Is there really granger causality between energy use and output?

Stephan B. Bruns, Christian Gross, David I. Stern*

*Corresponding author for this work

    Research output: Contribution to specialist publicationArticlepeer-review

    56 Citations (Scopus)

    Abstract

    We carry out a meta-analysis of the very large literature on testing for Granger causality between energy use and economic output to determine if there is a genuine effect in this literature or whether the large number of apparently significant results is due to publication or misspecification bias. Our model extends the standard meta-regression model for detecting genuine effects in the presence of publication biases using the statistical power trace by controlling for the tendency to over-fit vector autoregression models in small samples. Granger causality tests in these over-fitted models have inflated type I errors. We cannot find a genuine causal effect in the literature as a whole. However, there is a robust genuine effect from output to energy use when energy prices are controlled for.

    Original languageEnglish
    Pages101-133
    Number of pages33
    Volume35
    No.4
    Specialist publicationEnergy Journal
    DOIs
    Publication statusPublished - 2014

    Fingerprint

    Dive into the research topics of 'Is there really granger causality between energy use and output?'. Together they form a unique fingerprint.

    Cite this