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Electricity consumption and Economic growth: A panel data approach to Brics countries

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  • Khobai, Hlalefang

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

  • Khobai, Hlalefang, 2017. "Electricity consumption and Economic growth: A panel data approach to Brics countries," MPRA Paper 82460, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:82460
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    Cited by:

    1. DRAMA Bedi Guy Herve, 2018. "Empirical Analysis and Forecast of Electricity Demand in West African Economic and Monetary Zone: Evidence from Panel ADRL Modelling," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 6(3), pages 257-273, September.
    2. Agnieszka Mazurek-Czarnecka & Ksymena Rosiek & Marcin Salamaga & Krzysztof Wąsowicz & Renata Żaba-Nieroda, 2022. "Study on Support Mechanisms for Renewable Energy Sources in Poland," Energies, MDPI, vol. 15(12), pages 1-38, June.

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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
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Z00 - Other Special Topics - - General - - - General

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