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The role of energy in economic growth: A comparison between Denmark and Norway 1960-2012

Nilsson, Mats LU (2017) EKHM52 20151
Department of Economic History
Abstract
The aim is to study the role of energy in economic growth in two Nordic countries, Denmark and Norway. Both countries are welfare states with high living standards but with different energy supply structures. The overall research question is broken down in six hypothesis and the causal relationship between energy consumption and economic growth is determined by Granger causality tests. The role of energy in economic growth seems to be different in Denmark and Norway, at least during the period 1990-2012. The development in Norway might be taken as evidence for the mainstream economic theory where energy only plays an intermediate role while the Danish development seems to be more in line with the ecological economic view where energy has a... (More)
The aim is to study the role of energy in economic growth in two Nordic countries, Denmark and Norway. Both countries are welfare states with high living standards but with different energy supply structures. The overall research question is broken down in six hypothesis and the causal relationship between energy consumption and economic growth is determined by Granger causality tests. The role of energy in economic growth seems to be different in Denmark and Norway, at least during the period 1990-2012. The development in Norway might be taken as evidence for the mainstream economic theory where energy only plays an intermediate role while the Danish development seems to be more in line with the ecological economic view where energy has a central role. The results for Denmark also support the fact that causal relationships may change over time. Possible explanations to the different development in Denmark and Norway might be differences in the energy supply structure and the different development of the structure of their economies. The relative scarcity of domestic energy endowments in Denmark compared to the more abundant access to energy, particular electricity, in Norway seems to have promoted growth of the industry sector with high energy intensity. (Less)
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author
Nilsson, Mats LU
supervisor
organization
course
EKHM52 20151
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Energy consumption, economic growth, Granger causality, energy intensity, structural change, Denmark, Norway.
language
English
id
8901880
date added to LUP
2017-08-28 12:17:19
date last changed
2017-08-28 12:17:19
@misc{8901880,
  abstract     = {The aim is to study the role of energy in economic growth in two Nordic countries, Denmark and Norway. Both countries are welfare states with high living standards but with different energy supply structures. The overall research question is broken down in six hypothesis and the causal relationship between energy consumption and economic growth is determined by Granger causality tests. The role of energy in economic growth seems to be different in Denmark and Norway, at least during the period 1990-2012. The development in Norway might be taken as evidence for the mainstream economic theory where energy only plays an intermediate role while the Danish development seems to be more in line with the ecological economic view where energy has a central role. The results for Denmark also support the fact that causal relationships may change over time. Possible explanations to the different development in Denmark and Norway might be differences in the energy supply structure and the different development of the structure of their economies. The relative scarcity of domestic energy endowments in Denmark compared to the more abundant access to energy, particular electricity, in Norway seems to have promoted growth of the industry sector with high energy intensity.},
  author       = {Nilsson, Mats},
  keyword      = {Energy consumption,economic growth,Granger causality,energy intensity,structural change,Denmark,Norway.},
  language     = {eng},
  note         = {Student Paper},
  title        = {The role of energy in economic growth: A comparison between Denmark and Norway 1960-2012},
  year         = {2017},
}