| ID | 093470 |
| Title Proper | Bounds test approach to cointegration and causality between nuclear energy consumption and economic growth in India |
| Language | ENG |
| Author | Wolde-Rufael, Yemane |
| Publication | 2010. |
| Summary / Abstract (Note) | This paper attempts to examine the dynamic relationship between economic growth, nuclear energy consumption, labor and capital for India for the period 1969-2006. Applying the bounds test approach to cointegration developed by Pesaran et al. (2001)we find that there was a short- and a long-run relationship between nuclear energy consumption and economic growth. Using four long-run estimators we also found that nuclear energy consumption has a positive and a statistically significant impact on India's economic growth. Further, applying the Toda and Yamamoto (1995)approach to Granger causality and the variance decomposition approach developed by Pesaran and Shin (1998) we found a positive and a significant uni-directional causality running from nuclear energy consumption to economic growth without feedback. This implies that economic growth in India is dependent on nuclear energy consumption where a decrease in nuclear energy consumption may lead to a decrease in real income. For a fast growing energy-dependent economy this may have far-reaching implications for economic growth. India's economic growth can be frustrated if energy conservation measures are undertaken without due regard to the negative impact they have on economic growth. |
| `In' analytical Note | Energy Policy Vol. 38, No. 1; Jan 2010: p. 52-58 |
| Journal Source | Energy Policy Vol. 38, No. 1; Jan 2010: p. 52-58 |
| Key Words | Nuclear Energy Consumption ; Bounds Test ; Causality |