Electricity consumption, oil price and economic growth: Global perspective

Sarwar, Suleman; Chen, Wei; Waheed, Rida

doi:10.1016/j.rser.2017.03.063

Cited by 182 publications

(103 citation statements)

References 59 publications

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“…Joyeux and Ripple (2007), using panel data for seven East Indian Ocean countries, found that there was no cointegration between household energy consumption and GDP. Sarwar et al (2017) used the panel cointegration test and panel VECM to examine the dynamic relationship among electricity use, oil price and economic activity for an unbalanced panel covering 210 economies during the 1960-2014 period. Analysis was conducted for the world at large and multiple subgroups of countries based on income and regions (upper middle income, high income, OECD, East Asia and Pacific, low renewable energy consumption, oil import and oil export countries).…”

Section: Electricity Use and Economic Activity Nexusmentioning

confidence: 99%

The relationship between electricity consumption, trade openness and economic growth in India

Ohlan

2018

OPEC Energy Review

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The present study explores the empirical relationship between electricity consumption, trade openness and economic growth in India utilising cointegration tests and Granger causality vector error correction model for the period 1971–2016. The results of ARDL model reveal that the variables are cointegrated. The robustness of the long‐run relationship between variables is confirmed by applying Hatemi‐J cointegration model. The empirical results show that electricity consumption statistically significantly stimulates economic growth in India both in long term and short term. However, the elasticity of economic growth with respect to electricity use is found to be higher in the long term than that of the short term. Furthermore, we find the existence of a long‐term Granger causality flowing from electricity use to economic growth. In addition, the electricity consumption is also commanded by economic growth in the short‐run. As a broad policy implication, India needs to focus on the development of a sustainable mode of electricity production for achieving high economic growth in the years to come.

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Section: Electricity Use and Economic Activity Nexusmentioning

confidence: 99%

The relationship between electricity consumption, trade openness and economic growth in India

Ohlan

2018

OPEC Energy Review

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“…It is a key input in most of the production processes. In particular, due to its importance for the economy, numerous researchers have focused on examining the relationship between electricity consumption and economic growth (e.g., Squalli, 2007, Apergis and Payne 2011, Wolde-Rufael 2014, Rafindadi and Ozturk 2016, Sarwar et al 2017.…”

Section: Introductionmentioning

confidence: 99%

“…In this situation, electricity conservation policies may be implemented without affecting economic growth. Third, the feedback hypothesis evokes a bidirectional causality relationship between economic growth and electricity consumption (e.g., Constantini and Martini 2010, Shahbaz and Lean 2012, Polemis and Dagoumas 2013, Mutascu 2016, Sarwar et al 2017). This feedback effect can serve to implement both energy conservation and efficiency policies without negatively affecting economic growth.…”

Section: Introductionmentioning

confidence: 99%

Production function with electricity consumption and policy implications in Portugal

et al. 2017

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Using a sample of quarterly data, we investigate the effect of electricity consumption, capital formation and financial development on economic growth in Portugal. A positive (negative) shock of electricity consumption is estimated to have increased (decreased) economic growth. Economic growth is positively affected by positive shock stems in capital. A positive (negative) shock in financial development declines (increases) economic growth. These findings reveal that (a) Portugal is still an energy-dependent economy; (b) energy is one of the major inputs for economic growth and development; (c) a conservation energy policy should not be implemented because energy is an important driver of growth; (d) economic growth enhances capital formation and not the opposite. Hence, it appears more relevant to boost economic growth before enhancing capital formation; (e) financial development does not appear to be an important catalyst for economic growth. Findings also highlight (f) the relevance of the recent energy policy implemented in Portugal and (g) the need to limit energy imports by means of producing electricity through renewable energy to reduce the external debt level in Portugal, especially after the 2008 crisis.

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“…So also, Sarwar et al . () found out that the link between oil price and economic growth is negative in full panel, upper‐middle income, high‐income, OECD, East Asia and Pacific, Latin America and Caribbean and Sub‐Saharan Africa region, but there is a positive relationship between oil price and economic growth in low‐middle and South Asian region. Gazdar et al .…”

Section: Review Of Related Literaturementioning

confidence: 98%

The impact of oil price and revenue variations on economic growth in Nigeria

2018

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The study investigates the relationship between oil price, revenue variation and economic growth in Nigeria. The study makes use of a secondary data spanning 1981 and 2016. The Auto‐regressive Distributed Lag was used to analyse the long‐run and short‐run relationship among the variables. The short‐run result shows that oil price and oil revenue positively significantly relates with economic growth, while consumer price index and exchange rate negatively relates with economic growth. In the long‐run, oil price, consumer price index and exchange rate positively relates with economic growth, while oil revenue negatively relates with economic growth. This implies that oil revenue has not been channelled in the direction of enhancing growth in Nigeria, while oil price has been in favour reason been that it determines a larger percentage of the country's revenue. From the findings, the study concludes that variations in oil price and oil revenue are strong determinant factors of economic growth in Nigeria. A major recommendation is that, oil revenue should be restructured towards the strategic sectors of the economy to aid the growth in Nigeria.

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Electricity consumption, oil price and economic growth: Global perspective

Cited by 182 publications

References 59 publications

The relationship between electricity consumption, trade openness and economic growth in India

The relationship between electricity consumption, trade openness and economic growth in India

Production function with electricity consumption and policy implications in Portugal

The impact of oil price and revenue variations on economic growth in Nigeria

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