Browsing by Author "Gaspar, Jorge Fernando dos Santos"
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- On the nexus of energy use - economic development: a panel approachPublication . Gaspar, Jorge Fernando dos Santos; Marques, António Manuel CardosoAt a time when the major concern is the future of the planet, the debate of the distinction between growth and development is ongoing in scientific literature. Traditionally the Gross Domestic Product (GDP) is the indicator commonly used to measure both. However, it is very inefficient to evaluate development. The most prominent indicator as an alternative is the Index of Sustainable Economic Welfare (ISEW). The paper compares the sustainable development proxy (ISEW) with the economic growth measure (GDP), and their relation-ship with energy consumption. The research question is: The usual results for energy-growth nexus found in the literature change with a more suitable indicator to economic development? The traditional hypotheses of the energy-growth nexus are tested through Panel-Corrected Standard Errors estimator (PCSE), for a panel data that contains twenty-two Countries in annual data frequency for the time span 1995-2013. The PCSE is used because in the panel were detected cross-section dependence, serial correlation and heteroscedasticity. The results point out some differences between ISEW and GDP in the energy nexus. It was founded a negative effect from the ISEW on energy consumption, so a new negative conservative hypothesis was founded. The conservative hypothesis was proved for the GDP with energy consumption. It is also noted that for countries having sustainable development, policymakers should review the energy consumption quantity, the way that they manage the trade market, inflation and interested rates optimal levels. Therefore, policymakers should look at ISEW as complementary indicator to GDP and must be adopted by the most countries possible. This may intensify the respect for natural resources, increase the number of energy efficiency policies and improve countries economic welfare.