Does urbanization cause increasing energy demand in Pakistan? Empirical evidence from STIRPAT model

Muhammad Shahbaz, A. R. Chaudhary and Ilhan Ozturk

MPRA Paper from University Library of Munich, Germany

Abstract: This paper reinvestigates the relationship between urbanization and energy consumption in case of Pakistan for the period of 1972Q1-2011Q4 by employing the STIRPAT (Stochastic Impact by Regression on Population, Affluence and Technology) model. We have employed the ARDL bounds testing approach to cointegration in the presence of structural breaks stemming in the series to count for these missing elements in other studies. Finally, the VECM Granger causality approach has been applied to examine the causal relationship between the variables. Our results show that urbanization adds in energy consumption. Affluence (economic growth) increases energy demand. Technology has positive impact on energy consumption. An increase in transportation is positively linked with energy consumption. The causality analysis indicates the unidirectional causality running from urbanization to energy consumption.

Keywords: Urbanization; Energy Demand; STIRPAT; Pakistan (search for similar items in EconPapers)
JEL-codes: E00 (search for similar items in EconPapers)
Date: 2016-03-02, Revised 2016-03-19
New Economics Papers: this item is included in nep-ene, nep-mac and nep-pke
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Journal Article: Does urbanization cause increasing energy demand in Pakistan? Empirical evidence from STIRPAT model (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:70313

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