Economic growth and energy consumption in Brazil: cointegration and causality analysis

Energy is a crucial part of any economy and holds a central position in enhancing social development in the world. Energy consumption and the economy in Brazil have both increased in the past decade. In this paper, time series statistics from 1980 to 2017 will be used to analyze the relationship between real GDP per capita and energy consumption to will examine how energy use in the country affects economic growth using causality models. This is established through testing for stationarity using Kwiatkowski–Phillips–Schmidt–Shin (KPSS) test for trend stationarity. A cointegration relationship is found between the two variables.