University of Stellenbosch Business School / ENGLISH ABSTRACT: This study examined the relationship between economic structure and energy intensity in selected
developed and developing countries of the world. A methodological and systematic approach was
adopted to select the thirty-one countries explored in the study. Therefore, to answer the research
questions posed in the study, the Granger Causality Technique and the Augmented Dickey-Fuller
(ADF) method were used.
This study discovered that the variables examined in the study showed variations. The variations
emerged because of differences in methodologies and analytical frameworks adopted. Errorcorrection
models were estimated and used to test for the direction of Granger causality. In the
model, a high R2 was observed among the six variables (i.e. energy efficiency, per capita income,
manufacturing, average energy prices, energy imports, technological developments), which
invariably account for 60.8 percent of the variance in the energy intensity. Based on this, the
unidirectional Granger causality runs from efficiency, per capita income and manufacturing to
energy intensity. Hence, the price effects are relatively less significant in the causal chain. The
result is at variance with the hypothesis that the structure of the economy does not determine its
energy intensity. Nevertheless, a unidirectional Granger causality running from economic structure
to energy intensity indicates that improvement in the economic structure would encourage a
decline in energy intensity.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/95609 |
| Date | 12 1900 |
| Creators | Fufore, Mohammed Umar |
| Contributors | Volschenk, J., Stellenbosch University. Faculty of Economic and Management Sciences. Graduate School of Business |
| Publisher | Stellenbosch : Stellenbosch University |
| Source Sets | South African National ETD Portal |
| Language | en_ZA |
| Detected Language | English |
| Type | Research Reports |
| Rights | Stellenbosch University |
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