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http://dx.doi.org/10.15266/KEREA.2020.29.2.195

Analyzing the Relation between Energy Intensity, Energy Price and TFP in Korea  

Kim, Kijin (Department of Economics, Pusan National University)
Won, DooHwan (Department of Economics, Pusan National University)
Jung, Sukwan (Department of Global Business, Changwon National University)
Publication Information
Environmental and Resource Economics Review / v.29, no.2, 2020 , pp. 195-217 More about this Journal
Abstract
The improvement of energy intensity is drawing attention as a way to achieve sustainable development. Energy price and technology level are the main factors affecting energy intensity, and empirical studies on the relationship between the variables have been conducted mainly in overseas countries. However, analyzing the relation between energy intensity, energy price and technology has not been studied in Korea. Therefore, this study analyzed the dynamic relationship between energy intensity, energy price, and total factor productivity (TFP) in Korea. As a result of the analysis, the three variables form a long-term equilibrium relationship. The increase in TFP reduces energy intensity in both short and long term, and the long-term effect is greater than short-term effect. On the other hand, energy price do not have a significant impact on energy intensity. Granger causality test results show that energy intensity and TFP granger cause each other, but energy price is weak-exogenous.
Keywords
Energy Intensity; Long-run Equilibrium; ARDL; Weak-Exogeneity; Granger Causality;
Citations & Related Records
Times Cited By KSCI : 4  (Citation Analysis)
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