Energy and economic activity in the United States: Evidence from 1900 to 1945

Journal Article · Thu Jan 01 04:00:00 EST 1998 · Energy Sources

DOI:https://doi.org/10.1080/00908319808970040· OSTI ID:570126

Cheng, B S; Andrews, D R ^[1]

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1. Southern Univ., Baton Rouge, LA (United States). Dept. of Economics

Applying Hsiao`s version of the Granger causality method, this article makes the first attempt to examine causality between (1) energy and growth and (2) energy and employment, by applying the recently developed methods of cointegration and Hsiao`s version of the Granger causality to transformed US data for the period 1900--1945. Phillips-Perron tests reveal that the original series of energy data are not stationary, and therefore a first differencing is performed to induce stationarity. The study finds interestingly that there is causality unidirectionally running from energy to growth without feedback. It is also found that there are no causal links between energy and employment. The results of this study are consistent with some past studies using postwar-period data but contrary to some other past studies that covered the period after World War II.

• Sponsoring Organization: USDOE
• OSTI ID: 570126
• Journal Information: Energy Sources, Journal Name: Energy Sources Journal Issue: 1 Vol. 20; ISSN 0090-8312; ISSN EGYSAO
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
CORRELATIONS
ECONOMIC DEVELOPMENT
EMPLOYMENT
ENERGY SOURCES
GROSS NATIONAL PRODUCT
HISTORICAL ASPECTS
MATHEMATICAL MODELS
USA