Energy Use and Economic Growth in Jordan

Abstract

The purpose of this research is to investigate the causal relation between energy use and economic growth in one of the MENA countries, Jordan using annual data over the period 1975-2007. The methodology used in this study follows Toda and Yamamoto (1995) procedure in order to test the Granger causality between economic growth and energy use. The empirical results reveal that economic growth Granger causes energy use in Jordan. Thus, these findings lend support to the hypothesis that economic growth positively affects energy use therefore energy conservation policy may not slow the growth in the economy.