A Cointegration and Causality Analysis for Assessing Sustainability and Security in Indian Energy Sector

Vivek Soni; Surya Prakash Singh; Devinder Kumar Banwet

A Cointegration and Causality Analysis for Assessing Sustainability and Security in Indian Energy Sector

Vivek Soni * §

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Surya Prakash Singh

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Devinder Kumar Banwet

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§ Indian Institute of Technology

A Cointegration and Causality Analysis for Assessing Sustainability and Security in Indian Energy Sector

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Abstract

The purpose of the paper is to establish the long run relationship between gross domestic product (GDP) and energy consumption in India. This is known that energy plays a vital role for all the economies and the relationship relates to levels and changes in economic development approximated by GDP. Literatures also reveal that the greater is region’s GDP, the greater is the energy consumption. The data of three decades (1981-2011) has been taken for analysis and results are analyzed in the software package Stata/SE10.0. The time series analysis is used to develop conceptual framework, which includes testing of stationary using unit root test, Granger causality, cointegration and error correction mechanism (ECM). On applying cointegration, it is found that two variables are co-integrated of order one (I~ (1)).

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Vivek Soni, Surya Prakash Singh, Devinder Kumar Banwet. 1970. "A Cointegration and Causality Analysis for Assessing Sustainability and Security in Indian Energy Sector". Global Journal of Management and Business Research - B: Economic & Commerce GJMBR-B Volume 13 (GJMBR Volume 13 Issue B4).

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GJMBR Volume 13 Issue B4

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

Keywords

cointegration energy consumption error correction mechanism (ECM)granger causality gross domestic product (GDP)stat stationary unit root test

Classification

GJMBR-B Classification JEL Code: O13

P28

Submission ReceivedDecember 11, 2012
Peer Review Double Blind
Handling Editor
Accepted January 5, 2013
Published January 15, 2013

Version of record

v1.2

Language

English

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Article Matrices

Total Score: 150

Country: India

Subject: Global Journal of Management and Business Research

Authors: Vivek Soni, Surya Prakash Singh, Devinder Kumar Banwet (PhD/Dr. count: 0)

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