Energy efficiency and natural gas consumption in the context of economic development in the European Union

Sergey Balitskiy, Yuriy Bilan, Wadim Strielkowski, Dalia Štreimikiene

Research output: Contribution to journalArticle

30 Citations (Scopus)

Abstract

Our paper evaluates the relationship between energy efficiency (which is the key issue of European climate policy), consumption of the natural gas, and economic development in the European Union. We employ the panel time series data from 1997 to 2011 that covers 26 EU Member States (represented by the countries of the Eurozone). We build and test a multivariate model originating from in the neoclassical growth model and amended to include gross fixed capital and total labour as our explanatory variables. We use the panel cointegration tests and error correction modelling for determining whether there exists a long-term causality between economic growth and natural gas consumption in the EU. Moreover, we aim to derive the existence of the two-way causality between natural gas consumption and economic growth in the EU Member States. Our results show that the relationship between economic development and the consumption of the natural gas is positive, while the relationship between the consumption of the natural gas and economic development in the EU appears to be negative. Our findings might be relevant for formulating the policy framework targeting and increasing energy intensity and efficiency.

Original languageEnglish
Pages (from-to)156-168
Number of pages13
JournalRenewable and Sustainable Energy Reviews
Volume55
DOIs
Publication statusPublished - Mar 1 2016
Externally publishedYes

Fingerprint

Energy efficiency
Natural gas
Economics
Error correction
Time series
European Union
Personnel

Keywords

  • Economic development
  • Energy efficiency
  • European Union
  • Multivariate model
  • Natural gas
  • Panel data

ASJC Scopus subject areas

  • Renewable Energy, Sustainability and the Environment

Cite this

Energy efficiency and natural gas consumption in the context of economic development in the European Union. / Balitskiy, Sergey; Bilan, Yuriy; Strielkowski, Wadim; Štreimikiene, Dalia.

In: Renewable and Sustainable Energy Reviews, Vol. 55, 01.03.2016, p. 156-168.

Research output: Contribution to journalArticle

@article{7af117a8ce9c45dba08944c53f6ca5fd,
title = "Energy efficiency and natural gas consumption in the context of economic development in the European Union",
abstract = "Our paper evaluates the relationship between energy efficiency (which is the key issue of European climate policy), consumption of the natural gas, and economic development in the European Union. We employ the panel time series data from 1997 to 2011 that covers 26 EU Member States (represented by the countries of the Eurozone). We build and test a multivariate model originating from in the neoclassical growth model and amended to include gross fixed capital and total labour as our explanatory variables. We use the panel cointegration tests and error correction modelling for determining whether there exists a long-term causality between economic growth and natural gas consumption in the EU. Moreover, we aim to derive the existence of the two-way causality between natural gas consumption and economic growth in the EU Member States. Our results show that the relationship between economic development and the consumption of the natural gas is positive, while the relationship between the consumption of the natural gas and economic development in the EU appears to be negative. Our findings might be relevant for formulating the policy framework targeting and increasing energy intensity and efficiency.",
keywords = "Economic development, Energy efficiency, European Union, Multivariate model, Natural gas, Panel data",
author = "Sergey Balitskiy and Yuriy Bilan and Wadim Strielkowski and Dalia Štreimikiene",
year = "2016",
month = "3",
day = "1",
doi = "10.1016/j.rser.2015.10.053",
language = "English",
volume = "55",
pages = "156--168",
journal = "Renewable and Sustainable Energy Reviews",
issn = "1364-0321",
publisher = "Elsevier Limited",

}

TY - JOUR

T1 - Energy efficiency and natural gas consumption in the context of economic development in the European Union

AU - Balitskiy, Sergey

AU - Bilan, Yuriy

AU - Strielkowski, Wadim

AU - Štreimikiene, Dalia

PY - 2016/3/1

Y1 - 2016/3/1

N2 - Our paper evaluates the relationship between energy efficiency (which is the key issue of European climate policy), consumption of the natural gas, and economic development in the European Union. We employ the panel time series data from 1997 to 2011 that covers 26 EU Member States (represented by the countries of the Eurozone). We build and test a multivariate model originating from in the neoclassical growth model and amended to include gross fixed capital and total labour as our explanatory variables. We use the panel cointegration tests and error correction modelling for determining whether there exists a long-term causality between economic growth and natural gas consumption in the EU. Moreover, we aim to derive the existence of the two-way causality between natural gas consumption and economic growth in the EU Member States. Our results show that the relationship between economic development and the consumption of the natural gas is positive, while the relationship between the consumption of the natural gas and economic development in the EU appears to be negative. Our findings might be relevant for formulating the policy framework targeting and increasing energy intensity and efficiency.

AB - Our paper evaluates the relationship between energy efficiency (which is the key issue of European climate policy), consumption of the natural gas, and economic development in the European Union. We employ the panel time series data from 1997 to 2011 that covers 26 EU Member States (represented by the countries of the Eurozone). We build and test a multivariate model originating from in the neoclassical growth model and amended to include gross fixed capital and total labour as our explanatory variables. We use the panel cointegration tests and error correction modelling for determining whether there exists a long-term causality between economic growth and natural gas consumption in the EU. Moreover, we aim to derive the existence of the two-way causality between natural gas consumption and economic growth in the EU Member States. Our results show that the relationship between economic development and the consumption of the natural gas is positive, while the relationship between the consumption of the natural gas and economic development in the EU appears to be negative. Our findings might be relevant for formulating the policy framework targeting and increasing energy intensity and efficiency.

KW - Economic development

KW - Energy efficiency

KW - European Union

KW - Multivariate model

KW - Natural gas

KW - Panel data

UR - http://www.scopus.com/inward/record.url?scp=84947726531&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=84947726531&partnerID=8YFLogxK

U2 - 10.1016/j.rser.2015.10.053

DO - 10.1016/j.rser.2015.10.053

M3 - Article

VL - 55

SP - 156

EP - 168

JO - Renewable and Sustainable Energy Reviews

JF - Renewable and Sustainable Energy Reviews

SN - 1364-0321

ER -