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Electricity consumption and economic growth: evidence from Pakistan

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  • Zahid Ashraf
  • Attiya Yasmin Javid
  • Muhammad Javid

Abstract

The objective of this study is to examine the long run relationship between real GDP per capita and electricity consumption for Pakistan over the period 1971 to 2010. The results reveal that there is unidirectional causality from electricity consumption to real GDP per capita. The findings of the study also show that there is long run relationship between real GDP per capita and electricity consumption. The results indicate a unidirectional causal relationship from real economic activity to electricity consumption at aggregate level indicating that economic development stimulates greater demand for electricity in the long-run.

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File URL: http://www.unioviedo.es/reunido/index.php/EBL/article/view/9396
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Bibliographic Info

Article provided by Oviedo University Press in its journal Economics and Business Letters.

Volume (Year): 2 (2013)
Issue (Month): 1 ()
Pages:

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Handle: RePEc:ove:journl:aid:9396

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  1. Yoo, Seung-Hoon, 2005. "Electricity consumption and economic growth: evidence from Korea," Energy Policy, Elsevier, vol. 33(12), pages 1627-1632, August.
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  5. Wolde-Rufael, Yemane, 2004. "Disaggregated industrial energy consumption and GDP: the case of Shanghai, 1952-1999," Energy Economics, Elsevier, vol. 26(1), pages 69-75, January.
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  7. 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.
  8. Morimoto, Risako & Hope, Chris, 2004. "The impact of electricity supply on economic growth in Sri Lanka," Energy Economics, Elsevier, vol. 26(1), pages 77-85, January.
  9. Ghosh, Sajal, 2002. "Electricity consumption and economic growth in India," Energy Policy, Elsevier, vol. 30(2), pages 125-129, January.
  10. Jamil, Faisal & Ahmad, Eatzaz, 2010. "The relationship between electricity consumption, electricity prices and GDP in Pakistan," Energy Policy, Elsevier, vol. 38(10), pages 6016-6025, October.
  11. Ferguson, Ross & Wilkinson, William & Hill, Robert, 2000. "Electricity use and economic development," Energy Policy, Elsevier, vol. 28(13), pages 923-934, November.
  12. 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.
  13. Rehana Siddiqui, 2004. "Energy and Economic Growth in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 43(2), pages 175-200.
  14. Narayan, Paresh Kumar & Smyth, Russell, 2008. "Energy consumption and real GDP in G7 countries: New evidence from panel cointegration with structural breaks," Energy Economics, Elsevier, vol. 30(5), pages 2331-2341, September.
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