Electricity consumption and GDP in an electricity community: Evidence from bound testing cointegration and Granger-causality tests

Alinsato, Alastaire Sèna (2009): Electricity consumption and GDP in an electricity community: Evidence from bound testing cointegration and Granger-causality tests.

Abstract

This study probes nexus between electricity consumption and GDP for the electricity community of Togo and Benin using ARDL bounds testing approach of cointegration. Long-run equilibrium has been established among these variables for Benin. The study further establishes long- and short-run Granger causality running from GDP to electricity consumption for Benin and short-run Granger causality running from GDP to electricity consumption for Togo. The results of the cointegration test and the causality reflect better the Benin and Togo economies that are less dependent on electricity. The absence of causality running from electricity consumption to GDP implies that electricity demand side management measures can be adopted to reduce the wastage of electricity, which would not affect future economic growth in the community.

• Item Type: MPRA Paper
• Language: French
• Keywords: ARDL, cointegration, causality, growth, electricity
• Subjects: C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C32 - Time-Series Models ; Dynamic Quantile Regressions ; Dynamic Treatment Effect Models ; Diffusion Processes ; State Space Models; C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C22 - Time-Series Models ; Dynamic Quantile Regressions ; Dynamic Treatment Effect Models ; Diffusion Processes; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O19 - International Linkages to Development ; Role of International Organizations

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