Dynamics of energy use, technological innovation, economic growth, and trade openness in Bangladesh

This empirical study uses the Marshallian demand function as the underlying framework to investigate the relationship between technological innovations and energy consumption in Bangladesh. The underlying theoretical framework argues that technological innovation, which is regarded as an exogenous variable, will increase energy efficiency and lead to reduced energy consumption up to a certain economic output. ARDL (autoregressive distributed lag) bounds testing approach is used with a sample period from 1980 to 2016 (37 years). This study empirically establishes the validity of the theoretical predictions both in the short and long run. Furthermore, the study identifies the Environmental Kuznets Curve (EKC) hypothesis and shows the dynamics of GDP per capita and trade openness on energy consumption in Bangladesh.