attempt to analyze long term relationship and causal relation between energy consumption and economic growth. The Granger causality test, Augmented Dickey Fuller test and ordinary least square (with BLUE) properties have used to examine the relationship. The regression holds BLUE properties and the variables are co-integrated, there is linear gap between variables. There exists causal relationship between variables. The empirical result shows that the technology, government development expenditure, price and GDP are the most prominent explaining variables. The Technology and government development expenditure hold significant positive relationship with the energy consumption. The price and GDP growth rate hold mixed relation with significant explaining power. However, the inflation rate, exchange rate, value added tax hold less power to explain energy consumption.
Source: SSRN Electronic Journal
Author: Shiba Prasad Sapkota
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W3204426073