Electricity consumption, economic growth, urbanisation and trade nexus: empirical evidence from Iceland
This study empirically investigates the relationship between economic growth, electricity consumption, trade and urbanisation in Iceland, covering the period 1965–2013. The A.R.D.L. bounds testing approach to co-integration is applied to investigate the existence of the long-run relationship. The ca...
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Language: | English |
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Juraj Dobrila University of Pula, Faculty of economics and tourism Dr. Mijo Mirković
2018
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Online Access: | https://hrcak.srce.hr/206069 https://hrcak.srce.hr/file/302967 |
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fthrcak:oai:hrcak.srce.hr:206069 2023-05-15T16:46:03+02:00 Electricity consumption, economic growth, urbanisation and trade nexus: empirical evidence from Iceland Faisal, Faisal Tursoy, Turgut Gunsel Resatoglu, Nil Berk, Niyazi 2018-01-15 application/pdf https://hrcak.srce.hr/206069 https://hrcak.srce.hr/file/302967 eng eng Juraj Dobrila University of Pula, Faculty of economics and tourism Dr. Mijo Mirković info:eu-repo/semantics/altIdentifier/doi/https://doi.org/10.1080/1331677X.2018.1438907 https://hrcak.srce.hr/206069 info:eu-repo/semantics/openAccess Economic research - Ekonomska istraživanja ISSN 1331-677X (Print) ISSN 1848-9664 (Online) Volume 31. Issue 1 Electricity consumption; urbanisation; A.R.D.L.; trade text info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion 2018 fthrcak https://doi.org/10.1080/1331677X.2018.1438907 2018-09-26T23:00:13Z This study empirically investigates the relationship between economic growth, electricity consumption, trade and urbanisation in Iceland, covering the period 1965–2013. The A.R.D.L. bounds testing approach to co-integration is applied to investigate the existence of the long-run relationship. The causality was investigated among the variables using Granger causality under the V.E.C.M. framework. The A.R.D.L. bounds testing approach to co-integration confirms a long-run relationship between electricity consumption and its regressors. The empirical estimation indicates the existence of a positive and statistically significant impact of economic growth, trade and urbanisation on electricity consumption for Iceland, not only in the long-run, but also in the short-run. Furthermore, electricity consumption converges to its long-run position by 45.63% speed of adjustment using the channels of urbanisation, trade and economic growth. The results of Granger causality imply the presence of a feedback causal relationship between urbanisation and electricity consumption in the long-run, thus validating the feedback hypothesis. However, economic growth is causing trade, thus validating the growth-led trade hypothesis in the short-run. Additionally, no causal relationship was found between electricity usage and economic growth, which confirms the neutrality hypothesis. Implementing the energy conservation policy will have no damaging effect on economic growth for Iceland. Article in Journal/Newspaper Iceland Hrčak - Portal of scientific journals of Croatia Economic Research-Ekonomska Istraživanja 31 1 664 680 |
institution |
Open Polar |
collection |
Hrčak - Portal of scientific journals of Croatia |
op_collection_id |
fthrcak |
language |
English |
topic |
Electricity consumption; urbanisation; A.R.D.L.; trade |
spellingShingle |
Electricity consumption; urbanisation; A.R.D.L.; trade Faisal, Faisal Tursoy, Turgut Gunsel Resatoglu, Nil Berk, Niyazi Electricity consumption, economic growth, urbanisation and trade nexus: empirical evidence from Iceland |
topic_facet |
Electricity consumption; urbanisation; A.R.D.L.; trade |
description |
This study empirically investigates the relationship between economic growth, electricity consumption, trade and urbanisation in Iceland, covering the period 1965–2013. The A.R.D.L. bounds testing approach to co-integration is applied to investigate the existence of the long-run relationship. The causality was investigated among the variables using Granger causality under the V.E.C.M. framework. The A.R.D.L. bounds testing approach to co-integration confirms a long-run relationship between electricity consumption and its regressors. The empirical estimation indicates the existence of a positive and statistically significant impact of economic growth, trade and urbanisation on electricity consumption for Iceland, not only in the long-run, but also in the short-run. Furthermore, electricity consumption converges to its long-run position by 45.63% speed of adjustment using the channels of urbanisation, trade and economic growth. The results of Granger causality imply the presence of a feedback causal relationship between urbanisation and electricity consumption in the long-run, thus validating the feedback hypothesis. However, economic growth is causing trade, thus validating the growth-led trade hypothesis in the short-run. Additionally, no causal relationship was found between electricity usage and economic growth, which confirms the neutrality hypothesis. Implementing the energy conservation policy will have no damaging effect on economic growth for Iceland. |
format |
Article in Journal/Newspaper |
author |
Faisal, Faisal Tursoy, Turgut Gunsel Resatoglu, Nil Berk, Niyazi |
author_facet |
Faisal, Faisal Tursoy, Turgut Gunsel Resatoglu, Nil Berk, Niyazi |
author_sort |
Faisal, Faisal |
title |
Electricity consumption, economic growth, urbanisation and trade nexus: empirical evidence from Iceland |
title_short |
Electricity consumption, economic growth, urbanisation and trade nexus: empirical evidence from Iceland |
title_full |
Electricity consumption, economic growth, urbanisation and trade nexus: empirical evidence from Iceland |
title_fullStr |
Electricity consumption, economic growth, urbanisation and trade nexus: empirical evidence from Iceland |
title_full_unstemmed |
Electricity consumption, economic growth, urbanisation and trade nexus: empirical evidence from Iceland |
title_sort |
electricity consumption, economic growth, urbanisation and trade nexus: empirical evidence from iceland |
publisher |
Juraj Dobrila University of Pula, Faculty of economics and tourism Dr. Mijo Mirković |
publishDate |
2018 |
url |
https://hrcak.srce.hr/206069 https://hrcak.srce.hr/file/302967 |
genre |
Iceland |
genre_facet |
Iceland |
op_source |
Economic research - Ekonomska istraživanja ISSN 1331-677X (Print) ISSN 1848-9664 (Online) Volume 31. Issue 1 |
op_relation |
info:eu-repo/semantics/altIdentifier/doi/https://doi.org/10.1080/1331677X.2018.1438907 https://hrcak.srce.hr/206069 |
op_rights |
info:eu-repo/semantics/openAccess |
op_doi |
https://doi.org/10.1080/1331677X.2018.1438907 |
container_title |
Economic Research-Ekonomska Istraživanja |
container_volume |
31 |
container_issue |
1 |
container_start_page |
664 |
op_container_end_page |
680 |
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1766036175331524608 |