Relationship between Energy Consumption and Economic Growth in European Countries: Evidence from Dynamic Panel Data Analysis
The aim of the article is to empirically verify the relationship between energy consumption and economic growth. The time scope of this study covers the period of 2008–2019. The scope of analyzed subjects covers 34 European countries, 27 of which are currently members of the European Union. European...
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| Format: | Article |
| Language: | English |
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MDPI AG
2021-06-01
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| Series: | Energies |
| Subjects: | |
| Online Access: | https://www.mdpi.com/1996-1073/14/12/3565 |
| _version_ | 1797530045590274048 |
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| author | Łukasz Topolewski |
| author_facet | Łukasz Topolewski |
| author_sort | Łukasz Topolewski |
| collection | DOAJ |
| description | The aim of the article is to empirically verify the relationship between energy consumption and economic growth. The time scope of this study covers the period of 2008–2019. The scope of analyzed subjects covers 34 European countries, 27 of which are currently members of the European Union. European countries consume large amounts of energy, so it is worth investigating the effect of reducing energy consumption on the process of economic growth. For this purpose, dynamic panel models were used. The research methods included the use of dynamic panel models, taking into account the Arellano and Bond and Blundell and Bond estimators. The results made it possible to identify the relationship between energy consumption and economic growth. It was found that, in the short term, increases in production will result in a statistically significant increase in energy consumption. Importantly, in the long term, this impact is also statistically significant and positive. On the other hand, taking into account the second of the estimated models, it can be concluded that, in the short term, increases in energy consumption do not cause changes in the rate of economic growth. The verification of this relationship in the long term also does not confirm it. In summary, it can be stated that a one-way relationship (in the short and in the long term), directed from economic growth towards energy consumption, was identified. |
| first_indexed | 2024-03-10T10:23:21Z |
| format | Article |
| id | doaj.art-493bc803cd65480db674faeaeb4dc828 |
| institution | Directory Open Access Journal |
| issn | 1996-1073 |
| language | English |
| last_indexed | 2024-03-10T10:23:21Z |
| publishDate | 2021-06-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Energies |
| spelling | doaj.art-493bc803cd65480db674faeaeb4dc8282023-11-22T00:14:35ZengMDPI AGEnergies1996-10732021-06-011412356510.3390/en14123565Relationship between Energy Consumption and Economic Growth in European Countries: Evidence from Dynamic Panel Data AnalysisŁukasz Topolewski0Department of Economics, Faculty of Economic Sciences and Management, Nicolaus Copernicus University in Toruń, Gagarina 13A, 87-100 Toruń, PolandThe aim of the article is to empirically verify the relationship between energy consumption and economic growth. The time scope of this study covers the period of 2008–2019. The scope of analyzed subjects covers 34 European countries, 27 of which are currently members of the European Union. European countries consume large amounts of energy, so it is worth investigating the effect of reducing energy consumption on the process of economic growth. For this purpose, dynamic panel models were used. The research methods included the use of dynamic panel models, taking into account the Arellano and Bond and Blundell and Bond estimators. The results made it possible to identify the relationship between energy consumption and economic growth. It was found that, in the short term, increases in production will result in a statistically significant increase in energy consumption. Importantly, in the long term, this impact is also statistically significant and positive. On the other hand, taking into account the second of the estimated models, it can be concluded that, in the short term, increases in energy consumption do not cause changes in the rate of economic growth. The verification of this relationship in the long term also does not confirm it. In summary, it can be stated that a one-way relationship (in the short and in the long term), directed from economic growth towards energy consumption, was identified.https://www.mdpi.com/1996-1073/14/12/3565energy consumptioneconomic growthEuropean countriesdynamic panel model |
| spellingShingle | Łukasz Topolewski Relationship between Energy Consumption and Economic Growth in European Countries: Evidence from Dynamic Panel Data Analysis Energies energy consumption economic growth European countries dynamic panel model |
| title | Relationship between Energy Consumption and Economic Growth in European Countries: Evidence from Dynamic Panel Data Analysis |
| title_full | Relationship between Energy Consumption and Economic Growth in European Countries: Evidence from Dynamic Panel Data Analysis |
| title_fullStr | Relationship between Energy Consumption and Economic Growth in European Countries: Evidence from Dynamic Panel Data Analysis |
| title_full_unstemmed | Relationship between Energy Consumption and Economic Growth in European Countries: Evidence from Dynamic Panel Data Analysis |
| title_short | Relationship between Energy Consumption and Economic Growth in European Countries: Evidence from Dynamic Panel Data Analysis |
| title_sort | relationship between energy consumption and economic growth in european countries evidence from dynamic panel data analysis |
| topic | energy consumption economic growth European countries dynamic panel model |
| url | https://www.mdpi.com/1996-1073/14/12/3565 |
| work_keys_str_mv | AT łukasztopolewski relationshipbetweenenergyconsumptionandeconomicgrowthineuropeancountriesevidencefromdynamicpaneldataanalysis |