Energy consumption is one of the strategic concerns for economies around the world, especially in view of depletion of natural resources which ultimately affects economic growth. Interestingly, policy makers in an oil-rich country such as the United Arab Emirates (UAE) have taken steps to bring about efficiency in energy consumption to accelerate the pace of economic growth. Therefore, the objective of the study was to test the relationship between economic growth and electricity consumption in the UAE. The data for the study related to the years between 1985 and 2017. The research used 4 variables including electricity consumption per capita, GDP in current US dollars, labor force and gross capital formation. The study employed unit root test, cointegration analysis and granger causality for making the analysis. We concluded that the variables had unit root at level and stationery at first difference. The bivariate cointegration test showed that electricity consumption had cointegration equation with capital gross fixed formation, GDP and labor force. Finally, the granger causality test showed one directional causality from GDP to electric power consumption and labor force to electric power consumption.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
customersupport@researchsolutions.com
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.