Energy Consumption, Energy Prices and Economic Growth: Causal Relationships Based on Error Correction Model

Augustine C. Osigwe; Damilola Felix Arawomo

Energy Consumption, Energy Prices and Economic Growth: Causal Relationships Based on Error Correction Model

Year 2015, Volume: 5 Issue: 2, 408 - 412, 01.06.2015

Augustine C. Osigwe Damilola Felix Arawomo

Abstract

This study examined the Granger causality of energy consumption, oil price and economic growth in Nigeria. Two sub-categories of energy (kerosene and electricity) were equally considered. The error correction model framework was used to test the granger causality of the variables. The results for the total energy showed bidirectional causality between energy consumption and economic growth. As regards electricity, bidirectional causality was found between electricity consumption and economic growth as well as between electricity consumption and electricity price. No causal relationship exists among kerosene consumption, kerosene price and economic growth. Based on our findings, we recommend that policies that promote energy consumption and economic growth be introduced. One way of achieving this is through the adoption of appropriate energy pricing framework that takes cognisance of both the present and the future generation.

Keywords

Energy consumption, Economic Growth, Kerosene Consumption, Electricity Consumption

Year 2015, Volume: 5 Issue: 2, 408 - 412, 01.06.2015

Augustine C. Osigwe Damilola Felix Arawomo

Abstract

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Details

Other ID	JA96ZB62BC
Journal Section	Research Article
Authors	Augustine C. Osigwe This is me Damilola Felix Arawomo This is me
Publication Date	June 1, 2015
Published in Issue	Year 2015 Volume: 5 Issue: 2

Cite

APA	Osigwe, A. C., & Arawomo, D. F. (2015). Energy Consumption, Energy Prices and Economic Growth: Causal Relationships Based on Error Correction Model. International Journal of Energy Economics and Policy, 5(2), 408-412.
AMA	Osigwe AC, Arawomo DF. Energy Consumption, Energy Prices and Economic Growth: Causal Relationships Based on Error Correction Model. IJEEP. June 2015;5(2):408-412.
Chicago	Osigwe, Augustine C., and Damilola Felix Arawomo. “Energy Consumption, Energy Prices and Economic Growth: Causal Relationships Based on Error Correction Model”. International Journal of Energy Economics and Policy 5, no. 2 (June 2015): 408-12.
EndNote	Osigwe AC, Arawomo DF (June 1, 2015) Energy Consumption, Energy Prices and Economic Growth: Causal Relationships Based on Error Correction Model. International Journal of Energy Economics and Policy 5 2 408–412.
IEEE	A. C. Osigwe and D. F. Arawomo, “Energy Consumption, Energy Prices and Economic Growth: Causal Relationships Based on Error Correction Model”, IJEEP, vol. 5, no. 2, pp. 408–412, 2015.
ISNAD	Osigwe, Augustine C. - Arawomo, Damilola Felix. “Energy Consumption, Energy Prices and Economic Growth: Causal Relationships Based on Error Correction Model”. International Journal of Energy Economics and Policy 5/2 (June 2015), 408-412.
JAMA	Osigwe AC, Arawomo DF. Energy Consumption, Energy Prices and Economic Growth: Causal Relationships Based on Error Correction Model. IJEEP. 2015;5:408–412.
MLA	Osigwe, Augustine C. and Damilola Felix Arawomo. “Energy Consumption, Energy Prices and Economic Growth: Causal Relationships Based on Error Correction Model”. International Journal of Energy Economics and Policy, vol. 5, no. 2, 2015, pp. 408-12.
Vancouver	Osigwe AC, Arawomo DF. Energy Consumption, Energy Prices and Economic Growth: Causal Relationships Based on Error Correction Model. IJEEP. 2015;5(2):408-12.