Abolghasem Golkhandan; Mohammad Alizadeh
Abstract
This study investigates the causal linkages between consumption of energy carriers and value added in the Iranian economic sectors for the period 1974-2013 by using the granger causality test in heterogeneous mixed panels. For this, the panel causality testing approach, the method developed by Emirmahmutoglu ...
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This study investigates the causal linkages between consumption of energy carriers and value added in the Iranian economic sectors for the period 1974-2013 by using the granger causality test in heterogeneous mixed panels. For this, the panel causality testing approach, the method developed by Emirmahmutoglu and Kose (2011) based on the vector autoregressive (VAR) model and Wald tests with the country specific bootstrap critical values, is applied. This test, accounts cross dependency and heterogeneity among the members of the panel and also, co-integration between variables. Based on the results, the existence of a unidirectional causality relation of oil and gas to value added and the existence of a bidirectional causality relation between electricity and value added in the service sector and the entire sectors is confirmed. In agriculture sector, there is only a causal relation of electricity on value added. In industry sector, the existence of a bidirectional causality relation between gas and electricity with value added and the existence of a unidirectional causality relation of value added to oil is confirmed. In transportation sector, there is a causal relation of gas and electricity to value added and there is a bidirectional causality relation between the oil and the value added. The results can provide important policy recommendations in planning and explaining energy sector policies at the level sector in country.
Seyed Kamal Sadeghi; Seyed Mehdi Mousavian
Volume 3, Issue 12 , October 2014, , Pages 91-116
Abstract
It is clear that any planning and policy making about economic growth as one of the macroeconomic purpose’s, need to special consideration to the environment and its relationship with production. therefore, in this study, we employ a maximum entropy Bootstrap to assessment the causality between ...
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It is clear that any planning and policy making about economic growth as one of the macroeconomic purpose’s, need to special consideration to the environment and its relationship with production. therefore, in this study, we employ a maximum entropy Bootstrap to assessment the causality between carbon emissions and economic growth more accurate in comparison to conventional hypothesis tests based on asymptotic theory. We employ simulation based inference to investigate the causal relationship between carbon emissions and economic growth in Iran for the 1973–2010 period, both in a bivariate and a multivariate framework by including energy consumption per capita, financial development and openness variables in the model. In bivariate model, Our results indicate that there is uni-directional causality from GDP per capita to carbon emissions per capita while multivariate framework shows no evidence of a causal relation between carbon emissions and growth. Results indicate that there is uni-directional causality from GDP per capita to energy consumption per capita. So we can employ environmental policies without any reduction of economic growth.
