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The Development Dilemma: Energy Consumption, Efficiency, and Economic Progress26,59 €
Energy consumption and Economic growth nexus performs a key for economic development because it plays a vital role in economic and social development. Hence, many studies have tried to identify the direction of causality among energy consumption, economic growth, and CO2 emissions. This paper, applies the panel unit root tests, panel cointegration tests and dynamic panel causality tests to investigate the relationship between energy consumption, economic growth and CO2 emissions for selected south Asian countries viz India, China, Bangladesh, Nepal, Pakistan and Afghanistan for the period 1971- 2011. In addition, this paper applies the dynamic ordinary least square (DOLS) and the fully modified ordinary least square (FMOLS) techniques approach to estimate the long-run relationship among energy use, economic growth, gross fixed capital formation and labour force.