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Advisor(s)
Abstract(s)
This paper inaugurates the study of the energy-sustainable economic growth for Europe. It is novel both
because it calculates an Index for Sustainable EconomicWelfare (ISEW) index for European countries, but
foremost because it compares the conventional energy-growth nexus with the newly appeared energysustainable
growth nexus. Also, it goes further by suggesting ways to overcome the limitations pointed
out to the use of the conventional GDP. The paper uses the road sector energy consumption, which is in
accordance with the enormous discussion about the high energy intensity of the road transport sector
and about the huge dependence from fossil sources of this sector. The dynamic Driscoll-Kraay estimator
is also used, which allows decomposing the effects in the short- and long-run and is also robust in the
presence of cross-sectional dependence. Results show that economic growth and sustainable economic
welfare are not perfect substitute variables. In the long-run, the feedback hypothesis is verified only for
sustainable growth.
Description
Keywords
Driscoll-Kraay estimator Europe GDP growth ISEW Road energy consumption