Electricity consumption and economic growth: evidence from Turkey

By Galip Altinay, E. Karagol. 2005

540 citations recorded by the source corpus.

Abstract This study investigates the causal relationship between electricity consumption and real GDP in Turkey during the period of 1950–2000. Both of the series were found to be a stationary process around a structural break by the Zivot and Andrews test. Thus, two different methodologies have been employed to test the Granger non-causality: the Dolado–Lutkepohl test using the VARs in levels, and the standard Granger causality test using the detrended data. Both tests have yielded a strong evidence for unidirectional causality running from the electricity consumption to the income. This implies that the supply of electricity is vitally important to meet the growing electricity consumption, hence to sustain the economic growth in Turkey.

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

View Paper: https://www.semanticscholar.org/paper/ea9162022525a923d2100d152fee4e040eaf8fc2

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Citations in the corpus

Energy conservation policies, growth and trade performance: Evidence of feedback hypothesis in Pakistan (2015, background): “…between energy consumption and economic growth (e.g., Yu and Choi, 1985; Ramcharran, 1990; Ebohon, 1996; Yang, 2000; Wolde-Rufael, 2004; Lee and Chang, 2005; Altinay and Karagol, 2005; Lee, 2006; Chen et al., 2007; Apergis and Payne, 2009; Wolde-Rufael, 2009; Ozturk, 2010; Shahbaz and Lean, 2012).”
Energy consumption and GDP in Tunisia: Cointegration and causality analysis (2009, background): “Altinay and Karagol (2005) investigated the causal relationship between electricity consumption and real GDP in Turkey during the 1950–2000 period.”
Disaggregated energy consumption and GDP in Taiwan : A threshold co-integration analysis (2008, background): “Second, if there is unidirectional causality from energy consumption to economic growth, then restrictions on the use of energy may have significantly adverse effects on economic growth, while an increase in energy consumption may contribute to economic growth (Altinay and Karagol, 2005; Lee, 2005; ”
The Dynamics of Electricity Consumption and Economic Growth:A Revisit Study of Their Causality in Pakistan (2012, background): “[33] for China, Altinay and Karagol [34] for Turkey, Ho and Sui [35] for Hong Kong, Chandran et al.”
Panel estimation for CO2 emissions, energy consumption, economic growth, trade openness and urbanization of newly industrialized countries (2011, background): “…studies that have found the direction of causality from energy consumption to output growth are Yu and Choi (1985), Masih and Masih (1996), Asafu and Adjaye (2000), Yang (2000), Soytas and Sari (2003), Morimoto and Hope (2004), Altinay and Karagol (2005), Narayan and Singh (2007), Squalli (2007).”
Trivariate Causality between Economic Growth, Urbanisation and Electricity Consumption in Angola: Cointegration and Causality Analysis (2013, background): “For Turkish economy, Altinay and Karagol (2005) investigated the relationship between electricity consumption and economic growth.”
Electricity consumption and economic growth, the case of Lebanon (2009, background): “For example, Wolde-Rufael [7], Altinay and Karagol [8] and Ghosh [9], among others, have empirically examined the existence of such causality for several countries covering various periods.”