Income Elasticities Of Electric Power Consumption: Evidence From African Countries, 1971-2002
The paper examines the relationship between electric power consumption and real GDP per capita for 16 African countries over the period 1971-2002. Bi-directional causality is found and all tests support the existence of a long run relationship. The short run income elasticity of electric power consumption (YEEPC) is estimated to be 0.39 while the long run elasticities are 0.70 and 0.76 when employing the FMOLS and DOLS respectively. Additionally, YEEPC is found to be pro-cyclical.
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Volume (Year): 7 (2007)
Issue (Month): 2 ()
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