Linear and Nonlinear Causality between Energy Consumption and Economic Growth: The Case of Mexico 1965–2014
This paper analyzes the causal link between aggregated and disaggregated levels of energy consumption and economic growth in Mexico between 1965 and 2014, with the presence of structural breaks stemming from the series. To that end, unit root with structural breaks, cointegration, and linear and non...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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MDPI AG
2018-03-01
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| Series: | Energies |
| Subjects: | |
| Online Access: | http://www.mdpi.com/1996-1073/11/4/784 |
| _version_ | 1811263738509000704 |
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| author | Mario Gómez Aitor Ciarreta Ainhoa Zarraga |
| author_facet | Mario Gómez Aitor Ciarreta Ainhoa Zarraga |
| author_sort | Mario Gómez |
| collection | DOAJ |
| description | This paper analyzes the causal link between aggregated and disaggregated levels of energy consumption and economic growth in Mexico between 1965 and 2014, with the presence of structural breaks stemming from the series. To that end, unit root with structural breaks, cointegration, and linear and nonlinear causality tests are employed. The results show that there is a long-run relationship between production, capital, labor, and energy, and linear causal links from total and disaggregated energy consumption to economic growth. A nonlinear causality also exists from energy consumption, the transport sector, capital, and labor to output. These results support the growth hypothesis, which maintains that energy is an important input factor for economic activity and that energy conservation policies impact the economic growth in Mexico. |
| first_indexed | 2024-04-12T19:50:37Z |
| format | Article |
| id | doaj.art-14b8f5fe8f0e4a6699b8a6d18e63bbe5 |
| institution | Directory Open Access Journal |
| issn | 1996-1073 |
| language | English |
| last_indexed | 2024-04-12T19:50:37Z |
| publishDate | 2018-03-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Energies |
| spelling | doaj.art-14b8f5fe8f0e4a6699b8a6d18e63bbe52022-12-22T03:18:50ZengMDPI AGEnergies1996-10732018-03-0111478410.3390/en11040784en11040784Linear and Nonlinear Causality between Energy Consumption and Economic Growth: The Case of Mexico 1965–2014Mario Gómez0Aitor Ciarreta1Ainhoa Zarraga2Instituto de Investigaciones Económicas y Empresariales (Economic and Business Research Institute), Universidad Michoacana de San Nicolás de Hidalgo, Edificio ININEE, Ciudad University, C.P. 58030, Morelia, Mich., MexicoDepartment of Economic Analysis II, University of the Basque Country (UPV/EHU), Avda. Lehendakari Aguirre, 83, 48015 Bilbao, SpainDepartment of Applied Economics III (Econometrics and Statistics), University of the Basque Country (UPV/EHU), Avda. Lehendakari Aguirre, 83, 48015 Bilbao, SpainThis paper analyzes the causal link between aggregated and disaggregated levels of energy consumption and economic growth in Mexico between 1965 and 2014, with the presence of structural breaks stemming from the series. To that end, unit root with structural breaks, cointegration, and linear and nonlinear causality tests are employed. The results show that there is a long-run relationship between production, capital, labor, and energy, and linear causal links from total and disaggregated energy consumption to economic growth. A nonlinear causality also exists from energy consumption, the transport sector, capital, and labor to output. These results support the growth hypothesis, which maintains that energy is an important input factor for economic activity and that energy conservation policies impact the economic growth in Mexico.http://www.mdpi.com/1996-1073/11/4/784causalityeconomic growthstructural breaksenergy consumptionMexico |
| spellingShingle | Mario Gómez Aitor Ciarreta Ainhoa Zarraga Linear and Nonlinear Causality between Energy Consumption and Economic Growth: The Case of Mexico 1965–2014 Energies causality economic growth structural breaks energy consumption Mexico |
| title | Linear and Nonlinear Causality between Energy Consumption and Economic Growth: The Case of Mexico 1965–2014 |
| title_full | Linear and Nonlinear Causality between Energy Consumption and Economic Growth: The Case of Mexico 1965–2014 |
| title_fullStr | Linear and Nonlinear Causality between Energy Consumption and Economic Growth: The Case of Mexico 1965–2014 |
| title_full_unstemmed | Linear and Nonlinear Causality between Energy Consumption and Economic Growth: The Case of Mexico 1965–2014 |
| title_short | Linear and Nonlinear Causality between Energy Consumption and Economic Growth: The Case of Mexico 1965–2014 |
| title_sort | linear and nonlinear causality between energy consumption and economic growth the case of mexico 1965 2014 |
| topic | causality economic growth structural breaks energy consumption Mexico |
| url | http://www.mdpi.com/1996-1073/11/4/784 |
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