TY - JOUR
T1 - Modeling the non-linear relationship between financial development and energy consumption
T2 - statistical experience from OECD countries
AU - Baloch, Muhammad Awais
AU - Danish,
AU - Meng, Fanchen
N1 - Publisher Copyright:
© 2019, Springer-Verlag GmbH Germany, part of Springer Nature.
PY - 2019/3/1
Y1 - 2019/3/1
N2 - The linkage between financial development and energy consumption is widely investigated in the literature. However, the non-linear relationship between financial development and energy demand is still under debate. Therefore, this study aims to examine the non-linear relationship between financial development, economic growth, and energy consumption in OECD countries. The study uses the Driscoll–Kraay standard errors panel regression model for spanning from 1980 to 2016. The empirical findings indicate that an inverted U-shape relationship exists between financial development and energy consumption as well as between economic growth and energy consumption. Moreover, the feedback hypothesis is found between financial development and energy use. Additionally, income and energy use granger cause each other. The innovative findings contribute to extant literature, which is of special interest to the country’s policymakers regarding energy efficiency.
AB - The linkage between financial development and energy consumption is widely investigated in the literature. However, the non-linear relationship between financial development and energy demand is still under debate. Therefore, this study aims to examine the non-linear relationship between financial development, economic growth, and energy consumption in OECD countries. The study uses the Driscoll–Kraay standard errors panel regression model for spanning from 1980 to 2016. The empirical findings indicate that an inverted U-shape relationship exists between financial development and energy consumption as well as between economic growth and energy consumption. Moreover, the feedback hypothesis is found between financial development and energy use. Additionally, income and energy use granger cause each other. The innovative findings contribute to extant literature, which is of special interest to the country’s policymakers regarding energy efficiency.
KW - Energy consumption
KW - Financial development
KW - Non-linear relationship
KW - OECD countries
UR - http://www.scopus.com/inward/record.url?scp=85061186798&partnerID=8YFLogxK
U2 - 10.1007/s11356-019-04317-9
DO - 10.1007/s11356-019-04317-9
M3 - Article
C2 - 30715718
AN - SCOPUS:85061186798
SN - 0944-1344
VL - 26
SP - 8838
EP - 8846
JO - Environmental Science and Pollution Research
JF - Environmental Science and Pollution Research
IS - 9
ER -
