Search

The current paper seeks to examine the relationship between energy consumption and real output in the United Arab Emirates (UAE) economy. Technically, we assess the following two questions: 'does the increase in energy consumption cause more economic growth in the UAE economy?' or 'does the rapid economic growth lead to more energy consumption?' We utilise the bounds testing approach to cointegration and error correction model and Granger causality test to achieve the paper goal. The paper employs an annual data series of the UAE real gross domestic product and energy consumption over the 1973-2008 period. The findings of the paper have two levels: short-run and long-run. In the short-run, the results reveal a clear statistically significant bidirectional positive relationship between energy consumption and real output in the UAE economy. However, in the long-run the estimate illustrates only one relationship prevails from the short-run. This one is the statistically significant positive unidirectional relationship running from real output to energy consumption. [ABSTRACT FROM AUTHOR]

This paper investigates the impact of growing e-car deployment on global crude oil demand, by determining the impact factors of total vehicles-in-use. It further sets out the impact on global fuel consumption and global crude oil demand. Both effects are compared with a benchmark scenario excluding e-car deployment. A 25-year simulation of the three different demand functions is performed and finds significant impact on fuel demand, but less significant impact on crude oil demand, since gasoline is just a partial fraction of crude oil and most of global crude oil demand depends on global economic development. The conclusion of this paper is that we find fuel demand to peak earliest in 2021, followed by a subsequent decline to today's levels, assuming that e-car market share development follows a Rayleigh distribution. Based on a car manufacturer survey by KPMG, which indicates a 10 per cent e-car market share in 10 years, the e-car sales function is adapted to this estimation. At the same time, global crude oil demand is found to peak in 2025 in case of 10 per cent e-car market share, in 2026 in the case of 8 per cent e-car market share and in 2030 in case of a 6 per cent e-car market share in 10 years. Until 2040, the increase in crude oil demand is found to be 25 per cent slower in the 10 per cent market share case, 20 per cent slower in the 8 per cent market share case and 15 per cent slower in the 6 per cent market share case than compared with global crude oil demand without any e-cars deployed. [ABSTRACT FROM AUTHOR]

Though voluminous empirical studies examine the linkage between energy consumption (EC) and economic growth, the impact of human capital on EC is scarce. This paper investigates this research issue by using annual data of 73 countries over the period 1990–2014. Furthermore, we classify 73 countries based on income (developed, developing and emerging economies) and regions (Asia, Africa, Europe and Latin America). The empirical results indicate that human capital negatively affects EC. This implies that EC can be lowered by improving human capital, which ultimately can help in energy conservation and environmental protection. Policies promoting substitutability between energy inputs and human capital, and structural policies like improving economic efficiency and improving human capital through educational levels can help economies in achieving greater sustainable growth with low EC. [ABSTRACT FROM AUTHOR]

Energy is one of the most important influential factors on economic growth. In recent decades, upward trend of energy consumption has caused many concerns about decrease in energy source and increase in pollution and global warming. Iran as one of the greatest oil and natural gas exporters with high consumption of gas, oil and electricity faces with pollution problems in cities and hence the necessity of a plan to decrease the energy consumption. In this paper, we study demand of energy consumption and predict consumption of diverse kinds of energy during 2010-2018. In this regard, by adopting Bayesian approach and with concern to data of 1970-2009, we forecast the trends of energy consumption. The result showed that during recent years, up to the average growth rate of energy consumption is equal to 1.8 per cent. The slower growth of energy consumption leads to a slower economic growth and in turn, causes a decline in energy consumption due to the structural changes in the Iran economy. [ABSTRACT FROM AUTHOR]

This paper investigates the dynamic causal relationship between energy consumption, human capital investment and economic growth in South Africa for the period 1960-2015 within the vector error correction model ( VECM) framework. It was revealed that there is cointegration among the variables. The causality test result reveals that there exists a long-run bi-directional relationship between economic growth and energy consumption. While on the other hand, a long-run unidirectional causal relationship was discovered running from economic growth and energy consumption to social and economic infrastructure investment. This justifies the government's massive investment in the energy sector which is aimed at meeting the increasing energy demand. However, the lack of feedback from social infrastructural investment may imply that the focus social infrastructure investment is not adequate to granger cause growth or due to high inequality and unemployment in the country which will require more investment attention for it to significantly affect growth. The government, therefore, should give priority to the provision of both social and economic infrastructure investment and implementation of policies that are aimed at human capital development through public empowerment so that they can support the economy instead of depending on the government. [ABSTRACT FROM AUTHOR]

This paper investigates Granger causality between electricity consumption and Nigerian real GDP, using Vector Error Correction ( VEC) Granger Causality/ Block Exogeneity Wald Test. The empirical result supports long run bidirectional relationship, which means that electricity consumption predicts economic growth and vice versa in the country, though causality from electricity consumption to economic growth is stronger. This finding is evidence in support of the country's electricity deregulation and reform programme, which is a core component of various projects towards the realisation of Transformation Agenda ( TA) and Vision 20: 2020, in which Nigeria aims to become one of the 20 largest economies by the year 2020. [ABSTRACT FROM AUTHOR]

This paper examines the relationship between energy consumption and real gross domestic product ( GDP) per capita for the 15 former Soviet Union countries during the period 1992-2009. These countries have been rarely investigated with regard to the related nexus in the literature despite the important role of these countries in energy markets as producers and consumers. Panel unit root tests, panel cointegration tests and panel vector error correction model in a dynamic panel framework are employed to infer the causal relationship. The empirical results show that there is a unidirectional causal relationship running from energy consumption to the real GDP per capita in the long run but not in the short-run for the former Soviet Union countries and Commonwealth Independent States countries regardless Russia is included or excluded. However, we discover a bidirectional relationship for oil importer and natural gas importer countries. Therefore, the findings of this study support the growth hypothesis for the former subsegments and feedback hypothesis for the latter subsegments. [ABSTRACT FROM AUTHOR]

This paper studies the causal relationships between energy consumption and economic growth for OPEC countries using cointegration and error-correction modelling techniques. The results indicate that in the short run, the Granger causality runs from income to energy consumption for Iran, Iraq, Qatar, United Arab Emirates and Saudi Arabia, while for the rest of the Organization of Petroleum Exporting Countries (OPEC) countries, the reverse is true, i.e. the Granger causality runs from energy consumption to income. However, in the long run, there is not any Granger causality relationship for all the OPEC countries. In the case of Qatar and the Saudi Arabia and Nigeria, energy, economic growth and prices are not mutually causal. Results show, that even for these countries, which the energy consumption has an effect on economic growth, the effect is very minimal. The direction of causation between energy consumption and economic growth has significant policy implications. If there exists unidirectional Granger causality running from income to energy, it may be implied that energy conservation policies may be implemented with little adverse or no effects on economic growth. In the case of negative causality running from economic growth to energy, economic growth could rise if energy conservation policy were to be implemented. In other words, if unidirectional causality runs from energy consumption to income, reducing energy consumption could lead to a fall in economic growth. One can conclude that for all of the OPEC countries, the theory of resource curse holds. Hence, substantial energy consumption is not likely to bring about significant economic growth but an increase in CO2 emissions. In this regard, it is very important for those low-income OPEC countries to adopt appropriate energy policies in order to promote their economic growth. [ABSTRACT FROM AUTHOR]

This study exposes the potential role of financial development to determine economic growth and utilisation of energy. Moreover, it also identifies how information communication technology (ICT) moderates this relationship. By sampling a large range of data from 138 economies for the year 1980–2020, the current study employs the panel least square model to test the regression. The result reveals that economic growth and information communication technology have a positive significant impact on energy utilisation. Financial advancement has a direct significant effect on energy utilisation and economic growth. Similarly, the moderating role of ICT was also observed in the current analysis. The current analysis guides policymakers on the relevant role of financial development in improving the economic status and consumption of energy. The policymakers in these various countries should balance the connection between the supply and demand of energy to accomplish the sustained development of the economies. Furthermore, the analysis speaks about the significance of ICT in boosting energy consumption and gives an important policy recommendation regarding the role of ICT both in economic growth and energy utilisation. [ABSTRACT FROM AUTHOR]

The 19739/74 and 1979/1980 oil price shocks coupled with the unreliability of its supply as against the ever-increasing demand for energy-based inputs, further reinforced the stern implications that energy may have on economic development reducing energy intensity is often advocated as a way to ensure efficient utilisation of energy resources and minimising the adverse effects of its shortage on economic development. Using the annual time series data set spanning 1981-2014 this study examined, in Ghana where energy crises continue to immense adverse effects on the economy, the relationships between energy consumption and economic growth at the one hand, and that between energy intensity and economic growth on the other hand within the standard Environmental Kuznets Curve framework. In Autoregressive Distributed Lagged model estimation, there was strong evidence of the existence of a valid long-run relationship between energy consumption and economic growth as well as energy intensity and economic growth. [ABSTRACT FROM AUTHOR]

The ton–kilometre performed as a measure of world air traffic grew 6.1 per cent annually during the last three decades despite many impediments during this period, such as the Asian financial crisis, severe acute respiratory syndrome outbreak, wars in the Middle East and many security-related events. Although all of the world's regions are experiencing fast growth, the aviation traffic pattern varies by region. However, the traffic growth led to more demand for aviation fuel. World aviation oil demand was 1.18 mb/d in 1971. It experienced an annual growth rate of 2.9 per cent, 0.2 per cent ahead of the transportation sector growth rate, and reaching 4.9 mb/d in 2006. With this consumption level, the aviation sector is the second major consumer with an 11.2 per cent share in total oil demand in the transportation sector. The aviation sector burns about 5.8 per cent of total oil consumed in the world. Technology improvement and better load management among other factors caused ongoing improvement in energy efficiency. Regional econometric modelling showed that aviation fuel demand is inelastic to aviation fuel prices despite their inverse impacts on financial balances of individual airliners. The fuel demand is highly responsive to aviation traffic that in turn is mainly a function of economic growth. Elasticises of fuel demand and aviation traffic confirmed the continuation of the ongoing energy intensity decline in the aviation sector by all the regions of the world. In the reference case, aviation incremental fuel demand will be 2.7 mb/d in 2030, which would leave aviation demand at 7.8 mb/d in the same year. Most of the incremental demand, i.e. 0.75 mb/d, will be contributed by China. [ABSTRACT FROM AUTHOR]