Energy Consumption-Economic Growth Nexus: Does the Level of Aggregation Matter?

Authors

  • Mehdi Abid Institute of Management of Sousse, Rue Abedelaziz El Bahi B.P. 763 - 4000 Sousse. University of Sousse.
  • Maamar Sebri Institute of Management of Sousse, Rue Abedelaziz El Bahi B.P. 763 - 4000 Sousse. University of Sousse.

Abstract

This study investigates the causal relationship between energy consumption and economic performance for the total economy as well as for industry, transport, and residential sectors for Tunisia during the period 1980-2007. The application of Vector error correction model (VECM) for non-stationary and cointegrated series suggests that causality directions at aggregated and disaggregated levels are mixed. However, the findings have important policy implications. While at the level of the total economy, energy plays an important role in development of Tunisian economy, it seems not to have an impact on economic performance at sectoral level. We conclude that results appear to be dependent on the level of aggregation and therefore policy advices should be given with caution.Keywords: Energy sector; Economic growth; Granger causality; Vector Error Correction Models; Tunisia.JEL Classification: C01; C32; Q43

Downloads

Download data is not yet available.

Downloads

Published

2011-12-29

How to Cite

Abid, M., & Sebri, M. (2011). Energy Consumption-Economic Growth Nexus: Does the Level of Aggregation Matter?. International Journal of Energy Economics and Policy, 2(2), 55–62. Retrieved from https://econjournals.com/index.php/ijeep/article/view/118

Issue

Vol. 2 No. 2 (2012)

Section

Articles

License

Submission of an article implies that the work described has not been published previously , that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, will not be published elsewhere in the same form, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication.