Causality relationship between electricity consumption and GDP in Bangladesh |
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Authors: | Pallab Mozumder Achla Marathe |
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Affiliation: | 1. The Environmental Institute, University of Massachusetts Amherst, Amherst, MA 01003, USA;2. Virginia Bioinformatics Institute, Virginia Tech, 1880 Pratt Drive, Bldg XV, Blacksburg, VA 24061, USA |
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Abstract: | In this paper, we examine the causal relationship between the per capita electricity consumption and the per capita GDP for Bangladesh using cointegration and vector error correction model. Our results show that there is unidirectional causality from per capita GDP to per capita electricity consumption. However, the per capita electricity consumption does not cause per capita GDP in case of Bangladesh. The finding has significant implications from the point of view of energy conservation, emission reduction and economic development. |
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Keywords: | Electricity consumption Economic growth Granger causality |
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