On energy consumption and GDP studies; A meta-analysis of the last two decades

The relationship between energy consumption and GDP growth has been intensely examined in multiple frameworks set by various methods and countries. This paper is a meta-analysis of 51 studies published in the last two decades, with worldwide data since 1949, on the relationship between energy consumption and GDP growth. The aim is to systemize some of the factors that cause the variation of results in these studies. Our results yield evidence that the long run elasticity of GDP growth with respect to energy consumption is not independent of the method employed for cointegration, the data type and the inclusion of variables such as the price level or capital in the cointegration equation. Also 1% increase in capital, increases the elasticity of GDP with respect to energy consumption by 0.85%.