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The economic growth and electricity consumption nexus: Evidence from Mauritius

Author

Listed:
  • Neeliah Harris

    (Sustainable Agri-Food Systems)

  • Deenapanray Prakash

    (Ecological Living In Action)

Abstract

This paper has tried to unfold the causal relationship between electricity consumption and real economic growth in Mauritius using co-integration models applied to time series data between 1961 and 2011. The results unambiguously show that there is a short-term unidirectional causality from electricity consumption towards economic growth. Therefore GDP growth depends on electricity consumption. The implications of this distinct causal relationship between the two variables on the formulation of policies for the power sector are discussed.

Suggested Citation

  • Neeliah Harris & Deenapanray Prakash, 2012. "The economic growth and electricity consumption nexus: Evidence from Mauritius," Economics Bulletin, AccessEcon, vol. 32(4), pages 2930-2943.
    • Handle: RePEc:ebl:ecbull:eb-12-00514
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    References listed on IDEAS

    as
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    Cited by:

    1. Adeyemi A. Ogundipe & Opeyemi Akinyemi & Oluwatomisin M. Ogundipe, 2016. "Electricity Consumption and Economic Development in Nigeria," International Journal of Energy Economics and Policy, Econjournals, vol. 6(1), pages 134-143.

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    More about this item

    Keywords

    Development; Electricity consumption; Granger causality; Cointegration.;
    All these keywords.

    JEL classification:

    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling

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