Publication: Does Energy Efficiency Promote Economic Growth?: Evidence from a Multi-Country and Multi-Sector Panel Data Set
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2017-05
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2017-06-05
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This paper examines the causal relationship between energy efficiency and economic growth based on panel data for 56 high- and middle-income countries from 1978 to 2012. Using a panel vector autoregression approach, the study finds evidence of a long-run Granger causality from economic growth to lower energy intensity for all countries. The study also finds evidence of long-run bidirectional causality between lower energy intensity and higher economic growth for middle-income countries. This finding suggests that beyond climate benefits, middle-income countries may also earn an extra growth dividend from energy efficiency measures.
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“Rajbhandari, Ashish; Zhang, Fan. 2017. Does Energy Efficiency Promote Economic Growth?: Evidence from a Multi-Country and Multi-Sector Panel Data Set. Policy Research Working Paper;No. 8077. © World Bank. http://hdl.handle.net/10986/26949 License: CC BY 3.0 IGO.”
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