TY - JOUR
T1 - Examining asymmetric behavior between energy consumption and economic growth in Taiwan
AU - Hu, Jin-Li
AU - Lin, C. H.
PY - 2012
Y1 - 2012
N2 - Energy consumption growth has recently been higher than economic growth in Taiwan, worsening energy efficiency. This article utilizes the momentum-threshold autoregressive cointegration method to examine the long-run equilibrium relationship between economic growth and energy consumption growth, particularly focusing on the most energy-consuming sectors in Taiwan. Allowing for a thresh- old effect sheds new light on the explanation of the non-linear characteristics of the energy-growth link. The results indicate that economic growth is non-linearly cointegrated with energy consumption when the asymmetric adjusting behavior is confirmed. Specifically, we find that the deviations adjust persistently toward equilibrium in a relative energy efficiency regime for the aggregate-level, while for the sector level in a relative energy inefficiency regime. The government authority should conduct effective energy demand-side management to improve energy efficiency.
AB - Energy consumption growth has recently been higher than economic growth in Taiwan, worsening energy efficiency. This article utilizes the momentum-threshold autoregressive cointegration method to examine the long-run equilibrium relationship between economic growth and energy consumption growth, particularly focusing on the most energy-consuming sectors in Taiwan. Allowing for a thresh- old effect sheds new light on the explanation of the non-linear characteristics of the energy-growth link. The results indicate that economic growth is non-linearly cointegrated with energy consumption when the asymmetric adjusting behavior is confirmed. Specifically, we find that the deviations adjust persistently toward equilibrium in a relative energy efficiency regime for the aggregate-level, while for the sector level in a relative energy inefficiency regime. The government authority should conduct effective energy demand-side management to improve energy efficiency.
KW - Asymmetric adjustments
KW - Energy efficiency
KW - Momentum-threshold autoregressive (M-TAR)
KW - Non-linearity
KW - Threshold cointegration
UR - http://www.scopus.com/inward/record.url?scp=84868656341&partnerID=8YFLogxK
U2 - 10.1080/15567240903160922
DO - 10.1080/15567240903160922
M3 - Article
AN - SCOPUS:84868656341
SN - 1556-7249
VL - 8
SP - 76
EP - 85
JO - Energy Sources, Part B: Economics, Planning and Policy
JF - Energy Sources, Part B: Economics, Planning and Policy
IS - 1
ER -