Coal consumption and industrial production nexus in USA: Cointegration with two unknown structural breaks and causality approaches

Yildirim E., Aslan A. , Ozturk I.

RENEWABLE & SUSTAINABLE ENERGY REVIEWS, cilt.16, sa.8, ss.6123-6127, 2012 (SCI İndekslerine Giren Dergi) identifier identifier

  • Yayın Türü: Makale / Derleme
  • Cilt numarası: 16 Konu: 8
  • Basım Tarihi: 2012
  • Doi Numarası: 10.1016/j.rser.2012.07.002
  • Sayfa Sayıları: ss.6123-6127


The paper investigates the causality relationships among industrial production index, coal consumption and employment in industrial sector for the period of 1973:1-2011:10 in USA. After noticing that there are breaks in the regression model, the Hatemi-J test for cointegration is employed to the cases that take into account two possible regime shifts. It is concluded that there is a long run relationship between industrial production and industrial coal consumption with the breaks at 1983:4 and 1998:4. We found a negative relationship between coal consumption and industrial production for the period of 1973:1-1983:4 and positive relationship for 1983:5-1998:4 period. For the last period that covers 1983:5-2011:10, the cointegration relationship turned to negative. In addition, the results show that causal relationship between coal consumption and industrial production changes over time. (C) 2012 Elsevier Ltd. All rights reserved.