On the Relationship between Disaggregated Energy Production and GDP in Italy

ENERGY & ENVIRONMENT, Vol. 23, No. 8, 2012

19 Pages Posted: 2 Oct 2013

See all articles by Cosimo Magazzino

Cosimo Magazzino

University of Rome III; Royal Economic Society; Italian Economic Association

Date Written: 2012

Abstract

This paper tries to assess the relationship between disaggregate energy production and real aggregate income in Italy by undertaking cointegration analyses using annual data from 1883 to 2009. After a brief introduction, a survey of the economic literature on this issue is shown, before discussing the data and introducing some econometric techniques. Stationarity tests reveal that the series are non-stationary, or I(1). Cointegration analyses reveal that there is a long-run relationship between GDP and geothermoelectric production in the 1919-1939 period. Whilst, for the post-war years, we find a cointegration relationship for all sources of energy. Causality tests roughly confirm a bi-directional flow in the long-run, so that energy production and economic growth complement each other, since economic growth may demand more energy, whereas more energy consumption may also induce economic growth.

Keywords: Energy policies, energy sources, GDP, stationarity, cointegration, causality, Italy

JEL Classification: B22, C22, N54, Q43

Suggested Citation

Magazzino, Cosimo, On the Relationship between Disaggregated Energy Production and GDP in Italy (2012). ENERGY & ENVIRONMENT, Vol. 23, No. 8, 2012, Available at SSRN: https://ssrn.com/abstract=2333393

Cosimo Magazzino (Contact Author)

University of Rome III ( email )

Via Ostiense 139
Rome, RM 00154
Italy

HOME PAGE: http://scienzepolitiche.uniroma3.it/cmagazzino/

Royal Economic Society ( email )

London
United Kingdom

Italian Economic Association ( email )

Piazzale Martelli, 8
Ancona, AN 60121
Italy

HOME PAGE: http://www.siecon.org/online/en/

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