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Nexus between electricity consumption and economic growth: a study of Gibraltar

Listed author(s):
  • Ronald Kumar

    ()

  • Peter Stauvermann

    ()

  • Arvind Patel

    ()

In this paper, we examine the long-run cointegration relationship between electricity consumption and GDP per capita in Gibraltar over the period 1996–2012. We examine the short-run and long-run and the causality nexus. The results show electricity consumption has a long run association with the output per capita at levels. Moreover, we note a statistically significant coefficient of electricity consumption the short run (0.53) and in the long-run (1.46). Moreover, a unidirectional causality running form electricity consumption to GDP per capita is noted. Hence, electricity consumption causes income growth in the economy and therefore we recommend efficient use of electricity consumption in key productive sectors of the economy as a way forward to spur growth in the small semi-sovereign economy of Gibraltar. Copyright Springer Science+Business Media New York 2015

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File URL: http://hdl.handle.net/10.1007/s10644-014-9156-0
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Article provided by Springer in its journal Economic Change and Restructuring.

Volume (Year): 48 (2015)
Issue (Month): 2 (May)
Pages: 119-135

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Handle: RePEc:kap:ecopln:v:48:y:2015:i:2:p:119-135
DOI: 10.1007/s10644-014-9156-0
Contact details of provider: Web page: http://www.springer.com

Order Information: Web: http://www.springer.com/economics/development/journal/10644/PS2

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