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DYNAMICS OF TECHNOLOGICAL INNOVATION, ENERGY CONSUMPTION, ENERGY PRICE AND ECONOMIC GROWTH IN DENMARK
- Publication Year :
- 2019
-
Abstract
- WOS: 000455504600004<br />This study investigates the dynamic relationships between technological innovation, consumption of energy, energy price, and economic growth in Denmark during the period from 1970 until 2012, using multivariate setting to examine time-series data. The analysis employs the autoregressive distributed lag (ARDL) approach to co-integration to examine both the short and long run dynamics among the variables. Furthermore, the study uses the Granger procedure within the VAR framework to identify causality among the variables. The model used in this study is found to be sound, a diagnosis of the reliability of the model reached by testing normality, functional form, serial correlation, and heteroscedasticity, with stability of the model tested using a cumulative sum and cumulative sum square test, based on recursive regression residuals. The ARDL approach to co-integration reveals that real GDP growth positively influences energy consumption as well as significantly in both the short run and long run, while energy prices and technological innovation influence energy consumption negatively and significantly. The results ascertain that energy consumption and economic growth are independent of each other, and thus they support a neutral hypothesis for Denmark. Besides, both the technological innovation and energy prices are found to be Granger cause energy consumption. Therefore, the study suggests that Denmark should adopt conservative energy policy using technological innovation and energy prices as instruments to achieve energy security and protect the environment from pollution.
- Subjects :
- Distributed lag
Heteroscedasticity
Environmental Engineering
bepress|Social and Behavioral Sciences|Economics
Denmark
020209 energy
General Chemical Engineering
Energy Consumption
02 engineering and technology
010501 environmental sciences
01 natural sciences
Energy policy
technological innovation
Economic Growth
energy consumption
0202 electrical engineering, electronic engineering, information engineering
Economics
Econometrics
Environmental Chemistry
Waste Management and Disposal
0105 earth and related environmental sciences
General Environmental Science
Water Science and Technology
Consumption (economics)
Short run
Renewable Energy, Sustainability and the Environment
SocArXiv|Social and Behavioral Sciences|Economics
Energy security
Energy consumption
Technological innovation
bepress|Social and Behavioral Sciences|Economics|Finance
economic growth
SocArXiv|Social and Behavioral Sciences|Economics|Finance
Real gross domestic product
Energy Price
bepress|Social and Behavioral Sciences
SocArXiv|Social and Behavioral Sciences
energy price
Subjects
Details
- Database :
- OpenAIRE
- Accession number :
- edsair.doi.dedup.....aaafe858366b49796b05332c70852fd3