Augmented energy-growth nexus: economic, political and social globalization impacts

The augmented energy-growth nexus with globalization is analyzed for a panel of 43 countries between 1971 to 2013, by using an autoregressive distributed lag (ARDL) approach. The impacts of economic, political and social globalization on energy-growth nexus are explored. The results are consistent with the presence of cointegration. Evidences of the traditional feedback hypothesis on the energy-growth nexus was found. Economic, political and social globalization have heterogenous impacts on the nexus. In general, globalization is a long-run driver of both energy consumption and economic growth. Accordingly, globalization should be promoted. In addition, restrictive energy policies should be avoided or carefully designed to no hamper economic growth.