Is the globalization influencing the primary energy consumption? The case of Latin America and Caribbean countries

Abstract

This article investigates the relationship between globalization and primary energy consumption in twelve Latin America and Caribbean countries from 1991 to 2012 using the auto-regressive distributive lag (ARDL) methodology. The elasticities results showed that increase of 1% on index globalization exerts a positive impact of 0.4449 % above the primary energy consumption. The variables gross domestic product (GDP) and dioxide carbon emissions (CO2) exert a positive impact in short and long-run, as well as the variable capital account openness has a negative effect in long-run.