Energy-GDP relationship revisited: An example from GCC countries using panel causality

摘要

This work investigates the causality relationship between gross domestic product (GDP) and energy consumption in the six countries of the Gulf Cooperation Council (GCC). Recently developed panel cointegration and causality techniques are used to uncover the direction of energy-GDP causality in the GCC. Empirical results indicate a unidirectional causality running from GDP to energy consumption. Evidence shows no support for the hypothesis that energy consumption is the source of GDP growth in the GCC countries. Such results suggest that energy conservation policies may be adopted without much concern about their adverse effects on the growth of GCC economies.