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Economic growth and electricity consumption in former Soviet Republics

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  • Bildirici, Melike E.
  • Kayıkçı, Fazıl

Abstract

This study estimates the causal relationship between electricity consumption and economic growth with annual data for the Commonwealth Independent States countries in three groups of income levels. Empirical results reveal that electricity consumption and GDP are cointegrated for all these countries. Furthermore, there is a unidirectional causality from electricity consumption to GDP for all groups in the long run. Effect of electricity consumption on the GDP is negative for the second group of countries which supports the energy conservation policies, whereas it is positive for the first and third group of countries which supports the growth hypothesis.

Suggested Citation

  • Bildirici, Melike E. & Kayıkçı, Fazıl, 2012. "Economic growth and electricity consumption in former Soviet Republics," Energy Economics, Elsevier, vol. 34(3), pages 747-753.
    • Handle: RePEc:eee:eneeco:v:34:y:2012:i:3:p:747-753
    DOI: 10.1016/j.eneco.2012.02.010
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    More about this item

    Keywords

    Growth; Development; Electricity consumption; Panel ARDL; Pedroni cointegration; Granger causality;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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