Link between Economic Growth and Energy Consumption in Over 90 Countries

This paper studies the relationship between economic growth (GDP) and energy consumption (EC) by using panel data for 95 countries from 1971 to 2008. The World Bank classification helps us to divide our 95 countries into four income groups of countries: low income group, lower-middle income group, upper-middle income group and high income group countries. To specify what matter, we use panel data analysis. The empirical results conclude that panel causality test results reveal that there is a long-run Granger causality running from GDP to EC for low and high income countries and bidirectional Granger causality between GDP and EC for the lower-middle and upper-middle income countries.