Electricity consumption and economic growth across Australian states and territories

Sefa Awaworyi Churchill, Kris Ivanovski

Research output: Contribution to journalArticleResearchpeer-review

Abstract

This study investigates the long-run and short-run dynamics between electricity consumption (along with traditional inputs such as labour and capital) on economic output for a panel of seven Australian states/territories over the period 1990 to 2015. Our panel results suggest that electricity consumption is positively related to gross state product in both the long-run and short-run, and the growth effect also extend to traditional inputs such as capital and labour. However, the state/territory-specific results identify both positive and negative relationships between electricity consumption and gross state product. Furthermore, we find evidence of bi-directional causality between state economic growth and capital, labour and electricity consumption, highlighting the importance of traditional inputs as well as electricity consumption in the growth process.
Original languageEnglish
Number of pages13
JournalApplied Economics
DOIs
Publication statusAccepted/In press - 2019

Keywords

  • Australia
  • electricity consumption
  • energy consumption
  • economic output

Cite this

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Electricity consumption and economic growth across Australian states and territories. / Awaworyi Churchill, Sefa; Ivanovski, Kris.

In: Applied Economics, 2019.

Research output: Contribution to journalArticleResearchpeer-review

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AU - Ivanovski, Kris

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AB - This study investigates the long-run and short-run dynamics between electricity consumption (along with traditional inputs such as labour and capital) on economic output for a panel of seven Australian states/territories over the period 1990 to 2015. Our panel results suggest that electricity consumption is positively related to gross state product in both the long-run and short-run, and the growth effect also extend to traditional inputs such as capital and labour. However, the state/territory-specific results identify both positive and negative relationships between electricity consumption and gross state product. Furthermore, we find evidence of bi-directional causality between state economic growth and capital, labour and electricity consumption, highlighting the importance of traditional inputs as well as electricity consumption in the growth process.

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