Effects of financial development, economic growth and trade on electricity consumption: Evidence from post-Fukushima Japan
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Dosyalar
Tarih
2016
Dergi Başlığı
Dergi ISSN
Cilt Başlığı
Yayıncı
PERGAMON-ELSEVIER SCIENCE LTD
Erişim Hakkı
info:eu-repo/semantics/closeAccess
Özet
This study examines the long-run and short-run effects of financial development, economic growth, export, imports and capital on the Japanese energy predicaments as a result of the foregoing energy crisis in the country. To ensure a robust outcome, the study applied the extended Cobb-Douglas production function and used time series data from 1970 to 2012. Following to this, structural break unit root test, ARDL bounds test approach to cointegration and the Johansen cointegration test were applied. In addition, the VECM Granger causality framework was used in determining the causal relationship between the variables. The findings of the study establish that, in the long-run a 1% rise in financial development, economic growth, exports and imports in Japan will exert a significant pressure on the Japanese electricity consumption by 0.2429%; 0.5040%; 0.0921% and 0.2193% respectively. However, capital was found to decline energy consumption in all material respect. In the short-run, the study discovered how a 1% rise in the dynamics of financial development, economic growth, exports and imports to add to the Japanese electricity predicaments by 0.2210%; 0.5840%; 0.0521% and 0.2031% respectively. The existence of the feedback relationship between most of the variables was discovered, while, economic growth, exports, imports, and trade openness were found to Granger-cause electricity consumption. The study advocates the adoption of massive but competitive renewable energy system in Japan. How it should be done and why it should be done are carefully set by this study.
Açıklama
WOS: 000367758200080
Anahtar Kelimeler
Financial Development, Growth, Energy Consumption, Cobb-Douglas
Kaynak
Renewable & Sustaınable Energy Revıews
WoS Q Değeri
Q1
Scopus Q Değeri
Q1
Cilt
54
