Journal of Petroleum & Environmental Biotechnology

Petroleum consumption and economic growth relationship: Evidence from the Indian states

2^nd World Congress on Petroleum and Refinery

June 01-03, 2017 Osaka, Japan

Seema Narayan, Thai-Ha Le, Badri Narayan Rath and Nadia Doytch

RMIT University, Australia
RMIT University, Vietnam
Indian Institute of Technology Hyderabad, India
City University of New York, USA
Ateneo de Manila University, Philippines

Posters & Accepted Abstracts: J Pet Environ Biotechnol

Abstract:

This paper reveals that over the period 1985 to 2013, the richer states of India saw a prevalence of the feedback hypothesis between real GDP growth and petroleum consumption in the long-run and the short-run. Over the short-term, the (major) 23 Indian states panels show support for the conservative hypothesis. For the panels comprising low and middle income Indian states, while we are able to show significant bidirectional effects, none of the results resonate with the standard definition of the feedback hypothesis that energy consumption increases economic growth which in turn encourages growth in energy demand. Instead, we discover that for the middle and low income states, past higher petroleum consumption can in fact deteriorate economic activity in the short- and long-run. Additionally, for the low income states of India, higher economic growth predicts a fall in petroleum demand.

Biography :

Email: seema.narayan@rmit.edu.au