Revisiting the relationship between electricity consumption, capital and economic growth: Cointegration and causality analysis in Romania

Mihai Mutascu, Muhammad Shahbaz and Aviral Tiwari

MPRA Paper from University Library of Munich, Germany

Abstract: The paper empirically analyzes, in the Romania’s case, the cointegration and causality between electricity consumption, capital and economic growth. The data set is covering the period 1980 - 2008. The results show the existence of bidirectional causality between electricity consumption and economic growth and between economic growth and capital use. In 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 retard 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: B29 F15 O16 (search for similar items in EconPapers)
Date: 2011-02-01
New Economics Papers: this item is included in nep-ene and nep-fdg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Related works:
Journal Article: Revisiting the Relationship between Electricity Consumption, Capital and Economic Growth: Cointegration and Causality Analysis in Romania (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:29233

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