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Causality between Electricity Consumption & Economic growth : Empirical Evidence from India

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  • Gupta, Geetu
  • Sahu, Naresh Chandra
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    Abstract

    In this study ,an attempt has been made to investigate causality between electricity consumption and economic growth in India by adopting Granger Engel causality model for 1960-2006 period .Test results shows that electricity consumption has positive effect on economic growth. The paper support for the reforms in power sector and indicates that electricity act as a catalyst in realizing various social and economic goals.

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    File URL: http://mpra.ub.uni-muenchen.de/22942/
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    Bibliographic Info

    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 22942.

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    Date of creation: 08 Oct 2009
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    Handle: RePEc:pra:mprapa:22942

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    Keywords: Electricity consumption; Economic growth ; Granger Engel causality; India .;

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    1. Asafu-Adjaye, John, 1999. "The relationship between energy consumption, energy prices and economic growth: Time series evidence from Asian developing countries," 1999 Conference (43th), January 20-22, 1999, Christchurch, New Zealand, Australian Agricultural and Resource Economics Society 123754, Australian Agricultural and Resource Economics Society.
    2. David I. Stern & Cutler J. Cleveland, 2004. "Energy and Economic Growth," Rensselaer Working Papers in Economics, Rensselaer Polytechnic Institute, Department of Economics 0410, Rensselaer Polytechnic Institute, Department of Economics.
    3. Morimoto, Risako & Hope, Chris, 2004. "The impact of electricity supply on economic growth in Sri Lanka," Energy Economics, Elsevier, Elsevier, vol. 26(1), pages 77-85, January.
    4. Ghosh, Sajal, 2002. "Electricity consumption and economic growth in India," Energy Policy, Elsevier, Elsevier, vol. 30(2), pages 125-129, January.
    5. Ciarreta Antuñano, Aitor & Zárraga Alonso, Ainhoa, 2007. "Electricity consumption and economic growth: evidence from Spain," BILTOKI, Universidad del País Vasco - Departamento de Economía Aplicada III (Econometría y Estadística) 2007-01, Universidad del País Vasco - Departamento de Economía Aplicada III (Econometría y Estadística).
    6. Dickey, David A & Fuller, Wayne A, 1981. "Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root," Econometrica, Econometric Society, Econometric Society, vol. 49(4), pages 1057-72, June.
    7. Altinay, Galip & Karagol, Erdal, 2005. "Electricity consumption and economic growth: Evidence from Turkey," Energy Economics, Elsevier, Elsevier, vol. 27(6), pages 849-856, November.
    8. DeJong, David N, et al, 1992. "Integration versus Trend Stationarity in Time Series," Econometrica, Econometric Society, Econometric Society, vol. 60(2), pages 423-33, March.
    9. Kamal Raj Dhungel, 2008. "A causal relationship between energy consumption and economic growth in Nepal," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 15(1), pages 137-150, June.
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    Cited by:
    1. Abbas, Faisal & Choudhury, Nirmalya, 2013. "Electricity consumption-economic growth Nexus: An aggregated and disaggregated causality analysis in India and Pakistan," Journal of Policy Modeling, Elsevier, Elsevier, vol. 35(4), pages 538-553.
    2. Shahbaz, Muhammad & Mutascu, Mihai & Tiwari, Aviral Kumar, 2012. "Revisiting the Relationship between Electricity Consumption, Capital and Economic Growth: Cointegration and Causality Analysis in Romania," Journal for Economic Forecasting, Institute for Economic Forecasting, Institute for Economic Forecasting, vol. 0(3), pages 97-120, September.

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