GDP and Energy Mix

In this thesis the relations between Energy Mix and GDP are explored by means of a panel model with energy mix summaries. These variables proxy for the total per capita consumption, the technological development level, the international position and the utilization of energy. To our knowledge this was the first investigation of this kind. The analysis resulted in a group of energy mix variables that explain a significant portion of GDP growth in a classic production function model with capital and labor factors. To counter suspected endogeneity in some of energy mix variables a temperature range instrumental variable is constructed and used. The strongest effects are the energy aggregates such as final energy consumption and the international trade proxies such as the nett trade position or the trade dependence.