Chapter 10

Simultaneous Equations Modeling in the Energy-Growth Nexus

Heli Arminen    Lappeenranta University of Technology, Lappeenranta, Finland


This chapter presents a simplified simultaneous equations model that can be used in the energy-growth nexus (EGN). Key concepts related to simultaneous equations modeling (SEM) are illustrated. SEM estimation methods with cross-sectional, time-series and panel data are also covered, and the framework is used to demonstrate the methods in practice. This chapter concludes with recommendations for future research.


economic growth
energy consumption
environmental Kuznets curve
simultaneous equations modeling

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