Examining asymmetric behavior between energy consumption and economic growth in Taiwan

Jin-Li Hu*, C. H. Lin

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

6 Scopus citations

Abstract

Energy consumption growth has recently been higher than economic growth in Taiwan, worsening energy efficiency. This article utilizes the momentum-threshold autoregressive cointegration method to examine the long-run equilibrium relationship between economic growth and energy consumption growth, particularly focusing on the most energy-consuming sectors in Taiwan. Allowing for a thresh- old effect sheds new light on the explanation of the non-linear characteristics of the energy-growth link. The results indicate that economic growth is non-linearly cointegrated with energy consumption when the asymmetric adjusting behavior is confirmed. Specifically, we find that the deviations adjust persistently toward equilibrium in a relative energy efficiency regime for the aggregate-level, while for the sector level in a relative energy inefficiency regime. The government authority should conduct effective energy demand-side management to improve energy efficiency.

Original languageEnglish
Pages (from-to)76-85
Number of pages10
JournalEnergy Sources, Part B: Economics, Planning and Policy
Volume8
Issue number1
DOIs
StatePublished - 1 Jan 2013

Keywords

  • Asymmetric adjustments
  • Energy efficiency
  • Momentum-threshold autoregressive (M-TAR)
  • Non-linearity
  • Threshold cointegration

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