Energy consumption and GDP relationship: evidence from a panel cointegration of ten Latin America Countries between 1971 - 2007

Abstract

In this paper estimates the long-term relationship in the relationship Energy Consumption - GDP and GDP - Energy Consumption for 10 Latin America countries during the period 1971 to 2007. Through Cointegration test of Westerlund (2006) for panel data, which takes into account the possible dependence between countries (Cross-Section) and any existing structural breaks in long-run relationship, we calculate the elasticities, both individual and regional level. Above, to provide empirical evidence on the ability to design and implement policies those promote energy conservation. Cointegration is found to exist in both directions, energy consumption to GDP, and GDP to energy consumption. It shows the energy dependence of some countries, as well as the possibility of implementing energy conservation in others.Consumo de Energía, Estacionariedad en Panel, Cointegración Panel, América Latina.