Preliminary communication

THE CAUSALITY BETWEEN ENERGY CONSUMPTION AND ECONOMIC GROWTH IN UNITED KINGDOM

Yener Altunbas
Ayhan Kapusuzoglu

Abstract

This study aims to examine the relationship between the energy consumption (EC) and
economic growth (GDP) in the United Kingdom during the period between 1987 and 2007.
Augmented Dickey-Fuller (ADF) and Philips-Perron (PP) unit root tests, the Johansen Cointegration
test and standard Granger causality test were applied to examine the relationship between EC and
GDP. Since the analysis results indicated no cointegration relationship between the variables of EC
and GDP, it was found that there is no long-term relationship between the variables; however, in the
short run, there is a unidirectional causality relationship from GDP to EC.

Keywords

Energy Consumption; Economic Growth; Causality; United Kingdom

Hrčak ID:

70510

URI

https://hrcak.srce.hr/70510

Publication date:

1.6.2011.

Article data in other languages: croatian

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