Electricity consumption and economic growth nexus in Zimbabwe revisited: fresh evidence from Maki cointegration

2019-05-28
Samu, Remember
Bekun, Festus Victor
Fahrioglu, Murat
Show full item record
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
248
views
0
downloads
This study explores the relationship between electricity consumption, real gross domestic product per capita and carbon dioxide emissions in Zimbabwe. To achieve this, the study set off by examining the stationarity properties of the variables under review with the Zivot-Andrews (1992) unit root test that accounts for a single structural break. Subsequently, Maki (2012) cointegration test, which accounts for multiple structural breaks, is applied for equilibrium relationship between the variables under review while the long run regression of dynamic ordinary least square (DOLS) is employed for long-run coefficients as estimation procedures. In order to account for the direction of causality flow, the Toda-Yamamoto (1995) causality test is used for annual frequency data set spanning from 1971-2014. Empirical evidence from the Maki cointegration test shows that there exists a long-run equilibrium relationship between electricity consumption, carbon dioxide emissions and real gross domestic product per capita over the sampled period. The long-run regression suggests that there exist a positive statistically significant relationship between real income and electricity consumption. Thus, corroborating the electricity-led growth hypothesis. This result is supported by the causality test, as one-way causality is observed running from electricity consumption to real gross domestic product. Thus, this is suggestive to government administrators and policymakers that the Zimbabwean economy is electricity dependent. However, there is a tradeoff for environmental quality. As the increase in electricity consumption increases carbon dioxide emissions. The need for diversification of Zimbabwe energy portfolio to cleaner and environmentally friendly energy sources is recommended, given the world global consciousness for cleaner energy consumption.
Economic growth, Electricity consumption, Energy policy, Maki co-integration, Zimbabwe
https://hdl.handle.net/11511/66998
INTERNATIONAL JOURNAL OF GREEN ENERGY
Engineering, Article

Suggestions

Energy consumption, economic growth, and carbon emissions: Challenges faced by an EU candidate member
Soytaş, Uğur; Sarı, Ramazan (2009-04-15)
This paper investigates the long run Granger causality relationship between economic growth, carbon dioxide emissions and energy consumption in Turkey, controlling for gross fixed capital formation and labor. The most interesting result is that carbon emissions seem to Granger cause energy consumption, but the reverse is not true. The lack of a long run causal link between income and emissions may be implying that to reduce carbon emissions, Turkey does not have to forgo economic growth.
Energy consumption, income, and carbon emissions in the United States
Soytaş, Uğur; Sarı, Ramazan (2007-05-15)
This paper investigates the effect of energy consumption and output on carbon emissions in the United States. Earlier research focused on testing the existence and/or shape of an environmental Kuznets curve without taking energy consumption into account. We investigate the Granger causality relationship between income, energy consumption, and carbon emissions, including labor and gross fixed capital formation in the model. We find that income does not Granger cause carbon emissions in the US in the long run...
Energy use, carbon dioxide emissions, GDP, industrialization, financial development, and population, a causal nexus in Sri Lanka: With a subsequent prediction of energy use using neural network
Asumadu-Sarkodie, Samuel; Owusu, Phebe Asantewaa (2016-01-01)
The study examines the causal relationship between energy use, carbon dioxide emissions, GDP, industrialization, financial development, and population from 1971 to 2012 in Sri Lanka, using the ARDL regression analysis and a subsequent prediction of energy use using neural network. There was evidence of a long- run equilibrium relationship running from carbon dioxide emissions, GDP, industrialization, financial development, and population to energy use. The Granger causality test shows a unidirectional causa...
Energy consumption and GDP: causality relationship in G-7 countries and emerging markets
Soytaş, Uğur; Sarı, Ramazan (2003-01-01)
The causality relationship between energy consumption and income is a well-studied topic in energy economics. This paper studies the time series properties of energy consumption and GDP and reexamines the causality relationship between the two series in the top 10 emerging markets-excluding China due to lack of data-and G-7 countries. We discover bi-directional causality in Argentina, causality running from GDP to energy consumption in Italy and Korea, and from energy consumption to GDP in Turkey, France, G...
Electricity market modeling using stochastic and robust optimization
Yıldırım, Miray Hanım; Wilhelm Weber, Gerhard; Türker Bayrak, Özlem; Department of Scientific Computing (2015)
Sustainable development relying on sustainable and renewable energy systems is becoming one of the major policies of many countries. This forces the policy makers to establish many reforms and revolutions, which evolve electricity markets into a more competitive form. The competitive environment results in surging electricity demand and supply that brings in a critical challenge: uncertainty. In this thesis, the uncertainties with respect to prices and demand in the market are explored by using stochastic p...
Citation Formats
R. Samu, F. V. Bekun, and M. Fahrioglu, “Electricity consumption and economic growth nexus in Zimbabwe revisited: fresh evidence from Maki cointegration,” INTERNATIONAL JOURNAL OF GREEN ENERGY, pp. 540–550, 2019, Accessed: 00, 2020. [Online]. Available: https://hdl.handle.net/11511/66998.
METU IIS - Integrated Information Service open@metu.edu.tr