PAKISTAN’S ENERGY CHOICE: WHAT DETERMINES THE ECONOMIC GROWTH?
Download| Volume 14 Issue 1 2018 | |
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| Author(s): |
Nayeem ul Hassan Ansari
Anwar Irshad Burney
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| Abstract | For over a decade Pakistan has been facing a severe electricity crisis. The electricity crisis and load shedding of more than 10 hours in a day hamper all the economic activities both in rural & urban areas. The purpose of the study was to find out the association between Electricity generation resources (Energy Mix) and Economic growth. The study is quantitative. Secondary data of energy generation of 46 years, from 1071 to 2016 has been taken from the Economic Survey of Pakistan for the statistical tests. ADF test was conducted to check the Stationery of the data. A later cointegration test was conducted to check the association among variables. The key findings of the study were that in the short term energy resources from Hydel & Thermal determine the Economic Growth. Whereas, in long run, only energy generation from thermal sources has a positive impact on Economic Growth. For a developing country like Pakistan, the attainment of an ideal energy mix is the key to energy crises. The current study is very much helpful for the policymakers for the decision of ideal energy mix for electricity generation which is not only the economical one but also sustainable for the country. |
| Keywords | Electricity Generation, Economic Growth |
| Year | 2018 |
| Volume | 14 |
| Issue | 1 |
| Type | Short Report |
| Recognized by | Higher Education Commission of Pakistan, HEC | Category | "Y" | Journal Name | IBT Journal of Business Studies | Publisher Name | ILMA University | Jel Classification | F43, N71, O40, Q40, Q43 | DOI | http://dx.doi.org/10.46745/ilma.jbs.2018.14.01.01 | ISSN no (E, Electronic) | 2409-6520 | ISSN no (P, Print) | 2416-8393 | Country | Pakistan | City | Karachi | Institution Type | University | Journal Type | Open Access | Type of Review | Double Blind Peer Reviewed | Format | Paper Link | http://ibtjbs.ilmauniversity.edu.pk/journal/jbs/14.1/1.pdf | Page | 1-9 | References | Abosedra, S. & Baghestani, H. (1989). New evidence on the causal relationship between United States energy consumption and gross national product. Journal of Energy Development, 14, 285-292. Akarca, A.T. & Long, T.V. (1980). On the relationship between energy and GNP: a reexamination. Journal of Energy Development, 5, 326-331. Altinay, G., Karagöl, E. 2005. Electricity Consumption and Economic Growth: Evidence From Turkey, Energy Economics, 27: 849-856. Apergis, N., Payne, J. E., 2009. Renewable Energy Consumption and Economic Growth: Evidence From a Panel of OECD Countries, Energy Policy, 38-1: 656-660. Aqeel, A. & Butt, M.S. (2001). The relationship between energy consumption and economic growth in Pakistan. Asia Pacific Development Journal, 8, 101-110. Asafu-Adjaye, J. (2000). The relationship between energy consumption, energy prices and economic growth; time series evidence from Asian developing countries. Energy Economics, 22, 615-625. Chang, Y., & Wong, J. F. (2001). Poverty, energy and economic growth in Singapore. In Working Paper, Department of Economics, National University of Singapore (p. 37). Cheng, B.S. & Lai, T.W. (1997). An investigation of co-integration and causality between energy consumption and economic activity in Taiwan. Energy Economics, 19, 435- 444. Cheng, B.S. (1995). An investigation of Cointegration and causality between energy consumption and economic growth. Journal of Energy and Development, 21, 73-84. Cheng, B.S. (1999). Causality between energy consumption and economic growth in India: an application of Cointegration and error correction modeling. Indian Economic Review, 34, 39-49. Economic Survey of Pakistan 2016. Erol, U. & Yu, E.S.H. (1988). On the causal relationship between energy and income for industrial countries. Journal of Energy Development, 13, 113-122. Ferguson, R.,Wilkinson, W.& Hill, R. (2000). Electricity use and economic development. Energy policy, 28, 923-934. Glasure, Y.U. (2002). Energy and national income in Korea: further evidence on the role of omitted variables. Energy Economics, 24, 355-365. Joyeux, R., & Ripple, R. D. (2007). Household energy consumption versus income and relative standard of living: a panel approach. Energy Policy, 35, 50-60. Jumbe, C.B.L. (2004). Cointegration and causality between electricity consumption and GDP: empirical evidence from Malawi. Energy Economics, 26, 61-58. Masih, A.M.M. & Masih, R. (1996). Energy consumption, real income and temporal causality; results from a multi-country study based on co-integration and error correction modeling techniques. Energy Economics, 18, 165-183. Morimoto, R. & Hope, C. (2004). The impact of electricity supply on economic growth in Srilanka. Energy Economics, 26, 77-85. Mozumder, P. & Marathe, A. (2007). Causality relationship between electricity consumption and GDP in Bangladesh, Energy Policy, 35, 395-402. Oh, W. & Lee, K. (2004). Causal relationship between energy consumption and GDP revisited:the case of Korea 1970-1999. Energy Economics, 26, 51-59. Rashid,A. & Alam,K. (2010). Nexus between Electricity Generation and Economic Growth in Bangladesh. Asian Social Science, 6, 16-22. Sadorsky, P. 2009. Renewable Energy Consumption and Income in Emerging Economies, Energy Policy, 37: 4021-4028. Soytas, U. & Sari, R. (2003). Energy consumption and GDP: causality relationship in G-7 countries and emerging markets. Energy Economics, 25, 33-37. Soytaş, U. and Sarı, R. 2007. The Relationship Between Energy and Production: Evidence From Turkish Manifacturing Industry, Energy Economics, 29(6): 1151- 1165. Yang, H.Y. (2000). A note on the causal relationship between electricity and GDP in Taiwan. Energy Economics, 22, 309-317. Yoo, S. & Kim, Y. (2006). Electricity generation and economic growth in Indonesia. Energy, 31, 2890-2899. Yoo, Seung-Hoon and Kwak, Soo-Yoon. 2009. Electricity Consumption and Economic Growth in Seven South American Countries, Energy Policy, 38(1): 181-188. Yoo, Seung-Hoon, And Kim, Y. 2006. Electricity Generation and Economic Growth in Indonesia, Energy Policy, 34: 2890-2899. Yu, E.S.H. & Jin, J.C. (1992). Cointegration tests of energy consumption, income and employment. Resources and Energy, 14, 259-266. |