Abstract
ABSTRACTOil has maintained a dominant form of energy source due to its flexibility and universal strength. This paper attempts to investigate the causal relationship between oil consumption and economic growth in Ecuador where oil consumption and real GDP have been rapidly increased in recent years. To this end, the paper employs Ecuadorian annual data covering the period 1965–2011. Tests for unit roots, co-integration, and Granger-causality based on the error-correction models are presented. The overall results reveal that there is unidirectional causality running from economic growth to oil consumption without any feedback effects. Thus, oil conservation policies can be initiated without deteriorating economic side-effects in Ecuador.
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: Energy Sources, Part B: Economics, Planning, and Policy
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.
