Electricity consumption and growth in Eastern Europe: An ARDL analysis

ABSTRACT

Knowledge about the direction of causality between electricity consumption and economic growth is of primary importance if appropriate energy policies and energy conservation measures are to be devised. This study estimates the causal relationship between electricity consumption and economic growth at per capita and aggregate levels. The study uses the price and income elasticities of total electricity demand by using the Auto Regressive Distributed Lag method for some developing countries in Europe, Albania, Bulgaria, Czech Republic, Hungary, Poland, Romania, and Slovakia.

KEYWORDS:

• ARDL
• cointegration
• development
• elasticity
• electricity consumption
• growth

Notes

¹ The critical values (CVs) are reported in Narayan (2005) for sample sizes ranging from 30 to 80 observations.