Electricity consumption-economic growth Nexus: An aggregated and disaggregated causality analysis in India and Pakistan

Abbas, Faisal; Choudhury, Nirmalya

doi:10.1016/j.jpolmod.2012.09.001

Cited by 106 publications

(51 citation statements)

References 37 publications

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“…The first group comprises those studies that investigate the causal links between energy consumption and economic growth and it was initiated by Kraft and Kraft (1978). A rather complete review of the related literature can be found in Payne (2010), Ozturk (2010), Abbas and Choudhury (2013) and Yıldırım et al (2014). Existing work in this group of study does not provide a single interpretation to describe the aforementioned relation-ship, but rather, four alternative hypotheses: i) the growth hypothesis, ii) the conservation hypothesis, iii) the feedback hypothesis and iv) the neutrality hypothesis.…”

Section: Brief Literature Reviewmentioning

confidence: 99%

“…The first group consists of studies that investigate the causal links between energy consumption and economic growth (see, among others, Kraft and Kraft, 1978;Chiou-Wei et al, 2008;Chontanawat et al, 2008;Huang et al, 2008;Akinlo, 2009;Apergis and Payne, 2009b;Ghosh, 2009;Payne, 2010;Ozturk, 2010;Eggoh et al, 2011;Joyeux and Ripple, 2011;Chu and Chang, 2012;Dagher and Yacoubian, 2012;Abbas and Choudhury, 2013;Bozoklu and Yilanci, 2013;Dergiades et al, 2013;Yıldırım et al, 2014). The second group of studies concentrates its attention on the relationship between economic activity and emissions (e.g.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Energy consumption, CO 2 emissions, and economic growth: An ethical dilemma

Antonakakis¹,

Chatziantoniou

Filis

2017

Renewable and Sustainable Energy Reviews

395

129

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In this study we examine the dynamic interrelationship in the output-energyenvironment nexus by applying panel vector autoregression (PVAR) and impulse response function analyses to data on energy consumption (and its subcomponents), carbon dioxide emissions and real GDP in 106 countries classified by different income groups over the period 1971-2011. Our results reveal that the effects of the various types of energy consumption on economic growth and emissions are heterogeneous on the various groups of countries. Moreover, causality between total economic growth and energy consumption is bidirectional, thus making a case for the feedback hypothesis. However, we cannot report any statistically significant evidence that renewable energy consumption, in particular, is conducive to economic growth, a fact that weakens the argument that renewable energy consumption is able to promote growth in a more efficient and environmentally sustainable way. Finally, in analysing the case for an inverted U-shaped EKC, we find that the continued process of growth aggravates the greenhouse gas emissions phenomenon. In this regard, we cannot provide any evidence that developed countries may actually grow-out of environmental pollution. In the light of these findings, the efficacy of recent government policies in various countries to promote renewable energy consumption as a means for sustainable growth is questioned. Put differently, there seems to be a moral dilemma, between high economic growth rates and unsustainable environment and low or zero economic growth and environmental sustainability.

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Section: Brief Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Energy consumption, CO 2 emissions, and economic growth: An ethical dilemma

Antonakakis¹,

Chatziantoniou

Filis

2017

Renewable and Sustainable Energy Reviews

395

129

View full text Add to dashboard Cite

show abstract

“…India is a large South Asian developing country that has experienced a high increase in gross domestic product over the past several decades [29]. The current lag of the basic industry has caused India to suffer from the effects of energy shortage.…”

Section: Data Selectionmentioning

confidence: 99%

“…As per the published data from the Central Electricity Authority, India experienced an energy deficit of 8.5% and a peak demand shortage of 9.8% for the financial year 2010 to 2011. Of all the energy sources, electricity is experiencing the most severe shortage and has resulted in a massive loss to the national economy [29]. Precisely forecasting India's yearly electricity consumption will have great significance in adjusting energy-related policies and in promoting economic growth.…”

Section: Data Selectionmentioning

confidence: 99%

Yearly Electricity Consumption Forecasting using a Nonhomogeneous Exponential Model Optimized by PSO Algorithm

Xu¹,

Niu²,

Meng³

et al. 2014

Appl. Math. Inf. Sci.

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Abstract:Yearly electricity consumption trends of most developing countries usually exhibit approximately exponential growth curves. An optimized nonhomogeneous exponential model (ONEM) is proposed as a method of forecasting electricity consumption by using trend extrapolation. The parameters of the nonhomogeneous exponential equation are obtained by using the inverse accumulated generating operation, discretizing the differential equation, minimizing the residual sum of squares (RSS), and accumulating the homogeneous exponential equation. Furthermore, to improve forecasting precision, particle swarm optimization (PSO) algorithm is used to optimize the equation parameters. To evaluate the forecasting performance for comparison, the said model and two other traditional methods are used to forecast the yearly electricity consumption of India. Empirical results show that this model is much better than traditional methods for each error analysis indicator.

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“…They propose that this negative relationship might be attributed to the growing economy production shifting towards less-energy-intensive sectors and excessive energy consumption in relatively unproductive sectors. For the specific case of India, the disaggregated causality analysis in Abbas and Choudhury (2013) suggests a bi-directional causality between the agricultural electricity consumption and the agricultural GDP in India.…”

mentioning

confidence: 99%