The relationship between energy consumption and economic growth: New evidence from Greece

Journal title ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT
Author/s Antonia Gkergki
Publishing Year 2021 Issue 2020/2
Language English Pages 23 P. 131-153 File size 287 KB
DOI 10.3280/EFE2020-002006
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This paper examines the relationship between the energy consumption and economic growth from 1968 to 2019 in Greece, by employing the vector error-correction model estimation. A series of econometric tests are employed concerning the stationary of the data, and the co-integration and the relationship among the variables during the long- and short-term. The em-pirical results suggest that there is no bidirectional relationship between economic growth and energy consumption. More specifically, GDP per capita does not affect the energy consump-tion of the three primary sources either in the long-term or the short-term. In other words, the economic crisis and its implications for GDP do not affect energy consumption, and they are not responsible for the considerable decrease in energy sources’ consumption. On the other hand, the energy consumption of oil and coal negatively affect the GDP per capita. These re-sults are different from previous studies’ conclusions for Greece; this is because the never been experienced before. These findings raise new research questions and also show the limi-tations of the Greek market, as it is regulated and controlled by the government.

Keywords: Energy consumption, economic development, non-renewable energy, Greece

Jel codes: O13, O47, Q32, Q43

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Antonia Gkergki, The relationship between energy consumption and economic growth: New evidence from Greece in "ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT" 2/2020, pp 131-153, DOI: 10.3280/EFE2020-002006