Electricity consumption and economic growth: Bounds and causality analyses of OPEC members

Jay Squalli, Zayed University

Document Type

Article

Source of Publication

Energy Economics

Publication Date

11-1-2007

Abstract

This paper investigates the relationship between electricity consumption and economic growth for OPEC members. The bounds test yields evidence of a long-run relationship between electricity consumption and economic growth for all OPEC members. Causality results suggest that economic growth is dependent on electricity consumption in five countries, less dependent in three countries, and independent in three countries. Because these countries do not necessarily share similar political and economic traits, no single universal policy implication can be inferred from the results. The disparities across these causality results, therefore, stress the importance of formulating causality explanations while taking into account the particularities of individual countries rather than blindly applying the conventional interpretations. © 2006 Elsevier B.V. All rights reserved.

ISSN

0140-9883

Publisher

Elsevier BV

Volume

29

Issue

6

First Page

1192

Last Page

1205

Disciplines

Business

Keywords

Bounds test, Causality, Economic growth, Electricity consumption, OPEC

Scopus ID

34548381659

Indexed in Scopus

yes

Open Access

no

Link to Full Text

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