The relationship between disaggregate energy consumption and industrial production in the United States: An ARDL approach

2008-09-01
Sarı, Ramazan
Ewing, Bradley T.
Soytaş, Uğur
We re-examine the relationship between disaggregate energy consumption and industrial output, as well as employment, in the United States using the autoregressive distributed lag (ARDL) approach developed by Pesaran and Pesaran [Pesaran, M.H., Pesaran, B., 1997. Working with Microfit 4.0. Camfit Data Ltd, Cambridge] and Pesaran, Shin and Smith [Pesaran, M.H., Shin, Y., Smith, R.J., 2001. Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics 16; 289-326] In particular, we focus attention on the following energy consumption variables: coal, fossil fuels, conventional hydroelectric power, solar energy, wind energy, natural gas, wood, and waste. The sample period covers 2001:1-2005:6. Our results imply that real output and employment are long run forcing variables for nearly all measures of disaggregate energy consumption. (C) 2007 Elsevier B.V All rights reserved.

Citation Formats
R. Sarı, B. T. Ewing, and U. Soytaş, “The relationship between disaggregate energy consumption and industrial production in the United States: An ARDL approach,” ENERGY ECONOMICS, vol. 30, no. 5, pp. 2302–2313, 2008, Accessed: 00, 2020. [Online]. Available: https://hdl.handle.net/11511/47871.