Electricity consumption and economic growth: Evidence from Turkey

The aim of this contribution is an investigation of causal interdependences between electricity consumption and GDP in Poland. Our research was conducted for total electricity consumption as well as for the industrial consumption of electricity. In order to reflect the causality between GDP and electricity consumption properly we performed our investigations in a three-dimensional framework with employment chosen as an additional variable. We used reliable quarterly data from the period Q1 2000 -Q4 2009. In order to check the stability of the causalities the investigations were performed on two samples: a full sample and a pre-crisis (i.e. Q1 2000 -Q3 2008) subsample. We applied both traditional methods as well as some recently developed econometric tools.We found feedback between total electricity consumption and GDP as well as between total electricity consumption and employment. We also found unidirectional causality running from industrial electricity consumption to employment and no direct causal links between industrial electricity consumption and GDP. In addition, all these findings were, in general, not seriously affected by the financial and economic crisis of 2008. A significant exception is the causal effect of industrial electricity consumption on employment, which was more pronounced after the crisis of 2008.

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“…Some further calculations (conducted for first differences) confirmed that all nonstationary variables are I(1) regardless of sample size. 3 …”

Section: Stationarity Properties Of the Datasetmentioning

confidence: 99%

The electricity consumption versus economic growth of the Polish economy

Gurgul

2012

Energy Economics

109

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“…For Turkish economy, Altinay and Karagol (2005) investigated the relationship between electricity consumption and economic growth. They concluded that electricity consumption Granger causes economic growth.…”

Section: Literature Reviewmentioning

confidence: 99%

Trivariate causality between economic growth, urbanisation and electricity consumption in Angola: Cointegration and causality analysis

2013

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This paper investigates the causal relationship between economic growth, urbanisation and electricity consumption in the case of Angola, utilizing the data over the period of . We have applied Strazicich (2003, 2004) unit root test to test the stationarity properties of the series. Gregory-Hansen structural break cointegration procedure as complement, we employed the ARDL bounds test to examine long run relationship. The VECM Granger causality test is subsequently used to examine the direction of causality between economic growth, urbanisation and electricity consumption. Our results indicate the existence of long run relationship. We further observe evidence in favour of bidirectional causality between electricity consumption and economic growth. The feedback hypothesis is also found between urbanization and economic growth. Urbanization and electricity consumption Granger cause each other. We conclude that Angola is an energy (electricity) dependent country. Consequently, the relevant authorities should boost electricity production as one of the means of achieving sustainable economic development for long span of time.

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“…Jumbe [4] for example has applied the Granger causality and ECM techniques using 1970-1999 data for Malawi to examine cointegration and causal relation between electricity consumption and GDP growth. Altinay and Karagol [3], Mazumder and Marathe [20]; and Mehrara [21] has also investigates the causal relationship between electricity consumption and economic growth. For example, Altinay and Karagol [3] done his study in Turkey and found that both of the series were stationary process around the structural break.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Altinay and Karagol [3], Mazumder and Marathe [20]; and Mehrara [21] has also investigates the causal relationship between electricity consumption and economic growth. For example, Altinay and Karagol [3] done his study in Turkey and found that both of the series were stationary process around the structural break. Thus, two different methodologies have been employed to test the Granger non-causality analysis.…”

Section: Literature Reviewmentioning

confidence: 99%

Dynamic Cointegration Link between Energy Consumption and Economic Performance: Empirical Evidence from Malaysia

Loganathan¹,

Subramaniam²

2010

IJTEF

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Abstract-During the past three decades, demand for energy in Malaysia grew rapidly, increasing at an average rate of 5% in the 1980s and 12% in 2009, surpassing the gross domestic product growth of 5%; and 3% over the corresponding period. The main objective of this study is to identify sustainability between energy consumption and economic performances during the past three decades by applying Ordinary Least Square Engel-Granger (OLS-EG), Dynamic Ordinary Least Square (DOLS), Autoregressive Distributed Lag (ARDL) bounds testing approach and Error Correction Model (ECM). Utilizing data from 1971-2008, the findings of this study reveals that there is a bidirectional co-integration effects between total energy consumption and Malaysia's economic performance. The key result from this study shows that, energy consumption in Malaysia is on sustainable limits with 57% speed of adjustment to reach long run equilibrium caused by short run shocks in Malaysia's economic performance.

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Electricity consumption and economic growth: Evidence from Turkey

Cited by 388 publications

References 30 publications

The electricity consumption versus economic growth of the Polish economy

The electricity consumption versus economic growth of the Polish economy

Trivariate causality between economic growth, urbanisation and electricity consumption in Angola: Cointegration and causality analysis

Dynamic Cointegration Link between Energy Consumption and Economic Performance: Empirical Evidence from Malaysia

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