TY - JOUR
T1 - A structural VAR analysis of electricity consumption and real GDP
T2 - Evidence from the G7 countries
AU - Narayan, Paresh Kumar
AU - Narayan, Seema Wati Dhar
AU - Prasad, Arti
PY - 2008
Y1 - 2008
N2 - In this paper, we depart from the literature on electricity consumption-real GDP in that for the first time we examine the reaction of real GDP to shocks in electricity consumption. To achieve this goal, we use the structural vector autoregressive (SVAR) model and examine the impact of electricity consumption shocks on real GDP for the G7 countries. We find that except for the USA, electricity consumption has a statistically significant positive impact on real GDP over short horizons. This finding implies that except for the USA, electricity conservation policies will hurt real GDP in the G7 countries.
AB - In this paper, we depart from the literature on electricity consumption-real GDP in that for the first time we examine the reaction of real GDP to shocks in electricity consumption. To achieve this goal, we use the structural vector autoregressive (SVAR) model and examine the impact of electricity consumption shocks on real GDP for the G7 countries. We find that except for the USA, electricity consumption has a statistically significant positive impact on real GDP over short horizons. This finding implies that except for the USA, electricity conservation policies will hurt real GDP in the G7 countries.
KW - Electricity consumption
KW - Real GDP
KW - SVAR model
UR - http://www.scopus.com/inward/record.url?scp=44649135189&partnerID=8YFLogxK
U2 - 10.1016/j.enpol.2008.02.027
DO - 10.1016/j.enpol.2008.02.027
M3 - Article
SN - 0301-4215
VL - 36
SP - 2765
EP - 2769
JO - Energy Policy
JF - Energy Policy
IS - 7
ER -
