Energy-GDP relationship in Vietnam: A social accounting matrix modelling analysis

Crawford School of Public Policy
Photo by Eric Van Buskirk on ClickStream

Event details

PhD Seminar (Econ)

Date & time

Friday 05 March 2021


Online via Zoom


Thi Kim Thai Nguyen


Ryan Edwards

Energy, especially fossil fuels, is an essential driver of economic growth yet contributes significantly to greenhouse gas emissions. Improvements in global energy intensity have been slowing down gradually since 2015. The situation calls attention to the current position of the energy sector in growing economies, particularly the energy requirements to generate one unit of national output. This study examines the energy-GDP relationship in Vietnam by constructing a multiplier analysis model using the social accounting matrix (SAM) of Vietnam. The model controls for linkages across sectors and the level of inter-dependence between energy and other sectors in the economy. Results show that the elasticity of energy consumption with respect to GDP is, on average, 0.85 which is relatively higher than the world average. The results suggest there are significant opportunities for promoting a transformation into green energies, and cross-sectoral linkages must be taken into account in development policies.

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