Jadara Journal For Research and Studies

Jadara Journal For Research and Studies


Due to the current situation of the Jordanian
economy, this paper aims to evaluate the impacts of
economic growth on the energy consumption in a

developing country like Jordan, a country with limited

resources such as oil, agricultural land, and water.
This study is very important since the energy bill
reflects a notable share in the GDP for Jordan, especially

in the recent decade that witnessed energy bill rising due

to different political and financial crisis events.The study

investigates the causal relationship between the per capita

energy consumption and economic growth (proxies

by real gross domestic product per capita in constant

prices) over the 1975-2011 period. A Granger causality

test is utilized on annual time series data. The results

of the study confirm a neutral relationship between real

GDP and energy consumption, indicating that per capita

increase in economic growth may not cause any perpetual

rise in energy consumption in Jordan

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