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Electricity Consumption and Economic Growth: Evidence from Spain

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  • Aitor Ciarreta
  • Ainhoa Zarraga

Abstract

The paper investigates both linear and nonlinear causality between electricity consumption and economic growth in Spain for the period 1971-2005. We use the methodology of Toda and Yamamoto (1995) and Dolado and Lütkepohl (1996). We also apply the standard Granger causality tests in a VAR for the series in first differences to achieve stationarity. The results are similar with both methodologies, which shows their robustness. We find unidirectional linear causality running from real GDP to electricity consumption. On the contrary, we find no evidence of nonlinear Granger causality between the series in either direction.
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Suggested Citation

  • Aitor Ciarreta & Ainhoa Zarraga, 2007. "Electricity Consumption and Economic Growth: Evidence from Spain," Energy and Environmental Modeling 2007 24000009, EcoMod.
  • Handle: RePEc:ekd:000240:24000009
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    2. Nwosu Chinedu Anthony & Marcus Samuel Nnamdi, 2013. "Relating Electricity Differentials to Nigeria per Capita Income: A Distributed Lag Approach," International Journal of Business Administration, International Journal of Business Administration, Sciedu Press, vol. 4(3), pages 86-94, May.
    3. 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.
    4. Henryk Gurgul & Łukasz Lach & Roland Mestel, 2012. "The relationship between budgetary expenditure and economic growth in Poland," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 20(1), pages 161-182, March.
    5. Yılmaz Bayar & Hasan Alp Özel, 2014. "Electricity Consumption and Economic Growth in Emerging Economies," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 4(2), pages 1-15, April.
    6. Hao, Ying & Huang, Yuxiu & Cui, Xuegang & Liu, Qiang & Zhang, Yuwen, 2021. "CEO experience and corporate financing decisions: Evidence from a natural experiment in China," China Economic Review, Elsevier, vol. 70(C).
    7. Golam Ahamad, Mazbahul & Nazrul Islam, A.K.M., 2011. "Electricity consumption and economic growth nexus in Bangladesh: Revisited evidences," Energy Policy, Elsevier, vol. 39(10), pages 6145-6150, October.
    8. Dube, Smile, 2009. "Foreign Direct Investment and Electricity Consumption on Economic Growth: Evidence from South Africa," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 62(2), pages 175-200.
    9. Gurgul, Henryk & Lach, Łukasz, 2011. "Causality analysis between public expenditure and economic growth of Polish economy in last decade," MPRA Paper 52281, University Library of Munich, Germany.
    10. Marcela Urrutia A. & Andrea Sánchez Y., 2008. "Generación de Energía Eléctrica en un Modelo para Proyectar el IMACEC," Notas de Investigación Journal Economía Chilena (The Chilean Economy), Central Bank of Chile, vol. 11(2), pages 99-108, August.

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    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General

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