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Electricity Consumption and Economic Growth: A Panel Data Approach for Brazil, Russia, India, China and South Africa Countries

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  • Hlalefang Khobai

    (Department of Economics, Nelson Mandela University, South Africa)

Abstract

This paper serves to investigate the causal relationship between electricity consumption and economic growth in the BRICS countries during the period 1990 2014. Carbon dioxide emissions and urbanisation were included as additional variables to form a multivariate framework. The Kao panel co-integration and Johansen Fisher panel co-integration techniques are applied to analyse the co-integration relationship between the variables while the Vector Error Correction Model (VECM) Granger-causality test is used to estimate the causality relationship among the variables. The study s results reveal that there is a long run relationship between the variables. The research outcome further detected a unidirectional causality flowing from economic growth to electricity consumption in the long run in BRICS countries. So in the light of determination of the study, the policy implication is that a significant transformation of low carbon technologies such as renewable energy should be implemented to curb the emissions and sustain economic growth and development.

Suggested Citation

  • Hlalefang Khobai, 2018. "Electricity Consumption and Economic Growth: A Panel Data Approach for Brazil, Russia, India, China and South Africa Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 8(3), pages 283-289.
    • Handle: RePEc:eco:journ2:2018-03-33
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    References listed on IDEAS

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    Cited by:

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    2. Nyiko Worship Hlongwane & Olebogeng David Daw, 2022. "Testing Environmental Kuznets Curve Hold in South Africa: An Econometric Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 12(3), pages 385-394, May.
    3. Mohamed A. Alshami & Ariba Sabah, 2020. "The Strategic Importance of Energy Consumption to Economic Growth: Evidence from the UAE," International Journal of Energy Economics and Policy, Econjournals, vol. 10(1), pages 114-119.
    4. Teles Huo & Miguel St. Aubyn, 2022. "Electricity, Exergy and Economic Growth in Mozambique," International Journal of Energy Economics and Policy, Econjournals, vol. 12(4), pages 439-446, July.
    5. Katleho Makatjane, 2022. "Forecasting Uncertainty Intervals for Return Period of Extreme Daily Electricity Consumption," International Journal of Energy Economics and Policy, Econjournals, vol. 12(4), pages 217-225, July.
    6. Hlongwane, Nyiko Worship & Daw, Olebogeng David, 2022. "Electricity consumption and population growth in South Africa: A panel approach," MPRA Paper 113828, University Library of Munich, Germany.
    7. Teles Huo & Miguel St. Aubyn, 2021. "Electricity, Exergy And Economic Growth In Mozambique, 1971 – 2014," Working Papers REM 2021/0170, ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa.

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    More about this item

    Keywords

    Energy consumption; Economic growth; Causality; BRICS countries;
    All these keywords.

    JEL classification:

    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
    • Q47 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy Forecasting
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development

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