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Electricity consumption and economic growth in Spain

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  • Aitor Ciarreta
  • Ainhoa Zarraga

Abstract

This article investigates linear and nonlinear causality between electricity consumption and economic growth in Spain for the period 1971 to 2005. We use the methodology of Toda and Yamamoto (1995) and Dolado and Lutkepohl (1996). We also apply the standard Granger causality test in a vector autoregression for the series in first differences. We find unidirectional linear causality running from real GDP to electricity consumption. By contrast, we find no evidence of nonlinear Granger causality between the series in either direction.

Suggested Citation

  • Aitor Ciarreta & Ainhoa Zarraga, 2010. "Electricity consumption and economic growth in Spain," Applied Economics Letters, Taylor & Francis Journals, vol. 17(14), pages 1417-1421.
  • Handle: RePEc:taf:apeclt:v:17:y:2010:i:14:p:1417-1421
    DOI: 10.1080/13504850903018689
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    References listed on IDEAS

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