Does electricity consumption panel Granger cause GDP? A new global evidence

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Abstract

The goal of this paper is to undertake a panel data investigation of long-run Granger causality between electricity consumption and real GDP for seven panels, which together consist of 93 countries. We use a new panel causality test and find that in the long-run both electricity consumption and real GDP have a bidirectional Granger causality relationship except for the Middle East where causality runs only from GDP to electricity consumption. Finally, for the G6 panel the estimates reveal a negative sign effect, implying that increasing electricity consumption in the six most industrialised nations will reduce GDP.

Original languageEnglish
Pages (from-to)3294-3298
Number of pages5
JournalApplied Energy
Volume87
Issue number10
DOIs
Publication statusPublished - Oct 2010
Externally publishedYes

Keywords

  • C22
  • Electricity consumption
  • Panel Granger causality
  • Real GDP

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