Economic growth, financial development, urbanisation and electricity consumption nexus in UAE

By Rashid Sbia, Muhammad Shahbaz, Ilhan Ozturk. 2017

117 citations recorded by the source corpus.

Abstract This study aims to explore the relationship between economic growth, urbanisation, financial development and electricity consumption in United Arab Emirates for the period 1975–2011. The ARDL bounds testing approach is employed to examine the long-run relationship between the variables in the presence of structural breaks. The VECM Granger causality is applied to investigate the direction of causal relationships between the variables. Our empirical exercise validated the cointegration between the series in the case of United Arab Emirates. Further, results reveal that an inverted U-shaped relationship is found between economic growth and electricity consumption. Financial development adds in electricity consumption. The relationship between urbanisation and electricity consumption is also an inverted U-shaped. This implies that urbanisation increases electricity consumption initially and, after a threshold level of urbanisation, electricity demand falls. The causality analysis finds feedback hypothesis between economic growth and electricity consumption, i.e. economic growth and electricity consumption are interdependent. The bidirectional causality is found between financial development and electricity consumption. Economic growth and urbanisation Granger cause each other. The feedback hypothesis is also found between urbanisation and financial development, financial development and economic growth, and the same is true for electricity consumption and urbanisation.

Subfields: Economics and Econometrics, Pollution, Renewable Energy, Sustainability and the Environment

View Paper: https://www.semanticscholar.org/paper/c8e7c5c284c4b7d5bc87f37a457fabc82a933a07

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

1. Husam Rjoub
2. Jamiu Adetola Odugbesan
3. T. Adebayo

In Pollution

1. Husam Rjoub
2. Jamiu Adetola Odugbesan

In Renewable Energy, Sustainability and the Environment

1. Husam Rjoub
2. Jamiu Adetola Odugbesan
3. T. Adebayo

Citations in the corpus

• Relationship Among Economic Growth, Energy Consumption, CO2 Emission, and Urbanization: Evidence From MINT Countries (2020, background): “In another study, an inverted U-shaped relationship was found between economic growth and energy consumption (Sbia et al., 2017).”