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Non-linear dynamics of electric power losses, electricity consumption, and GDP in Jamaica

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  • Das, Anupam
  • McFarlane, Adian

Abstract

We examine the relationship between electric power losses, electric power consumption, and GDP in Jamaica for the period 1971 to 2014 accounting for the non-linear growth in GDP. There are two key findings. First, there are cointegrating relationships between the energy variables and GDP. In the long run, a positive shock to electric power losses has a negative impact on GDP, but one to electric power consumption has a positive impact that peters out over time. Second, in the short run, the growth in the energy variables Granger cause GDP growth. We discuss the implications of these findings.

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  • Das, Anupam & McFarlane, Adian, 2019. "Non-linear dynamics of electric power losses, electricity consumption, and GDP in Jamaica," Energy Economics, Elsevier, vol. 84(C).
    • Handle: RePEc:eee:eneeco:v:84:y:2019:i:c:s0140988319303251
    DOI: 10.1016/j.eneco.2019.104530
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    Cited by:

    1. Brown, Leanora & McFarlane, Adian & Campbell, Kaycea & Das, Anupam, 2020. "Remittances and CO2 emissions in Jamaica: An asymmetric modified environmental kuznets curve," The Journal of Economic Asymmetries, Elsevier, vol. 22(C).
    2. Adekoya, Oluwasegun B. & Ogunnusi, Timilehin P. & Oliyide, Johnson A., 2021. "Sector-by-sector non-renewable energy consumption shocks and manufacturing performance in the U.S.: Analysis of the asymmetric issue with nonlinear ARDL and the role of structural breaks," Energy, Elsevier, vol. 222(C).
    3. Esmaeili, Parisa & Rafei, Meysam, 2021. "Dynamics analysis of factors affecting electricity consumption fluctuations based on economic conditions: Application of SVAR and TVP-VAR models," Energy, Elsevier, vol. 226(C).
    4. Zhang, Jinjun & Abbasi, Kashif Raza & Hussain, Khadim & Akram, Sabahat & Alvarado, Rafael & Almulhim, Abdulaziz I., 2022. "Another perspective towards energy consumption factors in Pakistan: Fresh policy insights from novel methodological framework," Energy, Elsevier, vol. 249(C).
    5. Abbasi, Kashif Raza & Shahbaz, Muhammad & Jiao, Zhilun & Tufail, Muhammad, 2021. "How energy consumption, industrial growth, urbanization, and CO2 emissions affect economic growth in Pakistan? A novel dynamic ARDL simulations approach," Energy, Elsevier, vol. 221(C).
    6. Guo, Dongmei & Li, Qin & Liu, Peng & Shi, Xunpeng & Yu, Jian, 2023. "Power shortage and firm performance: Evidence from a Chinese city power shortage index," Energy Economics, Elsevier, vol. 119(C).
    7. Thomas, Douglas & Fung, Juan, 2022. "Measuring downstream supply chain losses due to power disturbances," Energy Economics, Elsevier, vol. 114(C).
    8. Farshchian, Ghazaleh & Darestani, Soroush Avakh & Hamidi, Naser, 2021. "Developing a decision-making dashboard for power losses attributes of Iran’s electricity distribution network," Energy, Elsevier, vol. 216(C).

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    More about this item

    Keywords

    Electricity consumption; electricity power losses; Jamaica; ARDL; VECM; Granger;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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