A multivariate causality analysis between electricity consumption and economic growth in Turkey

Pata U. K., Kahveci Ş.

Environment, Development and Sustainability, vol.20, no.6, pp.2857-2870, 2018 (SCI-Expanded) identifier identifier

  • Publication Type: Article / Article
  • Volume: 20 Issue: 6
  • Publication Date: 2018
  • Doi Number: 10.1007/s10668-017-0020-z
  • Journal Name: Environment, Development and Sustainability
  • Journal Indexes: Science Citation Index Expanded (SCI-EXPANDED), Scopus
  • Page Numbers: pp.2857-2870
  • Keywords: ARDL bounds testing, Economic growth, Electricity consumption, Causality, Turkey
  • Istanbul Gelisim University Affiliated: No


Energy is among the essential factors for economic development in every field. Nowadays, in addition to increasing energy consumption for countries, the use of flexible energy sources is important for sustainable growth and development. Electricity is a flexible and important energy source that does not directly pollute the air for sustainable growth. The purpose of this study is to analyze the dynamic causality relationship between electricity consumption and growth in Turkey from 1978 to 2013 with a multivariable autoregressive distributed lag (ARDL) and an error correction model (ECM). According to the results of this study, there is a positive unidirectional and statistically significant causality moving from capital, employment, and electricity consumption to short- and long-term economic growth. Electricity plays a role in production as a complementary factor to capital and employment. Reducing electricity consumption affects economic growth negatively. Therefore, Turkey needs to increase electricity consumption, employment, and capital for sustainable development and growth.