Economic growth and energy consumption in 12 European countries: a panel data approach

Information
Title: Economic growth and energy consumption in 12 European countries: a panel data approach
Issue: Vol. 7, No 3, 2014
Published date: 20-11-2014 (print) / 20-11-2014 (online)
Journal: Journal of International Studies
ISSN: 2071-8330, eISSN: 2306-3483
Authors: Rafał Kasperowicz
Keywords: energy consumption, economic growth, EU
DOI: 10.14254/2071-8330.2014/7-3/10
DOAJ: https://doaj.org/article/f4292a0a680a45d8b55bb12c085efb11
Language: English
Pages: 112-122 (11)
Website: http://www.jois.eu/files/Vol_7_2_Rafal_Kasperowicz.pdf
File https://www.jois.eu/files/Vol_7_2_Rafal_Kasperowicz.pdf
Abstract

The paper investigates the relationships between energy consumption and economic growth for 12 European countries over 13 years using data for the sample period of 2000 to 2012. Understanding the relationships of energy consumption in relation to the economy is very important task to ensure a stable economic development. The hypothesis of the study says that there is a positive relationship between energy use and economic growth. The estimation of GDP equation indicated that that the energy consumption is positive related to the economic growth. The evaluated regression model includes growth rates of Energy Consumption and growth rates of Gross Fixed Capital in real prices. The analysis let to state that in the analyzed countries energy consumption is not neutral to economic growth. Furthermore, the applied modeling pointed the individual growth rate effect of GDP for every country, that was not captured by the estimated model.