The relationship between an electricity supply ceiling and economic growth: An application of disequilibrium modeling to Taiwan

Mototsugu Fukushige () and Hiroshige Yamawaki
Additional contact information
Hiroshige Yamawaki: Graduate School of Economics, Osaka University

No 13-11, Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics

Abstract: Using a disequilibrium model, we investigate the relationship between the supply constraint of electricity generation capacity and electricity demand in Taiwan. We find that electricity consumption faced supply constraints in Taiwan between 1959 and 1972, but that after 1973 generation capacity grew rapidly, such that economic growth came to be the major determinant of electricity consumption. Our experience in fitting this disequilibrium model suggests that simple causality tests are not a proper means to understand the relationship between electricity consumption and economic growth. Our results also suggest, at least for developing countries, that an electricity supply constraint sometimes plays an important role when investigating the relationship between energy consumption and economic growth.

Keywords: Electricity Supply; Economic Growth; Disequilibrium Model; Taiwan (search for similar items in EconPapers)
JEL-codes: C34 O11 Q43 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2013-06
New Economics Papers: this item is included in nep-cwa, nep-ene and nep-fdg
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www2.econ.osaka-u.ac.jp/library/global/dp/1311.pdf (application/pdf)

Related works:
Journal Article: The relationship between an electricity supply ceiling and economic growth: An application of disequilibrium modeling to Taiwan (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:osk:wpaper:1311

Access Statistics for this paper

More papers in Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics Contact information at EDIRC.
Bibliographic data for series maintained by The Economic Society of Osaka University ().