The Relationship between Energy Consumption and GDP: Evidence from a Panel of 10 Latin American Countries

24 Pages Posted: 21 Jan 2015

See all articles by Jacobo Alberto Campo Robledo

Jacobo Alberto Campo Robledo

Universidad Catolica de Colombia; Superintendencia de Industria y Comercio

Viviana Sarmiento Guzmán

Universidad Católica de Colombia

Date Written: November 1, 2013

Abstract

We estimate the elasticity of the long-run relationship between energy consumption and GDP for 10 countries in Latin America from 1971 to 2007. We employ Pedroni’s (1999, 2004) panel cointegration test to determine if such a long-run relationship exists. Westerlund’s (2006) cointegration test for panel data is used to estimate the slopes of the long-run relationship variables. These findings provide empirical guidance for policies to promote energy conservation and efficiency. Cointegration between the two variables is found to exist in both directions. This paper discusses the energy dependence of some countries and describes potential implementation of energy conservation policies in others.

Keywords: energy consumption, panel stationarity, panel cointegration, Latin America

JEL Classification: C32, O40, Q43

Suggested Citation

Campo Robledo, Jacobo Alberto and Sarmiento Guzmán, Viviana, The Relationship between Energy Consumption and GDP: Evidence from a Panel of 10 Latin American Countries (November 1, 2013). Latin American Journal of Economics (formerly Cuadernos de Economia), Vol. 50, No. 2, p. 233, 2013, Available at SSRN: https://ssrn.com/abstract=2550747

Jacobo Alberto Campo Robledo (Contact Author)

Universidad Catolica de Colombia ( email )

Cra 13 # 47 - 49
Piso 3 - Bloque C
Bogota, 57
Colombia
(57) + (1) 3277300 ext. 5155 (Phone)

HOME PAGE: http://portalweb.ucatolica.edu.co/easyWeb2/economia/index.php

Superintendencia de Industria y Comercio ( email )

Cra 13 # 27 - 00
Piso 10
Bogotá
Colombia

HOME PAGE: http://www.sic.gov.co/drupal/estudios-economicos

Viviana Sarmiento Guzmán

Universidad Católica de Colombia ( email )

Colombia

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
44
Abstract Views
563
PlumX Metrics