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Growth and energy nexus in Europe revisited: Evidence from a fixed effects political economy model

descriptionPublicationkeyboard_double_arrow_right Article , Journal 01 Oct 2013Publisher:Elsevier BVJournal:Energy Policy, volume 61, pages 881-887 (issn: 0301-4215,

Authors: Angeliki N. Menegaki; Ilhan Ozturk;

doi: 10.1016/j.enpol.2013.06.076

Growth and energy nexus in Europe revisited: Evidence from a fixed effects political economy model

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Abstract

This is an empirical study on the causal relationship between economic growth and energy for 26 European countries in a multivariate panel framework over the period 1975–2009 using a two-way fixed effects model and including greenhouse gas emissions, capital, fossil energy consumption, Herfindahl index (political competition) and number of years the government chief executive stays in office (political stability) as independent variables in the model. Empirical results confirm bidirectional causality between growth and political stability, capital and political stability, capital and fossil energy consumption. Whether political stability favors the implementation of growth or leads to corruption demands further research.

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Çağ University
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Çağ University
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