Energy consumption, economic development and prices:udTime series evidence in CESEE countries

摘要

This paper estimates the causal relationships between energy consumption and income for Albania, Bosniaudand Herzegovina, Serbia, and Macedonia (CESEE - Central, Eastern and Southeastern Europe countries), usingudcointegration and error-correction modelling techniques. The results indicate that energy consumption, incomeudand prices are second order cointegrated, except for Albania where there exist only one cointegrationudrelationship. In the error correction mechanism on the long run the results show that for the selected countries inudthe cointegration relationship only inflation does seems to enter significantly in the equation. On a short run alsoudonly inflation seems to affect energy consumption, while energy consumption seems to affect income on shortudrun, but only in Albania. This study supports the view that energy and income are neutral. This means that inudthese countries there is scope for energy conservation measures without severe impact on their economicudgrowth.