Economic growth and electricity consumption: Auto regressive distributed lag analysis

Abstract

Knowledge of the direction of causality between electricity consumption and economic growth is of primary importance if appropriate energy policies and energy conservation measures are to be devised. This study estimates the causality relationship between electricity consumption and economic growth in per capita and aggregate levels. The study uses the price and income elasticities of total electricity demand and industrial demand by using the auto regressive distributed lag (ARDL) method for some developed and developing countries, including the US, UK, Canada, Japan, China, India, Brazil, Italy, France, Turkey and South Africa. There is evidence to support the growth hypothesis for the US, China, Canada and Brazil. There is evidence to support the conservation hypothesis for India, Turkey, South Africa, Japan, UK, France and Italy.

Energy consumption, human capital investment and economic growth in South Africa: a vector error correction model analysis

“…Although numerous studies have investigated the relationship between energy and economic growth both at the aggregated and sectoral levels (Mielnik and Goldemberg, ; Ziramba, ; Kebede et al ., ; Bildirici et al ., ; Ben Amar, ; Bildirici and Bakirtas, ; Ilesanmi and Tewari, ) as well as between economic growth and aggregate capital investment (Oh and Lee, ; Perkins et al ., ; Adebola, ; Gill et al ., ; Yildirim and Aslan, ), little attention has given to the role of human capital as it is seldom discussed in most literature although it has been recognized as a vital contributor to economic growth for a long time (Fang and Chang, ). Also, none have studied the distinction between economic and social investment and their impact on economic growth as well as energy consumption.…”

Relationship between biomass energy and economic growth in transition countries: panel ARDL approach

“…Although there are positive externalities of energy consumption on economic growth (Bildirici et al ., ), because of pollution caused by fossil energy, the type of energy is an important problem, humanity is facing the dual pressure of economic growth and environmental protection. In addition, energy problems are the core problems related to national security, sustainable economy and social development in the World (Zhang et al ., ).…”

Do the electricity price shocks influence the Sectoral Production and KSE100 Index in Pakistan? An ARDL structural breaks approach

“…The study of the connection between energy prices and the sector specific industrial production is not common. Although, previous literature mainly focused on the casual connection between the consumption of energy and growth in the economy (Bildirici et al, 2012;Destek & Aslan, 2017;Dogan, 2015;Ghali & El-Sakka, 2004;Ozturk, 2010;Polemis & Dagoumas, 2013;Wolde-Rufael, 2014;Wu et al, 2019). A sector specific relationship with electricity consumption is carried out between 1993-2006 and 1993-2011. The findings proposed that the irregular upsurge in the consumption of electricity is due to the structural changes in the production line (Blignaut et al, 2015;Inglesi-Lotz & Blignaut, 2011).…”

“…A sector specific relationship with electricity consumption is carried out between 1993-2006 and 1993-2011. The findings proposed that the irregular upsurge in the consumption of electricity is due to the structural changes in the production line (Blignaut et al, 2015;Inglesi-Lotz & Blignaut, 2011). Electricity consumption is usually more reactive to GDP (Bildirici et al, 2012;Ciarreta & Zarraga, 2010b, 2010aGhali & El-Sakka, 2004). Using the panel data to analyze the connection between consumption of electricity and growth in the economy of 12 European countries, but still the sectoral investigation is not emphasized (Ciarreta & Zarraga, 2010a).…”