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Sectoral Electricity Consumption And Economic Growth In India: An Empirical Study From 1970 To 2016

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  • Jaganath BEHERA

Abstract

The present study investigated the sectoral electricity consumption and economic growth in India from 1970 to 2016. The empirical finding shows that there is a long-run equilibrium relationship among the variables. The Toda & Yamamoto Granger causality result reveals that there is unidirectional causality from electricity consumption of agriculture sector to domestic sector, commercial sector to domestic sector, industrial sector to commercial sector, and total energy consumption to the domestic sector. The policy implication of the analysis suggests that at the sectoral levels, electricity consumption is necessary to increase the productivity in the agriculture, commercial and industrial sectors in India as these sectors are highly electricity-based compared to other sectors. However, to avoid the supply crunch of electricity India should afford an adequate supply of electricity to the required sectors.

Suggested Citation

  • Jaganath BEHERA, 2023. "Sectoral Electricity Consumption And Economic Growth In India: An Empirical Study From 1970 To 2016," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 23(2), pages 127-152.
    • Handle: RePEc:eaa:aeinde:v:23:y:2023:i:2_7
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    More about this item

    Keywords

    Energy; Economic Growth; Cointegration; Toda & Yamamoto; India; Error Correction.;
    All these keywords.

    JEL classification:

    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

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