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Remittances, electricity consumption and electric power losses in Jamaica

Author

Listed:
  • Anupam Das
  • Adian McFarlane

Abstract

Purpose - The purpose of this paper is to examine the impact of remittance inflows (remittances) on electricity consumption and electric power losses in Jamaica. Design/methodology/approach - The authors use annual data from 1976 to 2014 and apply vector error correction modelling, Granger causality testing and impulse response analysis. Findings - First, the authors find that there is co-integration between remittances and the energy variables, namely electricity consumption and electric power losses. Second, short-run Granger causality exists between the energy variables and remittances. This causality is bidirectional between the energy variables and positive changes in remittances, but it is unidirectional running from the energy variables to negative movements in remittances. Third, the authors find that in the long-run remittances have a negative relationship with electric power losses and a positive relationship with the consumption of electricity. Practical implications - Findings from this paper will help to elucidate the relationship between electricity consumption, and electric power losses, and remittances. Social implications - The problem of electric power losses is acute in Jamaica and it is mostly due to theft. At the same time, Jamaica receives significant remittances. Social policy could have a role to encourage the use of remittances to help stem the theft of electricity. Originality/value - This is the first study that examines the relationships between remittances, electricity consumption and electric power losses.

Suggested Citation

  • Anupam Das & Adian McFarlane, 2021. "Remittances, electricity consumption and electric power losses in Jamaica," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 49(3), pages 558-575, April.
  • Handle: RePEc:eme:jespps:jes-09-2020-0466
    DOI: 10.1108/JES-09-2020-0466
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    Citations

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    Cited by:

    1. David Adebisi Samuel, 2023. "Impact of Electricity Loss on Gross Domestic Product in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(1), pages 1556-1566, January.
    2. Agradi, Mawunyo, 2023. "Does remittance inflow influence energy poverty?," Applied Energy, Elsevier, vol. 335(C).

    More about this item

    Keywords

    Remittances; Electricity consumption; Electric power losses; Jamaica; ARDL; Granger; C22; F24; O13;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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