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Causality Relationship Between Electricity Supply and Economic Growth: Evidence from Pakistan

Author

Listed:
  • Anam Azam

    (School of Economics and Management, North China Electric Power University, Beijing 102206, China)

  • Muhammad Rafiq

    (Department of Electrical Engineering, University of Engineering and Technology, Taxila 47050, Pakistan)

  • Muhammad Shafique

    (Department of Architecture and Civil Engineering, City University of Hong Kong, Hong Kong 999077, China)

  • Muhammad Ateeq

    (Department of Mechanical Engineering, COMSATS University Islamabad, Sahiwal Campus, Sahiwal 57000, Pakistan)

  • Jiahai Yuan

    (School of Economics and Management, North China Electric Power University, Beijing 102206, China
    Beijing Key Laboratory of New Energy and Low-Carbon Development, North China Electric Power University, Beijing 102206, China)

Abstract
The long-term anticipation of electricity supply (ELS) and demand has supposed substantial prominence in the elementary investigation to offer sustainable resolutions to electricity matters. In this editorial, an outline of the organization of the electricity segment of Pakistan and analysis of historical supply and demand statistics, an up-to-date position of the contrary set of energy plans is presented. The intention of this analysis is to explore the Granger causality relationship between electricity supply and economic growth (EG) by using a multivariate context with time series statistics covering 1990 to 2015 in Pakistan. Augmented dickey-fuller (ADF) and Philips-Perron (PP) unit root tests indicate that variables are non-stationary and integrated in a similar order (1). Our findings also reveal that variables economic growths (GDP), electricity supply (ELS), investment (INV), and export (EX) are co-integrated. The study also finds the Granger causality runs from EG to ELS deprived of any feedback effect. Therefore, the policy implications from our findings indicate that electricity preservation strategies may be implemented without any economic adverse impacts.

Suggested Citation

  • Anam Azam & Muhammad Rafiq & Muhammad Shafique & Muhammad Ateeq & Jiahai Yuan, 2020. "Causality Relationship Between Electricity Supply and Economic Growth: Evidence from Pakistan," Energies, MDPI, vol. 13(4), pages 1-20, February.
    • Handle: RePEc:gam:jeners:v:13:y:2020:i:4:p:837-:d:320700
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