Disaggregate energy consumption and industrial output in Pakistan: An empirical analysis

Ahmar Qazi (), Khalid Ahmed and Muhammad Mudassar

No 2012-29, Economics Discussion Papers from Kiel Institute for the World Economy (IfW Kiel)

Abstract: The study concentrates on the relationship between disaggregate energy consumption and industrial output in Pakistan by utilizing the Johansen Method of Cointegration. The results confirm the positive effect of disaggregate energy consumption on industrial output. Furthermore, bidirectional causality is identified in the case of oil consumption, whereas unidirectional causality running from electricity consumption to industrial output is observed. Moreover, unidirectional causality has been noticed from industrial output to coal consumption although there is no causality between gas consumption and industrial output. It is obvious that conservative energy policies could be harmful to the industrial production; therefore, the government has to develop innovative energy policies in order to meet the demand for energy. Additionally, the government has to pay serious attention to alternative energy sources such as solar and wind in order to boost the clean industrial growth.

Keywords: disaggregate energy consumption; industrial output; Johansen cointegration test (search for similar items in EconPapers)
JEL-codes: C32 Q42 (search for similar items in EconPapers)
Date: 2012
New Economics Papers: this item is included in nep-cwa and nep-ene
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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https://www.econstor.eu/bitstream/10419/59591/1/718693515.pdf (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwedp:201229

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