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Does electricity consumption panel Granger cause GDP? A new global evidence

Author

Listed:
  • Narayan, Paresh Kumar
  • Narayan, Seema
  • Popp, Stephan

Abstract

The goal of this paper is to undertake a panel data investigation of long-run Granger causality between electricity consumption and real GDP for seven panels, which together consist of 93 countries. We use a new panel causality test and find that in the long-run both electricity consumption and real GDP have a bidirectional Granger causality relationship except for the Middle East where causality runs only from GDP to electricity consumption. Finally, for the G6 panel the estimates reveal a negative sign effect, implying that increasing electricity consumption in the six most industrialised nations will reduce GDP.

Suggested Citation

  • Narayan, Paresh Kumar & Narayan, Seema & Popp, Stephan, 2010. "Does electricity consumption panel Granger cause GDP? A new global evidence," Applied Energy, Elsevier, vol. 87(10), pages 3294-3298, October.
    • Handle: RePEc:eee:appene:v:87:y:2010:i:10:p:3294-3298
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    More about this item

    Keywords

    C22 Real GDP Electricity consumption Panel Granger causality;

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

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