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The Relationship between Electricity Consumption and Economic Growth: Evidence from Azerbaijan

Author

Listed:
  • Sugra Ingilab Humbatova

    (Department of World Economy, Azerbaijan State University of Economics (UNEC), International Center for Graduate Education, Economy and Management Baku Engineering University (BEU),)

  • Fariz Saleh Ahmadov

    (Department of Economics and Business Administration, International Center for Graduate Education, Azerbaijan State University of Economics (UNEC), Istiqlaliyyat Str. 6, Baku, AZ-1001, Azerbaijan,)

  • lgar Zulfigar Seyfullayev

    (Department of Industry Economy and Management, Azerbaijan State University of Economics (UNEC), International Center for Graduate Education, Economy and Management Azerbaijan Technical University,)

  • Natig Gadim-Ogli Hajiyev

    (Department Regulation of Economy, Azerbaijan State University of Economics (UNEC), AZ-1001, Baku, Azerbaijan.)

Abstract

Research examines the relations between GDP in Manat and Dollar and total electric energy consumption (1995-2017) for the last 22 years in the Republic of Azerbaijan. Besides, the relations between the electric energy consumption and the growth of GDP in these sectors were analysed. Autoregressive distributed lag model was used as a research methodology. Stationary tests of variables (ADF, PP, and KPSS) and Pairwise Granger Causality Tests were done. Stability of models was examined. Eviews_9 econometric software program was used to establish graphics and do calculations. Having analysed the research, there is a positive correlation not only in GDP and electric energy consumption but also electric energy consumption and GDP in different sectors of economy. We recommend to save electric energy.

Suggested Citation

  • Sugra Ingilab Humbatova & Fariz Saleh Ahmadov & lgar Zulfigar Seyfullayev & Natig Gadim-Ogli Hajiyev, 2020. "The Relationship between Electricity Consumption and Economic Growth: Evidence from Azerbaijan," International Journal of Energy Economics and Policy, Econjournals, vol. 10(1), pages 436-455.
    • Handle: RePEc:eco:journ2:2020-01-55
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    Cited by:

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    2. Nurkhodzha Akbulaev, 2023. "Analysis of Renewable Energy, Foreign Direct Investment, and CO2 Relationship: Evidence from France, Germany, and Italy," International Journal of Energy Economics and Policy, Econjournals, vol. 13(5), pages 645-657, September.
    3. Shafa Guliyeva, 2023. "Analysis of the effect of Energy Prices on Stock Indexes During the Epidemic Crisis," International Journal of Energy Economics and Policy, Econjournals, vol. 13(2), pages 526-536, March.
    4. Buyung Romadhoni & Akhmad Akhmad, 2020. "Household Electricity Demand in South Sulawesi, Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 10(4), pages 229-233.
    5. Nurkhodzha Akbulaev & Elshan Mammadli & Gadir Bayramli, 2022. "The Effect of Energy Prices on Stock Indices in the Period of COVID-19: Evidence from Russia, Turkey, Brazil, and India," International Journal of Energy Economics and Policy, Econjournals, vol. 12(3), pages 262-269, May.
    6. Nurkhodzha Akbulaev & Imangulu Muradzada & Ziyadhan Hasanov, 2023. "Relationship between Oil Prices and Russia Exchange Indices: Analysis of Frequency Causality," International Journal of Energy Economics and Policy, Econjournals, vol. 13(5), pages 607-615, September.

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    More about this item

    Keywords

    Electric Energy Consumption; GDP Growth; Autoregressive Distributed Lag;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • B2 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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