Abstract
ABSTRACT This study revisits the relationship between energy and electricity consumption with economic activity for India applying threshold vector error correction model and non-linear ARDL methods to explore their regime-driven and asymmetric dynamics for the period 1971 to 2014. The presence of threshold cointegration in the underlying relationship indicates that the nonlinear dynamics are divided into ‘normal’ and ‘extreme’ regimes. A normal regime advocates the validity of growth and feedback hypothesis for economic activity with energy and electricity consumption, respectively. But an extreme regime supports the conservation hypothesis. An asymmetric cointegrating relationship further corroborates the findings. Finally, the study proposes some actionable policy prescriptions.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Macroeconomics and Finance in Emerging Market Economies
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
