Muhammad, Shahbaz and Lean, Hooi Hooi (2011): The Dynamics of Electricity Consumption and Economic Growth:A Revisit Study of Their Causality in Pakistan.
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This study revisits the relationship between electricity consumption and economic growth in Pakistan by controlling and investigating the effects of two major production factors - capital and labor. The empirical evidence confirms the cointegration among the variables and indicates that electricity consumption has a positive effect on economic growth. Moreover, bi-directional Ganger causality between electricity consumption and economic growth has been found. The findings suggests that adoption of electricity conservation policies to conserve energy resources may unwittingly decline growth and the lower growth rate will in turn further decrease the demand for electricity. Therefore, governments contemplating such conservationist policies should instead explore and develop alternate sources of energy as a strategy rather than just increasing electricity production per se in order to meet the rising demand for electricity in their quest towards sustaining development in the country.
|Item Type:||MPRA Paper|
|Original Title:||The Dynamics of Electricity Consumption and Economic Growth:A Revisit Study of Their Causality in Pakistan|
|English Title:||The dynamics of electricity consumption and economic growth: a revisit study of their causality in Pakistan|
|Keywords:||Electricity Consumption; Economic Growth; Ganger Causality|
|Subjects:||F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F43 - Economic Growth of Open Economies
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q4 - Energy
|Depositing User:||Muhammad Shahbaz|
|Date Deposited:||06. Sep 2011 14:12|
|Last Modified:||14. Feb 2013 05:16|
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