Energy Consumption And Economic Growth In Algeria Econometric Study

Authors : Taouche Kandouci . Lahoual Benali .

Abstract

 This article aims to analyse the relationship between energy consumption and economic growth in Algeria for the period 1980-2014 using ARDL methodology to determine its implications in terms of economic policies; the empirical results confirm the presence of a long-term relationship between economic growth and per capita energy consumption per capita; in addition, the estimated long-term relationship shows a 1% increase in per capita economic growth led to an increase of 2.10% of the energy consumption per capita. Moreover, Toda Yamamoto causality test indicates the existence of a unidirectional causality in the sense of per capita economic growth to energy consumption per capita, in other words, more economic growth leads to increased energy consumption.