Causality relationship between electricity consumption and GDP in Bangladesh

Mozumder, Pallab; Marathe, Achla

doi:10.1016/j.enpol.2005.11.033

Cited by 355 publications

(176 citation statements)

References 21 publications

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“…Alam and Sarker (2010) also confirmed that in short-run, electricity generation causes economic growth. In contrast, Mozumder and Marathe (2007) concluded that a reverse causation which runs from economic growth to electricity consumption demand for Bangladesh during 1971 to 1999.…”

Section: Literature Reviewmentioning

confidence: 99%

Estimation of electricity demand function for Algeria: Revisit of time series analysis

Khraief

Shahbaz

Mallick

et al. 2018

Renewable and Sustainable Energy Reviews

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This paper aims to empirically re-examine whether economic growth has effect on electricity consumption for Algerian economy. We have incorporated urbanisation and trade openness in electricity demand function as additional determinants of electrictyy consumption for the period of 1971-2012. For empirical purpose, we have applied the recently developed combined cointegration test proposed by Bayer and Hanck (2013) and bounds testing approach to cointegration by Pesaran et al. (2001) for establishing the cointegration between the variables by accomodating structural breaks.The results expose that income growth leads to higher electricity demand along with urbanization being another major contributing factor of rising electricity demand. In contrast, trade openness leads to reduce electricity demand. The causal association between the variables is further exmained with the application of innovation accounting approach of Vector Autoregressive (VAR). The empirical evidnce inidactes the presence of the neutral effect between income growth and electricity use. Urbanization causes electricity use and electricity use causes urbaniation in Granger sense.

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Section: Literature Reviewmentioning

confidence: 99%

Estimation of electricity demand function for Algeria: Revisit of time series analysis

Khraief

Shahbaz

Mallick

et al. 2018

Renewable and Sustainable Energy Reviews

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show abstract

“…The latter focused on country coverage, variables selected, model specification, econometric approaches and empirical results. In general, the results for the specific countries and time periods were a bit surprising, since they showed that in around 31.15% of all cases the neutrality hypothesis (i.e. no causality in any direction) was supported; in 27.87% -the conservation hypothesis (growth causes electricity consumption) held; in 22.95% -the growth hypothesis (electricity usage causes growth) and in 18.03% the feedback hypothesis (bidirectional causality) was found to be valid.…”

Section: Literature Overviewmentioning

confidence: 99%

The electricity consumption versus economic growth of the Polish economy

Gurgul

2012

Energy Economics

109

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The aim of this contribution is an investigation of causal interdependences between electricity consumption and GDP in Poland. Our research was conducted for total electricity consumption as well as for the industrial consumption of electricity. In order to reflect the causality between GDP and electricity consumption properly we performed our investigations in a three-dimensional framework with employment chosen as an additional variable. We used reliable quarterly data from the period Q1 2000 -Q4 2009. In order to check the stability of the causalities the investigations were performed on two samples: a full sample and a pre-crisis (i.e. Q1 2000 -Q3 2008) subsample. We applied both traditional methods as well as some recently developed econometric tools.We found feedback between total electricity consumption and GDP as well as between total electricity consumption and employment. We also found unidirectional causality running from industrial electricity consumption to employment and no direct causal links between industrial electricity consumption and GDP. In addition, all these findings were, in general, not seriously affected by the financial and economic crisis of 2008. A significant exception is the causal effect of industrial electricity consumption on employment, which was more pronounced after the crisis of 2008.

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“…Jumbe [4] for example has applied the Granger causality and ECM techniques using 1970-1999 data for Malawi to examine cointegration and causal relation between electricity consumption and GDP growth. Altinay and Karagol [3], Mazumder and Marathe [20]; and Mehrara [21] has also investigates the causal relationship between electricity consumption and economic growth. For example, Altinay and Karagol [3] done his study in Turkey and found that both of the series were stationary process around the structural break.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Thus, two different methodologies have been employed to test the Granger non-causality analysis. Mazumder and Marathe [20] examined the causal relationship between per capita electricity consumption and per capita GDP in Bangladesh using cointegration and ECM. The finding indicates that there was unidirectional causality running from per capita GDP using per capita electricity consumption.…”

Section: Literature Reviewmentioning

confidence: 99%

Dynamic Cointegration Link between Energy Consumption and Economic Performance: Empirical Evidence from Malaysia

Loganathan¹,

Subramaniam²

2010

IJTEF

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Abstract-During the past three decades, demand for energy in Malaysia grew rapidly, increasing at an average rate of 5% in the 1980s and 12% in 2009, surpassing the gross domestic product growth of 5%; and 3% over the corresponding period. The main objective of this study is to identify sustainability between energy consumption and economic performances during the past three decades by applying Ordinary Least Square Engel-Granger (OLS-EG), Dynamic Ordinary Least Square (DOLS), Autoregressive Distributed Lag (ARDL) bounds testing approach and Error Correction Model (ECM). Utilizing data from 1971-2008, the findings of this study reveals that there is a bidirectional co-integration effects between total energy consumption and Malaysia's economic performance. The key result from this study shows that, energy consumption in Malaysia is on sustainable limits with 57% speed of adjustment to reach long run equilibrium caused by short run shocks in Malaysia's economic performance.

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Causality relationship between electricity consumption and GDP in Bangladesh

Cited by 355 publications

References 21 publications

Estimation of electricity demand function for Algeria: Revisit of time series analysis

Estimation of electricity demand function for Algeria: Revisit of time series analysis

The electricity consumption versus economic growth of the Polish economy

Dynamic Cointegration Link between Energy Consumption and Economic Performance: Empirical Evidence from Malaysia

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