The long-run causal relationship between electricity consumption and real GDP: Evidence from Japan and Germany

Ikegami, Masako; Wang, Zijian

doi:10.1016/j.jpolmod.2016.10.007

Cited by 37 publications

(10 citation statements)

References 18 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Iyke (2015) and Sun and Anwar (2015) conclude that there is a positive causality running from electricity consumption to real GDP that supports the growth hypothesis in Nigeria and Singapore, respectively. Conversely, Ikegami and Wang (2016) find evidence that there is a unidirectional and positive causality running from real GDP to combustible fuels electricity supplied in Germany, supporting the conservation hypothesis. The evidence in favour of the feedback hypothesis is very common.…”

Section: Economic Growth or Electricitymentioning

confidence: 70%

Economic growth or electricity, what came first in Spain after 1958?

Villarroya

Sanz-Villarroya

Pérez

2020

AEA

View full text Add to dashboard Cite

Purpose With the opening up of the economy since the 1959 Economic Stabilization Plan, was it the production of electricity that drove the growth of gross domestic product (GDP) in Spain or, on the contrary, was it the growth of GDP that drove the production of electricity well into the 21st century? The purpose of this paper is to answer this question. Design/methodology/approach A cointegration approach based on the studies conducted by Pesaran and Shin (1999) and Pesaran et al. (2001) is applied, as it is suitable for short data series like those used in this paper. Findings The results of this paper allow us to conclude that electricity production boosted economic growth in Spain during the period under study, confirming the growth hypothesis. Research limitations/implications The results of this paper should be interpreted with caution, as electricity today amounts to less than a quarter of the total amount of energy used in Spain. It was not possible to incorporate other inputs to the production function (such as other energy inputs, technological or human capital), but the methodology used avoids the problems of omitted variables and of autocorrelation. Practical implications The results show that a small economy with limited resources, such as the Spanish one, is more vulnerable to energy shocks than other energy-sufficient economies. As Spain is a country with high energy dependence from abroad, the government must first ensure the electricity supply. Increased availability and access to different sources of electricity will improve the outlook for the Spanish economy. Conversely, a shortage in supply of electricity will constrain the regular pace of economic growth. Social implications Spain should investigate and explore more efficient and cost-effective sources of energy, in particular the renewable energies, as traditional energy sources will be scarce before long. Originality/value This paper differs from previous ones carried out for Spain in several aspects: it considers a broader period of time, from 1958 to 2015; the relationships between electricity production and GDP are analysed for the first time in a neo-classical production function where electricity, capital and employment are considered as separate factors; and a cointegration approach based on the studies conducted by Pesaran and Shin (1999) and Pesaran et al. (2001) is applied, as it is suitable for short data series like those used in this paper.

show abstract

Section: Economic Growth or Electricitymentioning

confidence: 70%

Economic growth or electricity, what came first in Spain after 1958?

Villarroya

Sanz-Villarroya

Pérez

2020

AEA

View full text Add to dashboard Cite

show abstract

“…Previous studies have explored the nexus between electricity consumption and GDP by only examining empirical relationships without developing an underlying theoretical basis for this relationship (Ghosh, 2002;Ikegami & Wang, 2016;. Although some empirical researchers have examined Granger causality between electricity consumption and GDP, they do not provide an underlying theoretical explanation for the logic of such a linkage between economic output and electricity consumption.…”

Section: Discussionmentioning

confidence: 99%

Optimal dynamic electricity consumption function estimation: an institutional experimental evidence from Guangzhou, China (1949-2016)

Collins

2021

Economic Research-Ekonomska Istraživanja

View full text Add to dashboard Cite

This research demonstrates from a dynamic optimal perspective that electricity consumption for a metropolitan area is a function of economic output, electricity consumption habits, and electricity demand management reform. The empirical results include: (1) an unidirectional Granger causality exists linking economic output to electricity consumption; (2) given electricity consumption habits under the context of the electricity demand management reform, an economic output increase of 1% results in the increase of electricity consumption by 0.22%, and (3), after demand management has been implemented, economic output continues to increase electricity consumption, but at a lower rate than prior to reform. These empirical results imply that the 'conservation hypothesis' is upheld over the long-run at the regional level in Guangzhou from 1949 to 2016.

show abstract

“…In 2015, per capita electricity consumption was 746 kWh [2]. Since per capita electricity consumption has a positive relation with GDP per capita (e.g., [4][5][6]), it can be used as a standard for judging the stage of economic development. Most countries with a GDP per capita of more than US$ 10,000 have an electricity consumption of more than 4500 kWh per capita [7,8].…”

Section: Introductionmentioning

confidence: 99%

Electricity Generation in India: Present State, Future Outlook and Policy Implications

2019

View full text Add to dashboard Cite

India is one of the fastest developing countries in the world. To sustain this growth, energy and electricity demands will increase. In 2015, of the 1337 TWh produced, 916 TWh were from fossil fuels. We prepared several models of electricity demand from 2015 to 2030, based on publicly available datasets and trends. Models were tested on data from previous years and adjusted accordingly. From several scenarios, we decided to introduce two possibilities, i.e., a scenario using high energy savings in all sectors, and a scenario counting on a high industrial growth not supported by an equal increase of electricity savings. For both cases we prepared models for extreme situations: (1) where coal- and lignite-based power plants are preferred after slow-down of a renewable energy boom, and (2) with high utilization of renewable energy supported by natural gas and nuclear energy. With GDP and population increasing at the same rate as in previous years, the unambiguous result in all scenarios is a 2 to 3-fold increase of the electricity demand by 2030. On the electricity production side, all scenarios stress the role of coal, renewables and nuclear sources. Both energy and climate policies should be prepared for such a development in advance.

show abstract

The long-run causal relationship between electricity consumption and real GDP: Evidence from Japan and Germany

Cited by 37 publications

References 18 publications

Economic growth or electricity, what came first in Spain after 1958?

Economic growth or electricity, what came first in Spain after 1958?

Optimal dynamic electricity consumption function estimation: an institutional experimental evidence from Guangzhou, China (1949-2016)

Electricity Generation in India: Present State, Future Outlook and Policy Implications

Contact Info

Product

Resources

About