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Electricity consumption and economic growth across Australian states and territories

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  • Sefa Awaworyi Churchill
  • Kris Ivanovski

Abstract

This study investigates the long-run and short-run dynamics between electricity consumption (along with traditional inputs such as labour and capital) on economic output for a panel of seven Australian states/territories over the period 1990 to 2015. Our panel results suggest that electricity consumption is positively related to gross state product in both the long-run and short-run, and the growth effect also extend to traditional inputs such as capital and labour. However, the state/territory-specific results identify both positive and negative relationships between electricity consumption and gross state product. Furthermore, we find evidence of bi-directional causality between state economic growth and capital, labour and electricity consumption, highlighting the importance of traditional inputs as well as electricity consumption in the growth process.

Suggested Citation

  • Sefa Awaworyi Churchill & Kris Ivanovski, 2020. "Electricity consumption and economic growth across Australian states and territories," Applied Economics, Taylor & Francis Journals, vol. 52(8), pages 866-878, February.
  • Handle: RePEc:taf:applec:v:52:y:2020:i:8:p:866-878
    DOI: 10.1080/00036846.2019.1659932
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    Cited by:

    1. Hamizah Abdul Halim & Nor Hidayah Harun & Mohd Shahidan Shaari & Noorazeela Zainol Abidin, 2020. "The Effects of Capital, Labor and Electricity Consumption on Economic Growth in Malaysia," International Journal of Energy Economics and Policy, Econjournals, vol. 10(6), pages 305-309.
    2. Mohammad Mafizur Rahman & Istihak Rayhan & Nahid Sultana, 2023. "How Does Electricity Affect Economic Growth? Examining the Role of Government Policy to Selected Four South Asian Countries," Energies, MDPI, vol. 16(3), pages 1-17, February.
    3. Sedai, Ashish Kumar & Jamasb, Tooraj & Nepal, Rabindra & Miller, Ray, 2021. "Electrification and welfare for the marginalized: Evidence from India," Energy Economics, Elsevier, vol. 102(C).
    4. Pandelara, Diego & Kristjanpoller, Werner & Michell, Kevin & Minutolo, Marcel C., 2022. "A fuzzy regression causality approach to analyze relationship between electrical consumption and GDP," Energy, Elsevier, vol. 239(PE).
    5. Zhongdong Yu & Wei Liu & Liming Chen & Serkan Eti & Hasan Dinçer & Serhat Yüksel, 2019. "The Effects of Electricity Production on Industrial Development and Sustainable Economic Growth: A VAR Analysis for BRICS Countries," Sustainability, MDPI, vol. 11(21), pages 1-13, October.
    6. Fang, Debin & Hao, Peng & Yu, Qian & Wang, Jiancheng, 2020. "The impacts of electricity consumption in China's key economic regions," Applied Energy, Elsevier, vol. 267(C).
    7. Mark Agyei-Sakyi & Yunfei Shao & Oppong Amos & Armah Marymargaret, 2021. "Determinants of Electricity Consumption and Volatility-Driven Innovative Roadmaps to One Hundred Percent Renewables for Top Consuming Nations in Africa," Sustainability, MDPI, vol. 13(11), pages 1-22, June.
    8. Khalid Eltayeb Elfaki & Nurul Anwar & Arintoko Arintoko, 2020. "Do Electricity Consumption and International Trade Openness Boost Economic Growth in Sudan? Empirical Analysis from Bounds Test to Cointegration Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 10(4), pages 9-16.
    9. Oluwarotimi Ayokunnu Owolabi & Asa-Ruth Oboku Oku & Abidemi Alejo & Toun Ogunbiyi & Jeremiah Ifeanyi Ubah, 2021. "Access to Electricity, Information and Communications Technology (ICT), and Financial Development: Evidence From West Africa," International Journal of Energy Economics and Policy, Econjournals, vol. 11(2), pages 247-259.
    10. Neringa Vilkaite-Vaitone & Ilona Skackauskiene, 2020. "Service Customer Loyalty: An Evaluation Based on Loyalty Factors," Sustainability, MDPI, vol. 12(6), pages 1-20, March.
    11. Melyana R. Pugu & Yanyan M. Yani & Wawan B. Dharmawan & Velix V. Wanggai & Zuhaina Zakaria, 2021. "Electricity Production, Energy Consumption and Capital Formation: Analyzing the Footprints in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 11(6), pages 145-151.

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