Economic Growth and Electricity Consumption in 12 European Countries: A Causality Analysis Using Panel Data

• Autores: Aitor Ciarreta Antuñano, Ainhoa Zarraga Alonso
• Localización: Documentos de Trabajo BILTOKI, ISSN-e 1134-8984, Nº. 4, 2008
• Idioma: inglés
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• Resumen

  • We apply recent panel methodology to investigate the relationship between electricity consumption and real GDP for a set of 12 European Union countries using annual data for the period 1970-2004. Recently developed tests for panel unit roots, cointegration in heterogeneous panels and panel causality are employed. The results show a long-run relationship between the series. We estimate this relationship and test for causality. We find no short-run causality in any direction. These results might help to design appropriate electricity consumption policies in the sample countries, as well as investment policies in interconnections to build a single European market for electricity.