Economic growth, electricity consumption and foreign dependence in Italy between 1963 and 2007

Gaetano Vecchione ()

MPRA Paper from University Library of Munich, Germany

Abstract: The energy sector is assuming an increasing importance in the global economy. As a consequence, there is a vast literature on the causal relation between energy use and others economic variables. In this paper, I investigate the relationship between electricity consumption and economic growth for Italy using yearly data covering the period 1963–2007. Unlike previous works, this paper specifically concerns the causal link between the dynamics of GDP and the different sources of electricity production. Regarding the dependence from foreign suppliers, the paper tests the hypothesis of a causal relationship between economic growth and electricity imports. The results show a unidirectional causality from economic activity to other variables. More specifically, economic growth Granger cause total electricity consumption, industrial consumption and electricity import. For the others source of generation, any specific causal relationship has been found.

Keywords: : Energy and Growth; Italy; Vector Error Correction Model; Granger Causality (search for similar items in EconPapers)
JEL-codes: C32 Q40 Q48 (search for similar items in EconPapers)
Date: 2010-11-22
New Economics Papers: this item is included in nep-ene and nep-fdg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:26907

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