Revisiting the Relationship between Electricity Consumption, Capital and Economic Growth: Cointegration and Causality Analysis in Romania

Muhammad Shahbaz, Mihai Mutascu and Aviral Tiwari

Journal for Economic Forecasting, 2012, issue 3, 97-120

Abstract: The paper empirically analyzes, in Romania’s case, the cointegration and causality between electricity consumption, capital and economic growth. The data set covers the period 1980-2011. The results show the existence of bidirectional causality between electricity consumption and economic growth and between economic growth and capital use. At the same time, a unidirectional causal relation is also found from capital use to electricity consumption. The main finding suggests that electricity conservation policies may hinder economic growth by reduction in electricity consumption. Moreover, in the opposite direction, from economic growth to electricity consumption, the fluctuations in economic growth may reduce demand for electricity.

Keywords: electricity consumption; growth; cointegration (search for similar items in EconPapers)
JEL-codes: F15 O16 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (23)

Downloads: (external link)
http://www.ipe.ro/rjef/rjef3_12/rjef3_2012p97-120.pdf

Related works:
Working Paper: Revisiting the relationship between electricity consumption, capital and economic growth: Cointegration and causality analysis in Romania (2011)
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:rjr:romjef:v::y:2012:i:3:p:97-120

Access Statistics for this article

Journal for Economic Forecasting is currently edited by Lucian Liviu Albu and Corina Saman

More articles in Journal for Economic Forecasting from Institute for Economic Forecasting Contact information at EDIRC.
Bibliographic data for series maintained by Corina Saman ( this e-mail address is bad, please contact ).