<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>Several studies have examined the implications of different macroeconomics variables on energy consumption, but the findings have been mixed, in addition, the study in the context of Egypt have been scant in the literature. Thus, our study investigates economic growth, gross capital formation, urbanization, and import as the determinants of energy consumption in Egypt using a time series from 1971 to 2017, and employed a wavelet coherent technique for the analysis. This study demonstrates a positive correlation between energy consumption and urbanization at different scales, as well as revealing a bidirectional causal relationship between the two variables. Moreover, this study shows a positive correlation between energy consumption and import, and also revealed import as a significant determinant of energy consumption at different frequencies in Egypt. In addition, an evidence of bidirectional causality was found between economic growth and energy consumption, while gross capital formation was also found to cause energy consumption in Egypt during the period of study. Our findings provide empirical rationale for the initiations by the policymakers in Egypt towards formulating policies that will ensure sustainable energy consumption in the country.</p>
</abstract>

Several studies have examined the implications of different macroeconomics variables on energy consumption, but the findings have been mixed, in addition, the study in the context of Egypt have been scant in the literature. Thus, our study investigates economic growth, gross capital formation, urbanization, and import as the determinants of energy consumption in Egypt using a time series from 1971 to 2017, and employed a wavelet coherent technique for the analysis. This study demonstrates a positive correlation between energy consumption and urbanization at different scales, as well as revealing a bidirectional causal relationship between the two variables. Moreover, this study shows a positive correlation between energy consumption and import, and also revealed import as a significant determinant of energy consumption at different frequencies in Egypt. In addition, an evidence of bidirectional causality was found between economic growth and energy consumption, while gross capital formation was also found to cause energy consumption in Egypt during the period of study. Our findings provide empirical rationale for the initiations by the policymakers in Egypt towards formulating policies that will ensure sustainable energy consumption in the country.

Determinants of Energy Consumption in Egypt: The Wavelet Coherence Approach

Studies in Business and Economics

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"Determinants of Energy Consumption in Egypt: The Wavelet Coherence Approach"}

Several studies have examined the implications of different macroeconomics variables on energy consumption, but the findings have been mixed, in addition, the...

Determinants of Energy Consumption in Egypt: The Wavelet Coherence Approach

Published Online: Sep 27, 2021

Page range: 186 - 205

DOI: https://doi.org/10.2478/sbe-2021-0033

Keywords
Energy consumption, Environmental pollution, Economic growth, Wavelet Coherent, Egypt

© 2021 Odugbesan Jamiu Adetola et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Determinants of Energy Consumption in Egypt: The Wavelet Coherence Approach

Published Online: Sep 27, 2021

Page range: 186 - 205

DOI: https://doi.org/10.2478/sbe-2021-0033

KeywordsEnergy consumption, Environmental pollution, Economic growth, Wavelet Coherent, Egypt

© 2021 Odugbesan Jamiu Adetola et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
Energy consumption, Environmental pollution, Economic growth, Wavelet Coherent, Egypt