EconPapers    
Economics at your fingertips  
 

Electricity consumption-growth nexus: Evidence from panel data for transition countries

Ali Acaravcı () and Ilhan Ozturk ()

Energy Economics, 2010, vol. 32, issue 3, 604-608

Abstract: This paper investigates the long-run relationship and causality issues between electricity consumption and economic growth in 15 Transition countries (Albania, Belarus, Bulgaria, Czech Republic, Estonia, Latvia, Lithuania, Macedonia, Moldova, Poland, Romania, Russian Federation, Serbia, Slovak Republic and Ukraine) by using the Pedroni panel cointegration method for the 1990-2006 period. Results suggest that the Pedroni panel cointegration tests do not confirm a long-term equilibrium relationship between electricity consumption per capita and real GDP per capita. Moreover, since no cointegration was found, error-correction mechanisms plus causality tests cannot be run for further steps in the long-term to investigate the causality between electricity consumption and economic growth. Overall, it can be said that the electricity consumption related policies have no effect or relation on the level of real output in the long run for these countries. As a conclusion, the literature has conflicting results and there is no consensus either on the existence or the direction of causality between electricity consumption and economic growth. Thus, the findings of this study have important policy implications and it shows that this issue still deserves further attention in future research.

Keywords: Electricity; consumption; Economic; growth; Cointegration; Panel; data; Causality; Transition; countries (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (102) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0140-9883(09)00199-6
Full text for ScienceDirect subscribers only

Related works:
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:eee:eneeco:v:32:y:2010:i:3:p:604-608

Access Statistics for this article

Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant

More articles in Energy Economics from Elsevier
Bibliographic data for series maintained by Nithya Sathishkumar ().

 
Page updated 2021-06-25
Handle: RePEc:eee:eneeco:v:32:y:2010:i:3:p:604-608