A Multiple threshold panel ARDL Approach for studying the impact of stock market development on energy consumption

Abstract This study examines the impact of stock market development on energy consumption (electricity and oil) in a sample of G20 countries for the period from 2000 to 2023. Several different measures of the development of the stock market are examined, in particular, the market capitalization; stock traded total value (% of GDP), the turnover ratio and the number of listed companies. As an estimation method, we use the autoregressive distributed lag model (ARDL panel), more precisely the two estimators MG and PMG. The results provide dynamic relationships (short- and long-term) between stock market development and electricity consumption and only a long-term relationship for oil consumption. The results found are important for energy policies, the development of the stock market must be taken into account when estimating energy demand.