Keywords: energy consumption, gross domestic product, GDP, economic activity, G20, Granger causality test, electricity consumption, oil consumption
Energy consumption and economic activity: an empirical study for G20
This paper uses the panel data of energy consumption, electricity, oil and economic activity for 20 countries from 1990 to 2010. The empirical results of this study are as follows: there is a long relationship between energy consumption and economic activity. The panel causality test results reveal that there is long–run Granger causality running from electricity and oil to economic activity and there is unidirectional causality between electricity, oil and economic activity. Our findings have important policy implications, especially, because these countries are the first consumers of electricity in the world.