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Causality Relationship Between Electricity Supply and Economic Growth: Evidence from Pakistan

Anam Azam (), Muhammad Rafiq (), Muhammad Shafique (), Muhammad Ateeq () and Jiahai Yuan ()
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Anam Azam: School of Economics and Management, North China Electric Power University, Beijing 102206, China
Muhammad Rafiq: Department of Electrical Engineering, University of Engineering and Technology, Taxila 47050, Pakistan
Muhammad Shafique: Department of Architecture and Civil Engineering, City University of Hong Kong, Hong Kong 999077, China
Muhammad Ateeq: Department of Mechanical Engineering, COMSATS University Islamabad, Sahiwal Campus, Sahiwal 57000, Pakistan
Jiahai Yuan: School of Economics and Management, North China Electric Power University, Beijing 102206, China

Energies, 2020, vol. 13, issue 4, 1-20

Abstract: The long-term anticipation of electricity supply (ELS) and demand has supposed substantial prominence in the elementary investigation to offer sustainable resolutions to electricity matters. In this editorial, an outline of the organization of the electricity segment of Pakistan and analysis of historical supply and demand statistics, an up-to-date position of the contrary set of energy plans is presented. The intention of this analysis is to explore the Granger causality relationship between electricity supply and economic growth (EG) by using a multivariate context with time series statistics covering 1990 to 2015 in Pakistan. Augmented dickey-fuller (ADF) and Philips-Perron (PP) unit root tests indicate that variables are non-stationary and integrated in a similar order (1). Our findings also reveal that variables economic growths (GDP), electricity supply (ELS), investment (INV), and export (EX) are co-integrated. The study also finds the Granger causality runs from EG to ELS deprived of any feedback effect. Therefore, the policy implications from our findings indicate that electricity preservation strategies may be implemented without any economic adverse impacts.

Keywords: electricity supply; economic growth; relationship; Pakistan (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2020
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