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The role of energy in economic growth

Stern, David

Description

This paper reviews the mainstream, resource economics, and ecological economics models of growth. A possible synthesis of energy-based and mainstream models is presented. This shows that when energy is scarce it imposes a strong constraint on the growth of the economy; however, when energy is abundant, its effect on economic growth is much reduced. The industrial revolution released the constraints on economic growth by the development of new methods of using coal and the discovery of new...[Show more]

dc.contributor.authorStern, David
dc.date.accessioned2015-12-10T23:22:54Z
dc.identifier.issn0077-8923
dc.identifier.urihttp://hdl.handle.net/1885/66715
dc.description.abstractThis paper reviews the mainstream, resource economics, and ecological economics models of growth. A possible synthesis of energy-based and mainstream models is presented. This shows that when energy is scarce it imposes a strong constraint on the growth of the economy; however, when energy is abundant, its effect on economic growth is much reduced. The industrial revolution released the constraints on economic growth by the development of new methods of using coal and the discovery of new fossil fuel resources. Time-series analysis shows that energy and GDP cointegrate, and energy use Granger causes GDP when capital and other production inputs are included in the vector autoregression model. However, various mechanisms can weaken the links between energy and growth. Energy used per unit of economic output has declined in developed and some developing countries, owing to both technological change and a shift from poorer quality fuels, such as coal, to the use of higher quality fuels, especially electricity. Substitution of other inputs for energy and sectoral shifts in economic activity play smaller roles.
dc.publisherNew York Academy of Sciences
dc.rightsCopyright Information: © 2016 selection and editorial matters, Lakshman Guruswamy; individual chapters, the contributors
dc.sourceAnnals of the New York Academy of Sciences
dc.subjectKeywords: coal; fossil fuel; natural gas; article; capital; coal power; commercial phenomena; cost control; developed country; developing country; economic aspect; economic development; economics; electric power plant; electricity; environmental economics; financia Economic growth; Energy; Industrial revolution; Substitution; Technological change
dc.titleThe role of energy in economic growth
dc.typeJournal article
local.description.notesImported from ARIES
local.identifier.citationvolume1219
dc.date.issued2011
local.identifier.absfor140205 - Environment and Resource Economics
local.identifier.ariespublicationf2965xPUB1331
local.type.statusPublished Version
local.contributor.affiliationStern, David, College of Asia and the Pacific, ANU
local.description.embargo2037-12-31
local.bibliographicCitation.issue1
local.bibliographicCitation.startpage26
local.bibliographicCitation.lastpage51
local.identifier.doi10.1111/j.1749-6632.2010.05921.x
local.identifier.absseo910103 - Economic Growth
local.identifier.absseo859999 - Energy not elsewhere classified
dc.date.updated2016-02-24T08:12:39Z
local.identifier.scopusID2-s2.0-79951595195
local.identifier.thomsonID000288933600002
CollectionsANU Research Publications

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