Linear and nonlinear causality between sectoral electricity consumption and economic growth: Evidence from Taiwan

作者：Cheng Lang, Yang; Lin, Hung Pin^*; Chang, Chih Heng

来源：Energy Policy, 2010, 38(11): 6570-6573.

DOI：10.1016/j.enpol.2010.08.009

• Electricity consumption
• Causality
• Economic growth

This study investigates the linear and nonlinear causality between the total electricity consumption (TEC) and real gross domestic production (RGDP). Unlike previous literature, we solve the undetermined relation between RGDP and electricity consumption by classifying TEC into industrial sector consumption (ISC) and residential sector consumption (RSC) as well as investigating how TEC. ISC, and RSC influence Taiwan's RGDP. By using the Granger's linear causality test, it is shown that (i) there is a bidirectional causality among TEC, ISC. and RGDP, but a neutrality between RSC and RGDP with regard to the linear causality and (ii) there is still a bidirectional causality between TEC and RGDP, but a unidirectional causality between RSC and RGDP with regard to the nonlinear causality. On the basis of (i) and (ii), we suggest that the electricity policy formulators loosen the restriction on ISC and limit RSC in order to achieve the goal of economic growth.

• 出版日期2010-11
• 单位南华大学