Article | Open Access | Published: 10 July 2018

PAKISTAN'S ENERGY CHOICE: WHAT DETERMINES THE ECONOMIC GROWTH?

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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

Publisher:   ILMA UNIVERSITY

Published:   10 July 2018


E-ISSN:   2409-6520

P-ISSN:   2414-8393

DOI:   http://doi.org/10.46745/ilma.jbs.2018.14.01.01


This is an open access article distributed under the terms of the Creative Commons Attribution CC BY 4.0 license, which permits any use, distribution, and reproduction of the work without further permission provided the original author(s) and source are credited.