Time-Varying and Asymmetric Relationship between Energy Use and Macroeconomic Activity

No Thumbnail Available

Date

2019

Journal Title

Journal ISSN

Volume Title

Publisher

Sosyoekonomi Soc

Abstract

In this paper, we analyze the dynamic interactions among energy use, output, capital stock and employment for the USA. Our results suggest that these interactions are time-varying and show asymmetries in terms of the one variable's responses of big versus small and positive versus negative shocks to another variable. In particular, we find that negative energy shocks have greater impact on macroeconomic variables than positive shocks. Furthermore, small energy shocks have greater effects than big shocks. Our results also suggest that the shocks to production factors reduce energy use, implying that energy and the other factors of production are substitutes rather than compliments. These results have clear policy implications. Namely, aggressive energy saving policies might be more politically viable. In addition, the policies promoting more efficient and energy-saving capital and production technologies could help reducing energy use.

Description

Hasanov, Mubariz/0000-0003-0216-9531; Sivrikaya, Aysen/0000-0003-2199-3593

Keywords

Asymmetry, Employment, Energy Demand, Structural Change, Output Growth

Turkish CoHE Thesis Center URL

WoS Q

Scopus Q

Source

Volume

27

Issue

41

Start Page

235

End Page

252