ECONOMIC GROWTH AND ENERGY CONSUMPTION OF THE ALGERIAN’S TRANSPORT SECTOR: AN ARDL APPROACH

Abstract

Transport is a strategic sector for economic development while being one of the most polluting sectors. This paper analyzes how GDP affects energy consumption by transport in Algeria during 1980-2019. Using the ARDL model, the objective is to detect possible cointegrations between energy consumption and economic growth in both the short and long term. The results obtained show that depending on the temporality, GDP affects energy consumption in transport differently. Indeed, economic growth affects the latter negatively in the short term and positively in the long term. Oil and diesel prices show the same trend, i.e., negative effects in the long term and positive effects in the short term