IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2022-06-9.html
   My bibliography  Save this article

The Effect of Electricity Generation, Thermal Energy Production, Fixed Capital Investment, and Consumer Price Index on Economic Growth in Kazakhstan

Author

Listed:
  • Artur Bolganbayev

    (Khoja Akhmet Yassawi International Kazakh-Turkish University, Turkestan, Kazakstan)

  • Baltaim Sabenova

    (Peoples Friendship University named after Academician A. Kuatbekov, Shymkent, Kazakhstan.)

  • Gulmira Mombekova

    (Khoja Akhmet Yassawi International Kazakh-Turkish University, Turkestan, Kazakhstan,)

  • Gulnur Sultankhanova

    (Khoja Akhmet Yassawi International Kazakh-Turkish University, Turkestan, Kazakhstan,)

  • Tazhibayeva Raikhan Musamatovna

    (Khoja Akhmet Yassawi International Kazakh-Turkish University, Turkestan, Kazakhstan,)

Abstract

Many local and global factors affect the growth of national economies. Among these factors, energy production is one of the main sources of economic growth. This study examines the impact of energy production, especially electricity generation and thermal energy production, on economic growth in Kazakhstan. To provide a better explanation for the effect of energy production on economic growth, we also included fixed capital investment and consumer price index variables in our research model. Thus, economic growth data, fixed capital investments, consumer price index, electricity generation, and thermal energy production are determined as research variables. Research data were obtained from the databases of the World Bank and the National Bureau of Statistics of the Republic of the Agency of Strategic Planning and Reforms of Kazakhstan. The data range is from 2002 to 2020. The findings showed that fixed capital investment has the most dominant effect on economic growth. This is a natural result from a macroeconomic point of view. Another critical finding is that both electricity generation and fixed capital investments have a positive effect on economic growth. When the variable of the amount of electricity generated is included in the model, the explanatory power of the model increases from 85% to 90.7%. However, the effect of thermal energy production was found to be statistically insignificant. This insignificance is a research problem that needs to be analyzed in detail, taking into account the general energy production structure of Kazakhstan.

Suggested Citation

  • Artur Bolganbayev & Baltaim Sabenova & Gulmira Mombekova & Gulnur Sultankhanova & Tazhibayeva Raikhan Musamatovna, 2022. "The Effect of Electricity Generation, Thermal Energy Production, Fixed Capital Investment, and Consumer Price Index on Economic Growth in Kazakhstan," International Journal of Energy Economics and Policy, Econjournals, vol. 12(6), pages 67-72, November.
    • Handle: RePEc:eco:journ2:2022-06-9
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijeep/article/download/13557/6988
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijeep/article/view/13557
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Saleheen, Khan & Farooq Ahmed, Jam & Muhammad, Shahbaz, 2012. "Electricity Consumption and Economic Growth in Kazakhstan: Fresh Evidence from a Multivariate Framework Analysis," MPRA Paper 43460, University Library of Munich, Germany, revised 20 Dec 2012.
    2. Ahmad, Salman & Nadeem, Abid & Akhanova, Gulzhanat & Houghton, Tom & Muhammad-Sukki, Firdaus, 2017. "Multi-criteria evaluation of renewable and nuclear resources for electricity generation in Kazakhstan," Energy, Elsevier, vol. 141(C), pages 1880-1891.
    3. Dinmukhamed Kelesbayev & Kundyz Myrzabekkyzy & Artur Bolganbayev & Sabit Baimaganbetov, 2022. "The Impact of Oil Prices on the Stock Market and Real Exchange Rate: The Case of Kazakhstan," International Journal of Energy Economics and Policy, Econjournals, vol. 12(1), pages 163-168.
    4. Artur Bolganbayev & Kundyz Myrzabekkyzy & Sabit Baimaganbetov & Dinmukhamed Kelesbayev, 2021. "The Effect of Oil Prices on the Economic Growth of Oil Exporting Countries Bordering the Caspian Sea: Panel Data Analysis," International Journal of Energy Economics and Policy, Econjournals, vol. 11(6), pages 432-437.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Saule Bekzhanova & Gulzhanat Tayauova & Serik Akhanov & Gulnar B. Tuleshova & Artur Bolganbayev & Gulnara M. Moldogaziyeva, 2023. "The Relationship between Gold and Oil Prices and the Stock Market Returns of Kazakh Energy Companies: Comparison of the pre-COVID-19 and post-COVID-19 Periods," International Journal of Energy Economics and Policy, Econjournals, vol. 13(5), pages 8-14, September.
    2. Tazhikul Mashirova & Karlygash Tastanbekova & Murat Nurgabylov & Gulnar Lukhmanova & Kundyz Myrzabekkyzy, 2023. "Analysis of the Relationship between the Highest Price and the Trading Volume of the Energy Company Shares in Kazakhstan with Frequency Domain Causality Method," International Journal of Energy Economics and Policy, Econjournals, vol. 13(4), pages 22-27, July.
    3. Zhazira Taibek & Indira Kozhamkulova & Almas Kuralbayev & Bagdat K. Spanova & Kundyz Myrzabekkyzy, 2023. "Analysis of the Effect of Oil and Energy Production on Health and Education Expenditures in Kazakhstan with Autoregressive Distributed Lag Method," International Journal of Energy Economics and Policy, Econjournals, vol. 13(2), pages 215-221, March.
    4. Elmira Y. Zhussipova & Serikbay Saduakasuly Ydyrys & Ulmeken Makhanbetova & Gulzhanat Tayauova & Zhansulu Pirmanova, 2023. "The Relationship between the Highest Prices and Trading Volume in the Share Indices of Energy and Oil Companies in Kazakhstan," International Journal of Energy Economics and Policy, Econjournals, vol. 13(3), pages 28-35, May.
    5. Gaukhar Niyetalina & Elmira Balapanova & Almas Kuralbayev & Gulnar Lukhmanova & Artur Bolganbayev, 2023. "The Relationship of Energy Generation from Fossil Fuels, Low Carbon Resources, and Renewable Resources and Inflation within the Framework of Taylor s Rule: The Case of Kazakhstan," International Journal of Energy Economics and Policy, Econjournals, vol. 13(4), pages 9-15, July.
    6. Gulbakhram Sartbayeva & Elmira Balapanova & Darkhan Kozhanovich Mamytkanov & Lyazat Talimova & Gulnar Lukhmanova & Kundyz Myrzabekkyzy, 2023. "The Relationship between Energy Consumption (Renewable Energy), Economic Growth and Agro-Industrial Complex in Kazakhstan," International Journal of Energy Economics and Policy, Econjournals, vol. 13(6), pages 227-233, November.
    7. Baltaim Sabenova & Indira Baubekova & Gulmira Issayeva & Zarema Bigeldiyeva & Artur Bolganbayev, 2023. "Comparative Analysis of Volatility Structures of Stock Index and Energy Company Returns in Kazakhstan," International Journal of Energy Economics and Policy, Econjournals, vol. 13(2), pages 200-206, March.
    8. Zhanar Dyussembekova & Aina B. Aidarova & Elmira Balapanova & Dilmina Kuatova & Gaukhar Zh. Seitkhamzina & Artur Bolganbayev, 2023. "The Effect of Freight and Passenger Transportation and Energy Production on Economic Growth in the Framework of Macro-Economic Indicators: The Case of Kazakhstan," International Journal of Energy Economics and Policy, Econjournals, vol. 13(6), pages 74-80, November.
    9. Saken Ualikhanovich Abdibekov & Bauyrzhan Susaruly Kulbay & Yelena Evgenevna Gridneva & Gulnar Shaimardanovna Kaliakparova & Tolendi Aripbaevich Ashimbayev & Gulmira Amangeldiyevna Perneyeva, 2023. "The Relationship between the Share of Renewable Energy in Total Energy Consumption and Economic Growth: Kazakhstan and Turkiye Comparision," International Journal of Energy Economics and Policy, Econjournals, vol. 13(5), pages 24-30, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kundyz Myrzabekkyzy & Bektur Keneshbayev & Dina I. Razakova & Indira Kenzhebekova & Zhansulu Pirmanova, 2022. "Analysis of Causality Relationship Between the Economic Growth and the Energy Production and Technological Investments in Kazakhstan," International Journal of Energy Economics and Policy, Econjournals, vol. 12(6), pages 123-126, November.
    2. Dinmukhamed Kelesbayev & Kundyz Myrzabekkyzy & Artur Bolganbayev & Sabit Baimaganbetov, 2022. "The Effects of the Oil Price Shock on Inflation: The Case of Kazakhstan," International Journal of Energy Economics and Policy, Econjournals, vol. 12(3), pages 477-481, May.
    3. Mostafa Shaaban & Jürgen Scheffran & Jürgen Böhner & Mohamed S. Elsobki, 2018. "Sustainability Assessment of Electricity Generation Technologies in Egypt Using Multi-Criteria Decision Analysis," Energies, MDPI, vol. 11(5), pages 1-25, May.
    4. Assadi, Mohammad Reza & Ataebi, Melikasadat & Ataebi, Elmira sadat & Hasani, Aliakbar, 2022. "Prioritization of renewable energy resources based on sustainable management approach using simultaneous evaluation of criteria and alternatives: A case study on Iran's electricity industry," Renewable Energy, Elsevier, vol. 181(C), pages 820-832.
    5. Jun Dong & Dongxue Wang & Dongran Liu & Palidan Ainiwaer & Linpeng Nie, 2019. "Operation Health Assessment of Power Market Based on Improved Matter-Element Extension Cloud Model," Sustainability, MDPI, vol. 11(19), pages 1-25, October.
    6. Hlalefang Khobai & Gift Mugano & Pierre Le Roux, 2017. "The Impact of Electricity Price on Economic Growth in South Africa," International Journal of Energy Economics and Policy, Econjournals, vol. 7(1), pages 108-116.
    7. Wu, Yunna & Xu, Chuanbo & Zhang, Ting, 2018. "Evaluation of renewable power sources using a fuzzy MCDM based on cumulative prospect theory: A case in China," Energy, Elsevier, vol. 147(C), pages 1227-1239.
    8. Athanasios P. Vavatsikos & Efstratios Tsesmetzis & Georgios Koulinas & Dimitrios Koulouriotis, 2022. "A robust group decision making framework using fuzzy TOPSIS and Monte Carlo simulation for wind energy projects multicriteria evaluation," Operational Research, Springer, vol. 22(5), pages 6055-6073, November.
    9. Alanne, Kari & Cao, Sunliang, 2019. "An overview of the concept and technology of ubiquitous energy," Applied Energy, Elsevier, vol. 238(C), pages 284-302.
    10. Manuela Castañeda & Elkin I. Gutiérrez-Velásquez & Claudio E. Aguilar & Sergio Neves Monteiro & Andrés A. Amell & Henry A. Colorado, 2022. "Sustainability and Circular Economy Perspectives of Materials for Thermoelectric Modules," Sustainability, MDPI, vol. 14(10), pages 1-19, May.
    11. Cheng, Shulei & Wu, Yinyin & Chen, Hua & Chen, Jiandong & Song, Malin & Hou, Wenxuan, 2019. "Determinants of changes in electricity generation intensity among different power sectors," Energy Policy, Elsevier, vol. 130(C), pages 389-408.
    12. Vivek Agrawal & Nitin Seth & Jitendra Kumar Dixit, 2022. "A combined AHP–TOPSIS–DEMATEL approach for evaluating success factors of e-service quality: an experience from Indian banking industry," Electronic Commerce Research, Springer, vol. 22(3), pages 715-747, September.
    13. Mouraviev, Nikolai, 2021. "Energy security in Kazakhstan: The consumers’ perspective," Energy Policy, Elsevier, vol. 155(C).
    14. Cheng, Tianliang & Jiang, Jianhua & Wu, Xiaodong & Li, Xi & Xu, Mengxue & Deng, Zhonghua & Li, Jian, 2019. "Application oriented multiple-objective optimization, analysis and comparison of solid oxide fuel cell systems with different configurations," Applied Energy, Elsevier, vol. 235(C), pages 914-929.
    15. Yang, Zaoli & Ahmad, Salman & Bernardi, Andrea & Shang, Wen-long & Xuan, Jin & Xu, Bing, 2023. "Evaluating alternative low carbon fuel technologies using a stakeholder participation-based q-rung orthopair linguistic multi-criteria framework," Applied Energy, Elsevier, vol. 332(C).
    16. Jamal, Taskin & Urmee, Tania & Shafiullah, G.M., 2020. "Planning of off-grid power supply systems in remote areas using multi-criteria decision analysis," Energy, Elsevier, vol. 201(C).
    17. Olga Miroshnichenko & Elena Iakovleva & Natalia Voronova, 2022. "Banking Sector Profitability: Does Household Income Matter?," Sustainability, MDPI, vol. 14(6), pages 1-19, March.
    18. Gulmira Moldabekova & Zhanarys Raimbekov & Arsen Tleppayev & Yuliya Tyurina & Raushan Yesbergen & Gulimai Amaniyazova, 2022. "The Impact of Oil Prices on the Macroeconomic Indicators of Kazakhstan and the Consequences for the Formation of Social Policy," International Journal of Energy Economics and Policy, Econjournals, vol. 12(4), pages 447-454, July.
    19. Yevang Nhiavue & Han Soo Lee & Sylvester William Chisale & Jonathan Salar Cabrera, 2022. "Prioritization of Renewable Energy for Sustainable Electricity Generation and an Assessment of Floating Photovoltaic Potential in Lao PDR," Energies, MDPI, vol. 15(21), pages 1-20, November.
    20. Ahmad, Salman & Ouenniche, Jamal & Kolosz, Ben W. & Greening, Philip & Andresen, John M. & Maroto-Valer, M. Mercedes & Xu, Bing, 2021. "A stakeholders’ participatory approach to multi-criteria assessment of sustainable aviation fuels production pathways," International Journal of Production Economics, Elsevier, vol. 238(C).

    More about this item

    Keywords

    Kazakhstan; Electricity Generation; Thermal Energy; GDP; Fixed Capital Investment; Consumer Price Index; Multivariate Regression.;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ2:2022-06-9. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.