Abstract
Seeing that reshaped energy economics literature has adopted some new variables in energy demand function, the number of papers looking into the relationship between financial development and energy consumption at the aggregate level has been increasing over the last few years. This paper, however, proposes a new framework using disaggregated data and investigates the nexus between financial development and sectoral energy consumption in Turkey. To this end, panel time series regression and causality techniques are adopted over the period 1989–2011. Empirical results confirm that financial development does have a significant impact on energy consumption, even with disaggregated data. It is also proved that the magnitude of financial development is larger in energy-intensive industries than in less energy-intensive ones.
Highlights
Subsequent to the oil crisis in the 1970s, energy economics has become one of the most popular research areas, which is broadly expanded in the context of the energy-growth nexus
Departing from the hypotheses above, the goal of this paper is to investigate the impacts of financial development on sectoral energy consumption in Turkey
Note that neither Dubai nor Brent prices have a significant impact on energy consumption
Summary
Subsequent to the oil crisis in the 1970s, energy economics has become one of the most popular research areas, which is broadly expanded in the context of the energy-growth nexus. In a similar manner to aggregated analyses, one should anticipate financial development to have a significant impact at the disaggregated level. Given these assumptions, the primary hypothesis suggested is “the impact of financial development may affect energy consumption even at the disaggregate level”. The primary hypothesis suggested is “the impact of financial development may affect energy consumption even at the disaggregate level” As these impacts are expected to differ across the energy intensity of related industries, the second hypothesis is “financial development affects energy-intensive industries more than less energy-intensive industries”
Sign-in/Register to view highlights & summary 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 callDisclaimer: 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.
