The Effect of Energy Consumption on Economic Growth in Industrialized G8 Countries (1990-2011)

Consumption of energy, due to its unique characteristics can transform a society and job framework. This question about Germany, Italy, Britain, Japan, France, America, Russia, Canada is also true. In this study, using panel data, Influence factors of energy consumption and economic growth have been reviewed in industrialized countries of G8 in the period 1990 to 2011 and has been tested the long-term concurrent relationships between variables based on the model of error correction method and is calculated for each variable. The results indicate that the labor force is in the first or second generation and increasing it will increase production. In other words, G8 states of the workforce are still not saturated and labor is considered as one of the most important growth factors. Physical capital is a basic requirement for the development of G8 countries and the need to increase investments and an increase in physical capital for economic growth is felt. Many factors affect the energy is positive and significant. For example, the consumption of gas has the most significant effect on economic growth indicating that gas energy technologies have higher productivity and economic growth further increases. After gas, energy technology of the different ways of producing electricity has a significant positive effect on the way G8 countries. Water as an energy technology has some negative effect on production. Effects of nuclear energy technology are also positive and significant, but small.