Causality Between Electricity Consumption and Economic Growth in Turkey: An ARDL Bounds Testing Approach

Turkey is a candidate for becoming a European Union member and has an important geopolitical position for energy sources; hence, the increasing attention given to electric consumption and economic growth in Turkey has been seen in energy journals. In this study, the nexus between electricity consump...

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Bibliographic Details
Published inEnergy sources. Part B, Economics, planning and policy Vol. 9; no. 1; pp. 25 - 31
Main Author Aslan, A.
Format Journal Article
LanguageEnglish
Published Taylor & Francis Group 02.01.2014
Subjects
Domestic
Economics
Electricity
Electricity consumption
Energy sources
GDP
Granger-causality
Impact analysis
Turkey
Vices
Turkey
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Summary:Turkey is a candidate for becoming a European Union member and has an important geopolitical position for energy sources; hence, the increasing attention given to electric consumption and economic growth in Turkey has been seen in energy journals. In this study, the nexus between electricity consumption and economic growth for Turkey is examined by using the autoregressive distributed lag bound test. After we concluded that there was a long-run relationship between electricity consumption-gross domestic product (GDP) and vice versa, we also found that electricity consumption has a positive and a statistically significant impact on Turkey's economic growth and vice versa. In order to examine causality between electricity consumption-GDP, the Granger test was employed and while we concluded that while the neutrality hypotheses is valid for the short run in Turkey, there exists bidirectional Granger causality between electricity consumption and GDP which confirms the feedback hypothesis for the long run.
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ISSN:1556-7249
1556-7257
DOI:10.1080/15567241003681882