Linear and nonlinear causality between sectoral electricity consumption and economic growth: Evidence from Taiwan
AbstractThis study investigates the linear and nonlinear causality between the total electricity consumption (TEC) and real gross domestic production (RGDP). Unlike previous literature, we solve the undetermined relation between RGDP and electricity consumption by classifying TEC into industrial sector consumption (ISC) and residential sector consumption (RSC) as well as investigating how TEC, ISC, and RSC influence Taiwan's RGDP. By using the Granger's linear causality test, it is shown that (i) there is a bidirectional causality among TEC, ISC, and RGDP, but a neutrality between RSC and RGDP with regard to the linear causality and (ii) there is still a bidirectional causality between TEC and RGDP, but a unidirectional causality between RSC and RGDP with regard to the nonlinear causality. On the basis of (i) and (ii), we suggest that the electricity policy formulators loosen the restriction on ISC and limit RSC in order to achieve the goal of economic growth.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Energy Policy.
Volume (Year): 38 (2010)
Issue (Month): 11 (November)
Contact details of provider:
Web page: http://www.elsevier.com/locate/enpol
Electricity consumption Causality Economic growth;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Christopher A. Sims, 1980.
"Comparison of Interwar and Postwar Business Cycles: Monetarism Reconsidered,"
NBER Working Papers
0430, National Bureau of Economic Research, Inc.
- Sims, Christopher A, 1980. "Comparison of Interwar and Postwar Business Cycles: Monetarism Reconsidered," American Economic Review, American Economic Association, vol. 70(2), pages 250-57, May.
- Hiemstra, Craig & Jones, Jonathan D, 1994. " Testing for Linear and Nonlinear Granger Causality in the Stock Price-Volume Relation," Journal of Finance, American Finance Association, vol. 49(5), pages 1639-64, December.
- Ghosh, Sajal, 2002. "Electricity consumption and economic growth in India," Energy Policy, Elsevier, vol. 30(2), pages 125-129, January.
- Yang, Ming, 2010. "Energy efficiency improving opportunities in a large Chinese shoe-making enterprise," Energy Policy, Elsevier, vol. 38(1), pages 452-462, January.
- Narayan, Paresh Kumar & Smyth, Russell, 2005. "Electricity consumption, employment and real income in Australia evidence from multivariate Granger causality tests," Energy Policy, Elsevier, vol. 33(9), pages 1109-1116, June.
- Oikonomou, V. & Becchis, F. & Steg, L. & Russolillo, D., 2009. "Energy saving and energy efficiency concepts for policy making," Energy Policy, Elsevier, vol. 37(11), pages 4787-4796, November.
- Oh, Wankeun & Lee, Kihoon, 2004. "Causal relationship between energy consumption and GDP revisited: the case of Korea 1970-1999," Energy Economics, Elsevier, vol. 26(1), pages 51-59, January.
- Chiou-Wei, Song Zan & Chen, Ching-Fu & Zhu, Zhen, 2009.
"Economic growth and energy consumption revisited -- Evidence from linear and nonlinear Granger causality,"
Elsevier, vol. 31(2), pages 235-239, March.
- Chiou-Wei, Song Zan & Chen, Ching-Fu & Zhu, Zhen, 2008. "Economic growth and energy consumption revisited -- Evidence from linear and nonlinear Granger causality," Energy Economics, Elsevier, vol. 30(6), pages 3063-3076, November.
- Kumar Narayan, Paresh & Singh, Baljeet, 2007. "The electricity consumption and GDP nexus for the Fiji Islands," Energy Economics, Elsevier, vol. 29(6), pages 1141-1150, November.
- Elias, Arun Abraham, 2008. "Energy efficiency in New Zealand's residential sector: A systemic analysis," Energy Policy, Elsevier, vol. 36(9), pages 3278-3285, September.
- Shiu, Alice & Lam, Pun-Lee, 2004. "Electricity consumption and economic growth in China," Energy Policy, Elsevier, vol. 32(1), pages 47-54, January.
- Ho, Chun-Yu & Siu, Kam Wing, 2007.
"A dynamic equilibrium of electricity consumption and GDP in Hong Kong: An empirical investigation,"
Elsevier, vol. 35(4), pages 2507-2513, April.
- Chun-Yu Ho & Kam Wing Siu, 2006. "A Dynamic Equilibrium of Electricity Consumption and GDP in Hong Kong: An Empirical Investigation," Boston University - Department of Economics - Working Papers Series WP2006-049, Boston University - Department of Economics.
- Lee, Chien-Chiang & Chang, Chun-Ping, 2005. "Structural breaks, energy consumption, and economic growth revisited: Evidence from Taiwan," Energy Economics, Elsevier, vol. 27(6), pages 857-872, November.
- Yoo, S.-H., 2006. "The causal relationship between electricity consumption and economic growth in the ASEAN countries," Energy Policy, Elsevier, vol. 34(18), pages 3573-3582, December.
- Jumbe, Charles B. L., 2004. "Cointegration and causality between electricity consumption and GDP: empirical evidence from Malawi," Energy Economics, Elsevier, vol. 26(1), pages 61-68, January.
- Yoo, Seung-Hoon, 2005. "Electricity consumption and economic growth: evidence from Korea," Energy Policy, Elsevier, vol. 33(12), pages 1627-1632, August.
- Wolde-Rufael, Yemane, 2006. "Electricity consumption and economic growth: a time series experience for 17 African countries," Energy Policy, Elsevier, vol. 34(10), pages 1106-1114, July.
- Yang, Hao-Yen, 2000. "A note on the causal relationship between energy and GDP in Taiwan," Energy Economics, Elsevier, vol. 22(3), pages 309-317, June.
- Tolga Omay & Mubariz Hasanov & Nuri Uçar, 2012.
"Energy Consumption and Economic Growth: Evidence from Nonlinear Panel Cointegration and Causality Tests,"
Hacettepe University Department of Economics Working Papers
20130, Hacettepe University, Department of Economics.
- Omay, Tolga & Hasanov, Mübariz & Uçar, Nuri, 2014. "Energy consumption and economic growth: Evidence from nonlinear panel cointegration and causality tests," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 34(2), pages 36-55.
- Omay, Tolga & Hasanov, Mubariz & Ucar, Nuri, 2012. "Energy consumption and economic growth: evidence from nonlinear panel cointegration and causality tests," MPRA Paper 37653, University Library of Munich, Germany.
- Maria Pempetzoglou, 2014. "Electricity Consumption and Economic Growth: A Linear and Nonlinear Causality Investigation for Turkey," International Journal of Energy Economics and Policy, Econjournals, vol. 4(2), pages 263-273.
- Nazlioglu, Saban, 2011. "World oil and agricultural commodity prices: Evidence from nonlinear causality," Energy Policy, Elsevier, vol. 39(5), pages 2935-2943, May.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.