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The Role of Information Communication Technology and Economic Growth in Recent Electricity Demand: Fresh Evidence from Combine Cointegration Approach in UAE

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  • Shahbaz, Muhammad
  • Sbia, Rashid
  • HAMDI, Helmi
  • Ur Rehman, Ijaz

Abstract

This paper investigates relationship between information communication technology (ICT), economic growth and electricity consumption using data of UAE over the period of 1975-2011.We have tested the unit properties of variables and the Bayer and Hanck combined cointegration approach for long run relationship. The innovative accounting approach is applied to test the robustness of the VECM Granger causality findings. Our empirical results confirm the existence of cointegration between the series. We find that ICT adds in electricity demand but electricity prices lower it. Income growth increases electricity consumption. The non-linear relationship between ICT and electricity consumption is an Inverted U-shaped. The causality results reveal that ICT and electricity prices Granger cause electricity demand. The feedback effect exists between economic growth and electricity consumption

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 53226.

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Date of creation: 16 Jan 2014
Date of revision: 25 Jan 2014
Handle: RePEc:pra:mprapa:53226

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Keywords: ICT; Growth; Electricity; UAE;

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Cited by:
  1. Ahmed Atil & Amine Lahiani & Duc Khuong Nguyen, 2014. "Asymmetric and nonlinear passthrough of crude oil prices to gasoline and natural gas prices," Working Papers, Department of Research, Ipag Business School 2014-569, Department of Research, Ipag Business School.
  2. Bouoiyour, Jamal & Selmi, Refk & Shahbaz, Muhammad, 2014. "The Electricity Consumption in a Rentier State: Do Institutions Matter?," MPRA Paper 55412, University Library of Munich, Germany.
  3. Omri, Anis & Nguyen, Duc Khuong, 2014. "On the determinants of renewable energy consumption: International evidence," Energy, Elsevier, Elsevier, vol. 72(C), pages 554-560.
  4. Mohamed Arouri & Christophe Rault & Frédéric Teulon, 2014. "Economic policy uncertainty, oil price shocks and GCC stock markets," Economics Bulletin, AccessEcon, vol. 34(3), pages 1822-1834.
  5. Walid Chkili & Chaker Aloui & Duc Khuong Nguyen, 2014. "Instabilities in the relationships and hedging strategies between crude oil and US stock markets: do long memory and asymmetry matter?," Working Papers, Department of Research, Ipag Business School 2014-549, Department of Research, Ipag Business School.
  6. Zied Ftiti & Aviral Tiwari & Amél Belanès, 2014. "Tests of Financial Market Contagion- Evolutionary Cospectral Analysis V.S. Wavelet Analysis," Working Papers, Department of Research, Ipag Business School 2014-062, Department of Research, Ipag Business School.
  7. Ihtisham Abdul Malik & Ghamz-e-Ali Siyal & Alias Bin Abdullah & Arif Alam & Khalid Zaman, 2014. "Turn on the Lights: Macroeconomic Factors Affecting Renewable in Pakistan," Working Papers, Department of Research, Ipag Business School 2014-518, Department of Research, Ipag Business School.

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