Elicitation of electricity consumption habit formation among new subscribers

We examine the causal relationship between electricity consumption and sectoral output growth in Uganda. First, we use vector error correction techniques to estimate the long-run relationship between electricity consumption and GDP growth. Second, we apply Granger causality tests to determine the direction of this relationship. Third, we disaggregate GDP into its major sectors of agriculture, industry and services and test for Granger causality between sectoral output growth and electricity consumption. At the macro-level, results suggest long-run unidirectional causality running from electricity consumption to GDP. At the sectoral level, results indicate long-run causality running from electricity consumption to industry; a unidirectional short-run causality running from services sector to electricity consumption; and neutrality in the agricultural sector. These results have important implications for policy. In particular, policies that improve electricity generation and consumption will accelerate growth in Uganda by facilitating industrial sector growth. Moreover, electricity conservation policies can be applied in the services sector without hurting growth.

Energy Consumption and Economic Growth Nexus in Ghana.

ABSTRACTThe paper analyses the causal relationship between electricity consumption and economic growth in Lesotho for the period 1972–2011 by using autoregressive distributed lag bounds testing approach of cointegration. The results indicate that there is a stable long-term relationship between electricity consumption and economic growth, with the direction of causality running from economic growth to electricity consumption. These findings support the conservation hypothesis and imply that economic growth in Lesotho spurs electricity consumption, but not the other way round. Therefore, various energy conservation measures aimed at reducing electricity consumption and waste in Lesotho may not have a negative impact on economic growth.

The national demand for primary energy has experienced an average increase of almost 5% in recent years, driven by the growth in electricity consumption, which grew by an average of 6% per year between 2003 and 2017, by virtue of the almost generalization of rural electrification and the dynamism of our economy and especially the policy of major works in infrastructure, industry, agriculture, tourism, and social housing. In fact, forecasting the demand for electrical energy remains a controversial issue in the development of the electricity grid and energy management. The ARIMA (1, 1, 1) model is applied to model electrical energy consumption for the annual period from 1971 to 2020. The same data are also used to predicting for 2021–2030 in order to verify the adequacy of the model and to provide information on the state of energy demand in Morocco in the future. The main results indicate an upward trend in electrical energy consumption by the end of 2030, with electricity consumption expected to be in the range of 2039639.09–53589.00 GWh per year.

The relationship and causality direction between electricity consumption and economic growth is an important issue in the fields of energy economics and policies towards energy use. Extensive literatures has discussed the issue, but the array of findings provides anything but consensus on either the existence of relations or direction of causality between the variables. This study extends research in this area by studying the long-run and causal relations between economic growth, electricity consumption, labour and capital based on the neo-classical one sector aggregate production technology mode using data of electricity consumption and real GDP for ASEAN from the year 1983 to 2012. The analysis is conducted using advanced panel estimation approaches and found no causality in the short run while in the long-run, the results indicate that there are bidirectional relationship among variables. This study provides supplementary evidences of relationship between electricity consumption and economic growth in ASEAN.

The electricity consumption and economic growth nexus: Evidence from Greece

The dynamics of electricity consumption and economic growth: A revisit study of their causality in Pakistan

The purpose of this study is to re-visit the relationship between electricity consumption and economic growth in Portugal over the sample period of 1974 to 2008 in a multivariate framework. The results of this study indicate that the variables are cointegrated and the causal relationship between electricity consumption and economic growth in Portugal is bi-directional. Uni-directional causalities running from energy price and real income to employment are also found. Contrary to earlier studies, our results indicate that Portugal is an energy-dependent economy and energy-conservation policies could be detrimental to its economic growth and development. Therefore, renewable energy sources such as bio-fuel, solar power, hydro power, wind power, and wave power should be aggressively explored to ensure sufficient supply of energy to support the growth of the Portuguese economy in an environment-friendly manner.

In the paper, we propose a novel method based on wavelet analysis to test the impact of specific frequency fluctuation of series in establishing the cointegration and Granger causality among series. The method is rather time domain oriented and can rely on the standard procedure of error correction model. Then we use the method to test for electricity consumption and economic growth in China. Our test results indicate that electricity consumption is the frequency Granger cause of economic growth in both the short and long run. It also indicates that the cointegration between electricity consumption and economic growth is operated with the low frequency business cycle movement.

Information and Communication Technology, electricity consumption and economic growth in OECD countries: A panel data analysis

In this paper, the relationship between electricity consumption (LEC) and economic growth (LGDP) using Autoregressive Distributed Lag (ARDL) model and Granger causality within error correction framework in India over the period 1970–1971 to 2009–2010 are analysed. The results of these tests exhibit the existence of long-run equilibrium relationship and bilateral causality in case of India. Then, Hodrick–Prescott filter is used to decompose the data into trend and cyclical (fluctuation) components of electricity consumption and economic growth. The results of decomposed series revealed that both series are cointegrated with the strong evidence of bidirectional causality, implying that trend and cyclical components are strongly correlated with business cycles in India. From these findings, we conclude that the feedback hypothesis is applicable in case of India. Therefore, government should undertake necessary policy measures to augment the investment in power sector from existing level and more importantly the emphasis should also be given on the efficient use of electricity.

In the past decade, as an important driving force of economic growth, the China’s electricity consumption growth rate has been decoupled from GDP growth rate. The economic reasons behind this abnormal phenomenon are worthy of further study. Based on the LMDI method, this paper built a model to decompose the total electricity consumption in Hunan province from 2010 to 2017 from the industrial and residential perspective. The results showed that: integrally, scale effect was the main driving factor of electricity consumption growth, intensity effect was the main inhibiting factor, and structure effect had no obvious influence; there are significant differences between the results of industrial and residential sectors, for the industry, the productive consumption intensity effect was the most significant factor that inhibited the growth of electricity consumption, while all the effects of residential sector were shown as promotion, and the increase of electricity consumption in the residential sector played a key role in the growth rate of electricity consumption in Hunan province.

Real business-cycle model with habits: Empirical investigation

In recent years, China’s residential electricity consumption has continued to grow at high speed, and its contribution to the growth of the total electricity consumption has become more prominent. The peak-to-valley gap is also gradually increasing, which reduces the efficiency of electricity—an increasingly important terminal energy form. The resident travel chain is a major influencing factor of residents’ electricity consumption, and it is of great significance to dig deeper into the mechanism of its influence on residents’ electricity consumption behavior. In this paper, the time distribution model of household power load in summer in Beijing is constructed by comprehensively considering the difference of travel chain, electricity consumption behavior, and load level. The Monte Carlo simulation method is introduced for the simulation of the model. According to the results, both household type and temperature have a significant impact on the peak load, while the difference in the choice of mode of transportations does not. It is also found that the household appliance with the most potential for regulation is the air conditioning, followed by the water heater, which where regulation and optimization should be mainly carried out.

This research study contributes to the ever-expanding literature by examining multivariate cointegration and causality relationships between electricity consumption, economic growth and other growth determinants for quarterly South African data collected between 1994/Q1 – 2014/Q4. The motivation behind this current research case study becomes apparent when taking into consideration that no previous studies have gone further than bivariate and trivariate analysis in investigating the electricity-growth nexus in South Africa. In conducting our empirical investigation, our obtained empirical results are two-fold in nature. Firstly, we find significant multivariate long-run cointegration relationships between economic growth, electricity consumption and other growth determinants. Secondly, our empirical analysis offers support in favour of the neutrality hypothesis, that is, the notion of no causal effects existing between electricity consumption and economic growth in the long-run. However, we find that exports directly cause electricity consumption whereas economic growth, domestic investment and employment levels causally flow to exports.