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energy dependence

Energy Consumption and Economic Development in Caribbean SIDS


This article examines the direction of causality between energy consumption and economic development in thirteen Caribbean small island developing states, using annual data from 1980 to 2011. We estimate a multivariate model that includes environmental emissions and we utilise the Toda-Yamamoto approach to Granger causality testing to determine causal links in each country. We find evidence of four different types of causal relationships. These results have implications for heterogeneous energy policies in Caribbean economies. 

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