Is there any relationship between energy and TFP (total factor productivity)? A panel cointegration approach for Italian regions

TitleIs there any relationship between energy and TFP (total factor productivity)? A panel cointegration approach for Italian regions
Publication TypeJournal Article
Year of Publication2014
AuthorsLadu, MG, Meleddu, M
JournalEnergy
Volume75
IssueOctober
Pagination560–567
Abstract

The aim of this work is to examine the long run relationship between TFP (total factor productivity) and energy consumption in Italy from 1996 to 2008 at a regional level. Differently from previous studies, TFP is employed as a measure of economic growth and therefore of technological change. Dynamic Panel estimation technique is used to investigate whether a connection between TFP and energy use exists and its direction. Results show a bi-directional causality for the Italian regions implying that those regions characterized by a higher TFP would invest more in research rather than in energy intensive activities, improving in that way the use of scarce resources and favoring a sustainable growth.

URLhttp://www.sciencedirect.com/science/article/pii/S0360544214009542
DOI10.1016/j.energy.2014.08.018
Keywordsdynamic panel, energy use, total factor productivity