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Energy consumption and income in G-7 countries
Date
2006-10-01
Author
Soytaş, Uğur
Sarı, Ramazan
Metadata
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This work is licensed under a
Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License
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Several industrialized countries have signed the Kyoto Protocol, promising to reduce greenhouse gasses (GHG) emissions. To reduce or mitigate such emissions several policies including reducing energy consumption, increasing energy efficiency, decreasing energy intensity and forestation may be possible. The viability and effectiveness of each policy may differ due to country specific factors. This paper tries to assess the impact of a change in energy consumption on income and vice versa in G-7 countries. We employ multivariate cointegration, error correction models and generalized variance decompositions and uncover Granger causality relation between energy consumption and income in all countries. However, the direction of causality seems to differ across countries. This may suggest that although they are at the same level of economic development, different policy alternatives in support of the protocol may be available in each country. (c) 2006 Society for Policy Modeling. Published by Elsevier Inc. All rights reserved.
Subject Keywords
Energy consumption
,
Economic growth
,
Global warming
,
Cointegration
,
Vector error correction
,
Generalized variance decompositions
URI
https://hdl.handle.net/11511/45980
Journal
JOURNAL OF POLICY MODELING
DOI
https://doi.org/10.1016/j.jpolmod.2006.02.003
Collections
Department of Business Administration, Article
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U. Soytaş and R. Sarı, “Energy consumption and income in G-7 countries,”
JOURNAL OF POLICY MODELING
, pp. 739–750, 2006, Accessed: 00, 2020. [Online]. Available: https://hdl.handle.net/11511/45980.