Analysis of Relationship between Economic Growth and Energy Consumption in Developed Countries

Abstract

This study examined the relationship between economic growth and energy consumption in the period 1986–2015 for 15 selected developed countries. In this study, in which the dynamic panel analysis method was used, cross-section dependence and homogeneity tests were taken into account. Accordingly, unit root and cointegration tests were decided. According to the cointegration test results, it has been determined that there is a long-term relationship between economic growth and energy consumption. The results obtained from the Dumitrescu-Hurlin causality test analysis show that there is a bidirectional causality relationship. As a result of the analysis, it has been concluded that economic growth and energy consumption are the causes of each other for the period of 1986–2015 in 15 selected developed countries. JEL Classification:O40, O13, C23. Doi: 10.28991/HEF-2022-03-01-06 Full Text: PDF

Keywords

• economic growth
• energy consumption
• panel data analysis.