Examining the Relationship Between Electricity Consumption, Economic Growth, Energy Prices and Technology Development in India

2021 ◽  
pp. 001946622097779
Author(s):  
Geetilaxmi Mohapatra ◽  
A. K. Giri
Keyword(s):  
Economic Growth ◽  
Technology Development ◽  
Technological Development ◽  
Electricity Consumption ◽  
Green Energy ◽  
Series Data ◽  
Energy Prices ◽  
Policy Makers ◽  
Long Run ◽  
Growth Energy

This article examines the empirical relationship between electricity consumption, economic growth, energy prices and technology development for India by taking annual time series data from 1981 to 2017. By using the ARDL bounds testing approach to co-integration, the study found long-run equilibrium relationship does exist among the variables. The article reports the existence of positive and significant impact of economic growth on electricity consumption, whereas technological development negatively affects electricity consumption in both the long run and short run. The Granger causality results reveal the presence of unidirectional causality from economic growth and technological development to electricity consumption in India. Therefore, the present study suggests policy makers in India to increase investment in electricity infrastructure to support high economic growth in the country. Further, the policy makers and the government should encourage more technological innovation to minimise usage of fossil fuels and support the use of green energy. This action could help the economy achieve a sustainable economic growth with better environmental quality.

Investigating the Causal Linkage Among Economic Growth, Energy Consumption and CO2 Emissions in Thailand: An Application of the Wavelet Coherence Approach

2020 ◽  
Vol 10 (1) ◽  
pp. 17-26 ◽  
Author(s):  
Tomiwa Sunday Adebayo ◽  
Gbenga Daniel Akinsola
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Co2 Emissions ◽  
Time Series Data ◽  
Wavelet Coherence ◽  
Series Data ◽  
Energy Usage ◽  
Positive Correlation ◽  
Long Run ◽  
Growth Energy

The study aims to explore the causal linkage between CO2 emissions, economic growth and energy consumption in Thailand utilizing the wavelet coherence approach, conventional Granger and the Toda-Yamamoto causality techniques. In this study, In this study, time-series data spanning the period between 1971 and 2018 were used. No prior study has used the wavelet coherence approach to collect information on the association and causal interrelationship among these economic variables at different frequencies and timeframes in Thailand. The study objectives are structured to answer the following question: Does economic growth and energy consumption lead to CO2 emissions in Thailand?. The findings revealed that: (a) Changes in economic growth led to changes in CO2 emissions in Thailand at different frequencies (different scales) between 1971 and 2018. (b) A bidirectional causal relationship between CO2 emissions and energy consumption. (c) A positive correlation between CO2 emissions and energy usage in the short and long-run between 1971 and 2018. (d) A positive correlation between GDP growth and CO2 emissions in the short and long-run between 1971 and 2018. The study suggested that Thailand should initiate stronger policies towards enhancing the efficiency of energy and energy-usage programs to minimize unnecessary energy waste.

scholarly journals The Relationship between Electric Power Consumption, Foreign Direct Investment and Economic Growth in Sri Lanka

2020 ◽  
pp. 21-31
Author(s):  
S. Maheswaranathan
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Sri Lanka ◽  
Direct Investment ◽  
Time Series Data ◽  
Empirical Finding ◽  
Electricity Consumption ◽  
Series Data ◽  
Long Run ◽  
Bound Test

Purpose: This paper investigates the long run relationship between electricity consumption, foreign direct investment and economic growth in Sri Lanka. Design/Methodology/Approach: The annual time series data over the period 1970–2017 is considered to this study. Augmented Dickey–Fuller (ADF) unit root analysis is employed for examining the stationary properties of the variables. Consequently, Autoregressive Distributed Lag (ARDL) analysis is employed to examining the short- run and long-run relationship between electricity consumption, foreign direct investment and economic growth in Sri Lanka. Further, this study used the diagnostic tests such as the residual normality test, heteroskedasticity and serial autocorrelation tests for misspecification to validate the parameter estimation outcomes achieved by the estimated model. CUSUM test is applied to test the stability of the model. Collected data were analyzed using STATA version 15. Findings: The findings of the bound test confirm that the variables are cointegrated. Further the results reveal that there is a statistically positive significant relationship between electricity consumption, foreign direct investment and economic growth in Sri Lanka in the long run and short term. The empirical finding reveals that one percent increase in electricity consumption and foreign direct investment increases the GDP by 1.5 percent and 12.9 percent in the long run respectively.

Economic Growth, Energy Consumption and Tourism Development in Taiwan: A Granger Causality Approach

2012 ◽  
Vol 524-527 ◽  
pp. 3376-3379 ◽  
Author(s):  
Ming Liu ◽  
Sue Ling Lai ◽  
Kuo Cheng Kuo
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Causal Relationship ◽  
Tourism Development ◽  
Point Of View ◽  
Test Results ◽  
Policy Makers ◽  
Long Run ◽  
Equilibrium Relationship ◽  
Growth Energy

This study examines the causal relationship among economic growth, energy consumption and tourism development in Taiwan over the period from 1965 to 2010. Three Principle test results emerge from this study. First, test results indicate a long-run equilibrium relationship and a bi-direction of causality between energy consumption and tourism development with one proxy, number of visitors, being more significant than the other, visitor expenditures. Second, a bi-directional causality between energy consumption and economic growth is observed. Third, test results indicate no reciprocal causal relationship between tourism development and economic growth. From an energy conservation and sustainable tourism point of view, it is suggested policy makers and industry leaders develop high value, high profit tourism products that aim on attracting more visitor expenditures rather than numbers of visitor.

scholarly journals The Dynamic Relationship among Economic Growth, Energy Consumption and Environment in Iran

2015 ◽  
Vol 50 ◽  
pp. 118-128
Author(s):  
Hamid Amadeh ◽  
Parisa Kafi
Keyword(s):  
Economic Growth ◽  
Carbon Dioxide ◽  
Energy Consumption ◽  
Carbon Dioxide Emissions ◽  
Time Series Data ◽  
Series Data ◽  
Long Run ◽  
Integration Test ◽  
The Government ◽  
Growth Energy

In recent decades, environmental risks and hazards are more visible. These damages caused by a combination of factors such as population growth, economic growth, energy, and industrial activities. This study discusses long-run equilibrium relationship, short-term dynamic relationships and causal relationships between energy consumption, economic growth and the environment (carbon dioxide emissions) in Iran, by using time series data during 1971-2009, through Co integration test. Co integration test demonstrates that a long-run relationship exists among the three variables. It is obvious that carbon dioxide emissions will be increased by positive shock of energy consumption and economic growth, by a one percent increase in energy consumption and economic growth, carbon dioxide emissions will increase 55 and 43 percent respectively. The result of this study is important because of reducing carbon dioxide emissions from energy use and economic development matters. In other words, to reduce carbon dioxide emissions, the government should reduce the amount of Petroleum products in energy consumption, and it also improves the efficiency of using energy.

Empirical Analysis of the Relationship Between Energy Consumption, CO2 Emissions and Economic Growth in Tunisia

2020 ◽  
pp. 437-449
Author(s):  
Sana Essaber Jouini ◽  
Etidel Labidi
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Co2 Emissions ◽  
Time Series Data ◽  
Series Data ◽  
Causality Analysis ◽  
Significance Level ◽  
Conservation Policies ◽  
Long Run ◽  
Growth Energy

This paper examines the long run and causal relationship issues between economic growth, energy consumption and carbon emissions by using vector error correction model for the case of Tunisia within 1970-2010. Empirical results using time series data suggest an evidence of a long-run relationship between the variables at 5% significance level in Tunisia. A Granger causality analysis is conducted amongst the variables. The overall results indicate bidirectional causality between energy consumption and CO2 emissions and a unidirectional causality running from pollutant emissions to economic growth. But there is no direct relation between energy consumption and economic growth. Thus, our results reveal that in short term energy conservation policies, such as rationing energy consumption have no effect on the real output growth of Tunisia.

The impacts of energy prices and technological innovation on the fossil fuel-related electricity-growth nexus: An assessment of four net energy exporting countries

2014 ◽  
Vol 25 (3) ◽  
pp. 46-60 ◽  
Author(s):  
Fei Qin ◽  
Rajah Rasiah ◽  
JiaShen Leow
Keyword(s):  
Economic Growth ◽  
Technological Innovation ◽  
Electricity Generation ◽  
Fossil Fuel ◽  
Electricity Consumption ◽  
Net Energy ◽  
Generation Process ◽  
Energy Prices ◽  
Long Run ◽  
Short Run

This study uses annual data from 1974 to 2011 to examine the long-run and short-run relationships between fossil fuel powered electricity consumption, economic growth, energy prices and technological innovation for four net energy exporting countries. Canada, Ecuador, Norway and South Africa are chosen as the main research background in order to investigate how the development degree and economic dependence on energy exports affect the electricity-growth nexus. Based on the results drawing from the ARDL approach and the Granger causality test, economic growth positively influences the variation in fossil fuel powered electricity consumption in both the short-run and long-run for all four countries. The reverse causality from electricity consumption to economic growth is only evident in Ecuador and Norway. The degree of dependence on energy exports is a contributory factor of explaining the causality puzzle of the electricity-growth nexus. Given the fact that technological innovation does not benefit fossil fuel powered electricity generation, this paper suggests these net energy exporting countries to replace fossil fuel with more sustainable and effective sources in the electricity generation process.

scholarly journals Impact of inflation on economic growth in Pakistan

2021 ◽  
Vol 34 (2) ◽  
pp. 33-41
Author(s):  
Ijaz Uddin ◽  
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Series Data ◽  
Gdp Growth ◽  
Policy Makers ◽  
Long Run ◽  
Integration Test ◽  
Augmented Dickey Fuller ◽  
Short Run ◽  
The Relationship

Introduction. High and sustained economic growth with low inflation is the central objective of the macroeconomic policy makers. Therefore, inflation has been one of the most researched topics in macroeconomics for the last many years because it has serious implications for GDP growth. The main aim of this empirical study to examined the relationship b/w (GDP) Gross Domestic Product Growth and inflation in Pakistan by using time series data from 1990 to 2015. Methodology. This study apply (ADF) Augmented dickey fuller test for stationary, and then, Engel Granger Co-integration test, for short run and long run association. Results. There is a strong positive and significance relationship between GDP growth and inflation in Pakistan. Which indicate that is a 1unit increase an inflation rate will caused by GDP increased by 0.27 unit.

scholarly journals Islamic Capital Markets and Economic Growth

2019 ◽  
Vol 6 ◽  
pp. 39-58
Author(s):  
Dr. Mohammad Ayaz ◽  
Dr.Hassan Shakeel Shah ◽  
Dr. Talat Hussain ◽  
Majid Iqbal
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Capital Markets ◽  
Quantitative Research ◽  
Time Series Data ◽  
Series Data ◽  
Policy Makers ◽  
Independent Variables ◽  
Long Run ◽  
Short Run

This research was conducted to find out whether Islamic capital markets (ICMs) have any effect on economic growth (EG). The study also made a comparison between three countries including Pakistan, Malaysia and UAE in this regard. Quantitative research technique was used in this study, where secondary and time series data was collected on a quarterly basis for the period 2009-2017. The effect of independent variables (IVs) on the dependent variable (DV) was examined. Co-integration and ARDL test were applied in Eviews 9 and Microfit 5.0. A growth model was developed for the selected countries separately in order to see whether IVs had any effect on DV. GDP was the DV of study while IMCAP, TNI and TNL were its IVs. It was found that in case of Pakistan and Malaysia, all the IVs had a significant effect on EG in the short run, while in the long run only IMCAP and TNI have a significant impact. In case of UAE, only two IVs (IMCAP and TNL) had a significant effect on EG in the short run, while in long run only one IV (IMCAP) has a significant impact. Further, it was found that IVs jointly had a significant effect on EG of the selected countries. So, this study concluded that ICMs do have a significant effect on EG of Pakistan, Malaysia and UAE. Considering the importance of ICMs in EG, regulators and policy makers are likely to benefit from the results of the current study which acts as a guide for developing and reforming the ICMs of Pakistan, Malaysia and UAE.Keywords: , , 

scholarly journals Relationship of Energy Consumption and Economic Growth in Pakistan

2020 ◽  
Vol 6 (2) ◽  
pp. 605-617
Author(s):  
Shabana Parveen ◽  
Sohail Farooq ◽  
Habib Elahi Sahibzada ◽  
Hazrat Ali
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Research Work ◽  
Electricity Consumption ◽  
Information Criterion ◽  
Causal Link ◽  
Series Data ◽  
Var Model ◽  
Total Consumption ◽  
Long Run

The paper analyzed the fundamental relationship among the uses of energy, uses of electricity and gas,   total consumption of oil, and economic development of Pakistan. This analysis used  time series data for the  sample span of 1972-2017, retrieved from economic survey of Pakistan (ESP, 2018). Vector Auto Regressive (VAR) model is used for analyzing the causal link amongst the variables. Before estimating VAR, Augmented Dickey Fuller (ADF) and  breusch-Godfrey serial correlation LM tests are applied for confirming a stationarity characteristic of every variable, initial with intercept and then, with interrupt along with the linear deterministic trend. The Schwartz Information Criterion (AIC) is applied for the selection of optimal lag.  Johansen Co-integration analysis is adopted for identifying long run association. Result of the VAR model reveals that 1% increase in consumption of natural gas accelerates economic growth by   1.5%.Similarly 1% increase in consumption of petroleum increases economic growth by about 0.2%. Similarl,1% increase in electricity consumption brings about 1.03% increase in economic growth which is statistically insignificant. The findings of the research work propose that policy makers require to plan for environmental issue while making policies regarding the uses of energy and development of economy and also search for cheap and environmental friendly energy sources like construction of dams, provision of solar system and wind mills.

scholarly journals DYNAMICS OF TECHNOLOGICAL INNOVATION, ENERGY CONSUMPTION, ENERGY PRICE AND ECONOMIC GROWTH IN DENMARK

2019 ◽  
Author(s):  
Wahid Murad ◽  
Md. Mahmudul Alam ◽  
Abu Hanifa Md. Noman ◽  
Ilhan OZTURK
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Technological Innovation ◽  
Time Series Data ◽  
Series Data ◽  
Energy Price ◽  
Energy Prices ◽  
Cumulative Sum ◽  
Long Run ◽  
Ardl Approach

This study investigates the dynamic relationships between technological innovation, consumption of energy, energy price and economic growth in Denmark during the period from 1970 until 2012, using multivariate setting to examine time-series data. The analysis employs the autoregressive distributed lag (ARDL) approach to co-integration in order to examine both the short and long run dynamics among the variables. Furthermore, the study uses the Granger procedure within the VAR framework to identify causality among the variables. The model used in this study is found to be sound, a diagnosis of the reliability of the model reached by testing normality, functional form, serial correlation, and heteroscedasticity, with stability of the model tested using a cumulative sum and cumulative sum square test, based on recursive regression residuals. The ARDL approach to co-integration reveals that real GDP growth positively influences energy consumption as well as significantly in both the short run and long run, while energy prices and technological innovation influence energy consumption negatively and significantly. The results ascertain that energy consumption and economic growth are independent of each other, and thus they support a neutral hypothesis for Denmark. Besides, both the technological innovation and energy prices are found to be Granger cause energy consumption. Therefore, the study suggests that Denmark should adopt conservative energy policy using technological innovation and energy prices as instruments to achieve energy security and protect the environment from pollution.

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