The Economics and Econometrics of the Energy-Growth Nexus

Introduction

Angeliki N. Menegaki^{*** *}    TEI STEREAS ELLADAS, University of Applied Sciences, Lamia, Greece^**    Hellenic Open University, Patras, Greece

Energy is feeding growth, because it is an input to every kind of good or service. Particularly, after the industrial revolution, growth has become inextricably woven with energy use, together with other important inputs, such as capital and labor. While the primitive man used wood for the production of the required energy in his everyday life, the man progressively passed to other energy vehicles, such as coal, oil, and other fossil fuel types, with the latter two being the mostly used and consumed fuel types since 1820 as shown in Fig. 1 (note that 1 EJ = 10¹⁸ J).

Figure 1 World Energy Consumption ...