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Electricity consumption and economic growth: Exploring panel-specific differences

Author

Listed:
  • Fatih Karanfil

    (EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique)

  • Yuanjing Li

Abstract

In this paper, we examine the long- and short-run dynamics between electricity consumption and economic activities, using panel data of per capita electricity consumption and per capita GDP of 160 countries for the period of 1980-2010, accounting for the degree of electricity dependence and the level of urbanization. Furthermore, in order to capture the differences in this relationship, the full sample is divided into various subsamples based on countries' income levels, regional locations and OECD memberships. This framework is argued and found to be appropriate since the causal links and inferences arising therefrom differ considerably among the subsamples, which led us to conclude that the electricity-growth nexus is highly sensitive to regional differences, countries' income levels, urbanization rates and supply risks

Suggested Citation

  • Fatih Karanfil & Yuanjing Li, 2015. "Electricity consumption and economic growth: Exploring panel-specific differences," Post-Print hal-01385981, HAL.
    • Handle: RePEc:hal:journl:hal-01385981
    DOI: 10.1016/j.enpol.2014.12.001
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    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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