Electricity consumption and economic development in Asia: new data and new methods

Abstract

This study uses a new statistical technique, Panel Analysis of Nonstationarity in Idiosyncratic and Common Components (PANIC) analysis, to examine causal linkages between electricity consumption and economic development in 12 Asian countries over the period 1971–2011. The findings indicate that there was no long‐run equilibrium relationship between electricity consumption and economic development in the region as a whole. More importantly, the causality tests detected unidirectional causality from economic development to electricity consumption for East Asian countries and a reverse causal relationship for South Asian countries. These findings have important policy implications for sustainable energy consumption.

Financial development, energy consumption, and economic growth: Some recent evidence for India

“…While the panel cointegration analysis indicates that there is a positive long‐term association between the variables, the fixed‐effect method findings highlight a significant relationship between them. Furthermore, it provides support for the argument offered by Furuoka (2015) in his paper. The author examines the nexus between financial sector development and consumption of energy for Asian economies during the span of 1980–2012.…”

“…The rising urban population requires more energy for their regular activities, which further intensifies its economic growth. Similarly, in the past literature, there is a lengthy discussion about the relationship between economic growth and trade openness (Furuoka, 2015; Kahouli & Omri, 2017). The inconclusive findings, however, suggest that India may not generalize the effects of trade openness.…”

“…The nexus between finance and energy in other countries growth and trade openness (Furuoka, 2015;Kahouli & Omri, 2017).…”

“…A few papers use the autoregressive distributed lag (ARDL) technique, for example, Bekhet, Matar, and Yasmin (2017); Fuinhas and Marques (2012); Ohlan (2016); and Sehrawat, Giri and Mohapatra (2015). While Mahalik, Babu, Loganathan, and Shahbaz (2017) and Islam et al (2013) use the cointegration model in their papers, some of the studies focus on Granger causality tests (Dan & Lijun, 2009; Furuoka, 2015). However, energy consumption use is a significant tool for sustainable growth.…”

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

“…For Turkish economy, Dogan, (2015) noted that nonrenewable electricity consumption is positively linked with economic growth but renewable electricity consumption declines it. Furuoka, (2015) explored the association between the variables of interest using data of South Asia. The results showed the presence of cointegration and electricity consumption is cause of economic growth.…”