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Investigating energy consumption and economic growth for BRICS-T countries

Investigating energy consumption and economic growth for BRICS-T countries The purpose of this paper is to explore the relationship between energy consumption and economic growth for Brazil, Russia, China, India, South Africa and Turkey (BRICS-T) countries. In this context, this study investigates energy consumption and real output in BRICS-T countries through panel cointegration.Design/methodology/approachThe data include energy consumption and real output for BRICS-T countries and period of 1990–2014. The variables are transformed into natural logarithm. To analyze these data, this study employed Pedroni cointegration test, the second-generation panel cointegration test, Westerlund and Edgerton (2008) test and FMOLS test.FindingsResults indicate that there is a bi-directional causality relationship between energy consumption and economic growth for BRICS-T countries. An increase in GDP leads to an increase in energy consumption and an increase in energy consumption leads to an increase in GDP.Research limitations/implicationsThis study used data that include the period of 1990–2014 for BRICS-T countries. So, further studies can use different periods of data or different countries.Originality/valueThis study provides important evidence that countries with strong growth performance need to follow bi-directional energy policies to increase both energy investments and ensure energy savings. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png World Journal of Science, Technology and Sustainable Development Emerald Publishing

Investigating energy consumption and economic growth for BRICS-T countries

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Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
2042-5945
DOI
10.1108/wjstsd-12-2018-0063
Publisher site
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Abstract

The purpose of this paper is to explore the relationship between energy consumption and economic growth for Brazil, Russia, China, India, South Africa and Turkey (BRICS-T) countries. In this context, this study investigates energy consumption and real output in BRICS-T countries through panel cointegration.Design/methodology/approachThe data include energy consumption and real output for BRICS-T countries and period of 1990–2014. The variables are transformed into natural logarithm. To analyze these data, this study employed Pedroni cointegration test, the second-generation panel cointegration test, Westerlund and Edgerton (2008) test and FMOLS test.FindingsResults indicate that there is a bi-directional causality relationship between energy consumption and economic growth for BRICS-T countries. An increase in GDP leads to an increase in energy consumption and an increase in energy consumption leads to an increase in GDP.Research limitations/implicationsThis study used data that include the period of 1990–2014 for BRICS-T countries. So, further studies can use different periods of data or different countries.Originality/valueThis study provides important evidence that countries with strong growth performance need to follow bi-directional energy policies to increase both energy investments and ensure energy savings.

Journal

World Journal of Science, Technology and Sustainable Development – Emerald Publishing

Published: Sep 13, 2019

Keywords: Economic growth; Energy consumption; Panel cointegration; BRICS-T

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