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Assessment of the Effects of Electricity consumption on the Economy using Granger Causality: Zambian Case

Author

Listed:
  • Douglas KUNDA

    (Department of Computer Science, School of Science Engineering and Technology, Mulungushi University, Zambia)

  • Mumbi CHISIMBA

    (Department of Computer Science, School of Science Engineering and Technology, Mulungushi University, Zambia)

Abstract

Electricity consumption in developing countries such as Zambia continues to grow as the economy grows. As a result, it is important to study how the rate of electricity consumption affects the economy of a country. For this study, the economic variables that were used are the Gross Domestic Product and the Consumer Price index. The results from this study are that there is a unidirectional relationship between electricity consumption and the consumer price index where the rate of electricity consumption Granger causes the consumer price index. The study also showed that there is no causal relationship between electricity and GDP and that there was no causal relationship between electricity consumption and the Consumer Price Index.

Suggested Citation

  • Douglas KUNDA & Mumbi CHISIMBA, 2017. "Assessment of the Effects of Electricity consumption on the Economy using Granger Causality: Zambian Case," Database Systems Journal, Academy of Economic Studies - Bucharest, Romania, vol. 8(2), pages 44-56, August.
    • Handle: RePEc:aes:dbjour:v:8:y:2017:i:2:p:44-56
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