Journal article
Human capital and export diversification as new determinants of energy demand in the United States
Energy economics, v 78, pp 335-349
Feb 2019
Featured in Collection : UN Sustainable Development Goals @ Drexel
Abstract
This paper investigates how education and export diversification contribute to energy demand by also incorporating the role of natural resource, oil prices and income in driving energy demand function for the United States (U.S.) economy. In doing so, we apply the unit root test of Kim and Perron (2009) and the bootstrapping autoregressive-distributed lag (ARDL) cointegration approach developed by McNown etal. (2018), which accommodates the presence of a single unknown structural break in the series. The empirical results confirm that the variables are cointegrated in a long-run relationship. Education is negatively linked to energy demand, and export diversification also decreases this demand in the long-run. On the other hand, economic growth increases energy consumption, while oil prices reduce energy demand in the long-run. Natural resource production affects energy consumption positively. Further, the Vector Error Correction Mechanism (VECM)'s Granger causality analysis reveals a feedback effect between education and energy demand. Export diversification causes energy demand, and in return, energy demand causes export diversification. A bidirectional causality also exists between economic growth and energy demand. The paper also discusses the potential implications of the results.
•Both education and export diversification are considered as new determinants of energy demand in the U.S.•The bootstrapping autoregressive-distributed lag (ARDL) cointegration approach is applied•Education and export diversification reduce energy demand while economic growth affects it positively•Natural resources positively contribute to energy consumption•There is a feedback effect between export diversification and energy demand
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Details
- Title
- Human capital and export diversification as new determinants of energy demand in the United States
- Creators
- Muhammad Shahbaz - Montpellier Business SchoolGiray Gozgor - Istanbul Medeniyet UniversityShawkat Hammoudeh - Drexel University
- Publication Details
- Energy economics, v 78, pp 335-349
- Publisher
- Elsevier
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Economics (School of Economics)
- Web of Science ID
- WOS:000462105100025
- Scopus ID
- 2-s2.0-85057753761
- Other Identifier
- 991019167717404721
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- Collaboration types
- Domestic collaboration
- International collaboration
- Web of Science research areas
- Economics