Energy-output linkages in Australia: Implications for emissions reduction policies

Shahiduzzaman, Muhammad & Alam, Khorshed (2011) Energy-output linkages in Australia: Implications for emissions reduction policies. Journal of Applied Business and Economics, 12(3), pp. 48-60.

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The study investigates the long-run and dynamic relationships between energy consumption and output in Australia using a multivariate cointegration and causality framework. Using both Engle-Granger and Johansen cointegration approaches, the study finds that energy consumption and real Gross Domestic Product are cointegrated. The Granger causality tests suggest bidirectional Granger causality between energy consumption and real GDP, and Granger endogeineity in the system. Since the energy sector largely contributes to carbon emissions in Australia, we suggest that direct measures to reduce carbon by putting constraints on the energy consumption would pose significant economic costs for the Australian economy.

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ID Code: 93120
Item Type: Journal Article
Refereed: Yes
Keywords: Energy-output Linkages, Australia, Emissions Reduction Policies
ISSN: 1499-691X
Subjects: Australian and New Zealand Standard Research Classification > ECONOMICS (140000) > APPLIED ECONOMICS (140200)
Australian and New Zealand Standard Research Classification > STUDIES IN HUMAN SOCIETY (160000) > POLICY AND ADMINISTRATION (160500)
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Current > Schools > School of Management
Deposited On: 22 Feb 2016 04:53
Last Modified: 03 Mar 2016 05:50

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