The third hypothesis is the neutrality hypothesis. The testable hypothesis presumes that energy consumption is a
small component of the economy’s output and thus may have little or no effect on economic growth. As in the case
of the conservation hypothesis, energy conservation policies would not have an adverse effect on economic growth.
The neutrality hypothesis is supported by the presence of no causal relationship between energy consumption and
real GDP. The empirical studies carried out by Cheng (1997) for Mexico and Venezuela, except Brazil, were
consistent with the neutrality hypothesis