Natural gas consumption and economic growth nexus: an investigation for France
Article
Article Title | Natural gas consumption and economic growth nexus: an investigation for France |
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ERA Journal ID | 123467 |
Article Category | Article |
Authors | Farhani, Sahbi (Author) and Rahman, Mohammad Mafizur (Author) |
Journal Title | International Journal of Energy Sector Management |
Journal Citation | 14 (2), pp. 261-284 |
Number of Pages | 24 |
Year | 2019 |
Place of Publication | United Kingdom |
ISSN | 1750-6220 |
1750-6239 | |
Digital Object Identifier (DOI) | https://doi.org/10.1108/IJESM-07-2019-0005 |
Web Address (URL) | https://www.emerald.com/insight/content/doi/10.1108/IJESM-07-2019-0005/full/html |
Abstract | Purpose – The purpose of this study is to investigate the relationship between natural gas consumption and economic growth of France. Design/methodology/approach – To analyze the relationship an extended Cobb-Douglas production function is used. The ARDL bounds testing approach is applied to test the existence of the long run relationship between the series. The VECM Granger causality approach is implemented to detect the direction of causal relation between the variables. Findings – The results show that variables are cointegrated for the long run relationship. They also indicate that natural gas consumption, exports, capital and labor are the contributing factors to economic growth in France. The causality analysis indicates that feedback hypothesis is validated between gas consumption and economic growth. The bidirectional causality is also found between exports and economic growth, gas consumption and exports, and capital and gas consumption. Research limitations/implications – The feedback hypothesis between gas consumption and economic growth implies that adoption of energy conservation policies should be discouraged; rather gas consumption and economic growth policies should be implemented jointly. Originality/value – This study is an original work for France, showing the results of the relationship between natural gas consumption and economic growth. In line with the results of this study, new direction for policy makers is opened up to formulate a comprehensive energy policy to sustain long term economic growth in France. |
Keywords | natural gas consumption; economic growth; exports; France; ARDL bounds testing approach |
ANZSRC Field of Research 2020 | 380105. Environment and resource economics |
440499. Development studies not elsewhere classified | |
380205. Time-series analysis | |
Public Notes | Files associated with this item cannot be displayed due to copyright restrictions. |
Byline Affiliations | University of Carthage, Tunisia |
School of Commerce | |
Institution of Origin | University of Southern Queensland |
https://research.usq.edu.au/item/q5v48/natural-gas-consumption-and-economic-growth-nexus-an-investigation-for-france
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