The relationship between electricity consumption and economic growth in Botswana

Concerted effort to diversify Botswana economy, in recent years, has seen increased activity of major sectors, which includes higher reliance on electricity. The demand and consumption of electricity within the Botswana economy increased substantially from the 1980’s. However there have been shortfalls in the country’s electricity generation capacity causing increased reliance on imports from neighbouring countries especially South Africa. Given the importance of electricity in Botswana, this study examined the relationship between electricity and economic growth, employing bounds testing approach to co-integration. Results obtained confirmed the importance of electricity for Botswana’s economic growth. The result also passed a battery of diagnostic tests. This study recommends the need for energy policy reforms that will enable increased electricity production capacity.

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By applying an ARDL bounds testing approach and causality test to investigate the electricity consumption and production with economic growth

World Journal of Science Technology and Sustainable Development ◽

10.1108/wjstsd-08-2019-0054 ◽

2019 ◽

Vol 17 (2) ◽

pp. 182-199 ◽

Cited By ~ 1

Author(s):

Abdul Rehman ◽

Muhammad Irfan ◽

Sehresh Hena ◽

Abbas Ali Chandio

Keyword(s):

Economic Growth ◽

Electricity Consumption ◽

Electricity Production ◽

Bounds Testing ◽

Causality Test ◽

Content Type ◽

Ardl Bounds Testing ◽

Bounds Testing Approach ◽

Testing Approach ◽

Ardl Bounds Testing Approach

Purpose The purpose of this paper is to explore and investigate the electricity consumption and production and its linkage to economic growth in Pakistan. Design/methodology/approach The authors used an augmented Dickey–Fuller unit root test to check the stationarity of the variables, while an autoregressive distributed lag (ARDL) bounds testing approach and causality test were applied to investigate the variables long-term association with the economic growth. Findings The study results show that electricity consumption in the agriculture, commercial and industrial sector has significant association with economic growth, while electricity consumption in the household and street lights demonstrate a non-significant association with the economic growth. Furthermore, results also exposed that electricity production from coal, hydroelectric, natural gas, nuclear and oil sources have significant association with the economic growth of Pakistan. Originality/value This study made a contribution to the literature regarding electricity consumption and production with economic growth in Pakistan by using an ARDL bounds testing approach and causality test. This study provides a guideline to the government of Pakistan that possible steps are needed to improve the electricity production and supply to fulfill the country demand.

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The Relationship Between Electricity Generation, Electricity Consumption, and Economic Growth in Turkey 1975-2019

Advances in Environmental Engineering and Green Technologies - Handbook of Research on Strategic Management for Current Energy Investments ◽

10.4018/978-1-7998-8335-7.ch012 ◽

2021 ◽

pp. 195-211

Author(s):

Abdulkadir Keskin ◽

Berat Kara

Keyword(s):

Economic Growth ◽

Causal Relationship ◽

Electricity Generation ◽

Electric Energy ◽

Electricity Consumption ◽

Electrical Energy ◽

Test Method ◽

Causality Test ◽

The Relationship ◽

Electrical Energy Generation

Electric energy is very important both technologically and economically in today's countries. Countries can generate and consume more energy according to their level of development and the resources they have. In the literature, it is estimated in parallel with the development of countries; there will also be an increase in electrical energy generation and consumption. Similarly, in economies that generate and consume more electricity, it is assumed that this will affect their economic growth. But these assumptions need to be calculated econometrically. This study has been prepared for this purpose. In this study, the relationship between electricity generation, electricity consumption, and economic growth in Turkey was analyzed. In the analysis conducted for the period 1975-2019, the Toda-Yamamoto causality test method was preferred as the method. As a result of the analysis, it was determined that there is a causal relationship from electricity consumption and electricity generation to economic growth, valid for the period 1975-2019 in Turkey.

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Is there a relationship between electricity consumption and economic growth in Zimbabwe?

Corporate Ownership and Control ◽

10.22495/cocv10i4c2art5 ◽

2013 ◽

Vol 10 (4) ◽

pp. 283-290 ◽

Cited By ~ 1

Author(s):

Kunofiwa Tsaurai

Keyword(s):

Economic Growth ◽

Production Capacity ◽

Electricity Consumption ◽

Scaling Up ◽

Electricity Production ◽

Causality Test ◽

The Third ◽

Long Run ◽

Capacity Improvement ◽

Causality Relationship

This paper investigated the causality relationship between electricity consumption and economic growth in Zimbabwe using a bi-variate time series framework for the period 1980 to 2011. The causality relationship between the two variables has been a subject of extensive debate for decades among economists and academics. There are four dominant perspectives with regard to the causality relationship between electricity consumption and economic growth. The first perspective maintains electricity consumption spur economic growth whilst the second perspective argues that it is economic growth that drives electricity consumption. The third perspective suggests that both electricity consumption and economic growth promotes each other whilst the fourth perspective argues that there is no causality relationship at all between the two variables both in the short and long run. Using the bi-variate causality test framework, this study failed to establish any direct causality relationship between energy consumption and economic growth. The results imply the existence of an indirect bi-directional causality relationship between the two variables. The study therefore recommends Zimbabwe authorities to address indirect factors that have a bearing on economic growth over and above scaling up investment efforts into electricity production capacity improvement infrastructure

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The Causal Relationship between Energy Consumption, CO2 Emission, Population Growth and Economic Growth in South Africa: A Multivariate Investigation

10.47363/jesmr/2020(1)110 ◽

2020 ◽

pp. 1-5

Author(s):

Erasmus L Owusu ◽

Keyword(s):

Economic Growth ◽

South Africa ◽

Energy Consumption ◽

Population Growth ◽

Causal Relationship ◽

Co2 Emission ◽

Electricity Consumption ◽

Electricity Production ◽

Bounds Testing ◽

Long Run

The paper empirically examines the short and long-run causal relationship between energy consumption, CO2 emission, population growth and economic growth in South Africa. In so doing, the paper employs multivariate Granger-Causality within an ARDL-bounds testing approach to co-integration and unrestricted error correction model (UECM). The paper finds that energy usage and electricity consumption cause economic growth in South Africa but only in the short run. Additionally, the paper finds that, economic growth, population growth and energy consumption cause CO2 emission. Thus, policies should be targeted at the expansion of renewable and efficient electricity production in order to cope with the expected demand from expected population growth and from increasing demand from industries in order to maintain sustainable economic growth

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Electricity consumption and economic growth in ASEAN

Journal of Emerging Economies and Islamic Research ◽

10.24191/jeeir.v5i2.8801 ◽

2017 ◽

Vol 5 (2) ◽

pp. 16

Author(s):

Ahmad Ghazali Ismail ◽

Arlinah Abd Rashid ◽

Azlina Hanif

Keyword(s):

Economic Growth ◽

Energy Use ◽

Electricity Consumption ◽

Panel Estimation ◽

Real Gdp ◽

Long Run ◽

Bidirectional Relationship ◽

Short Run ◽

Using Data ◽

The Relationship

The relationship and causality direction between electricity consumption and economic growth is an important issue in the fields of energy economics and policies towards energy use. Extensive literatures has discussed the issue, but the array of findings provides anything but consensus on either the existence of relations or direction of causality between the variables. This study extends research in this area by studying the long-run and causal relations between economic growth, electricity consumption, labour and capital based on the neo-classical one sector aggregate production technology mode using data of electricity consumption and real GDP for ASEAN from the year 1983 to 2012. The analysis is conducted using advanced panel estimation approaches and found no causality in the short run while in the long-run, the results indicate that there are bidirectional relationship among variables. This study provides supplementary evidences of relationship between electricity consumption and economic growth in ASEAN.

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