COINTEGRATION RELATIONSHIP AMONG ELECTRICITY CONSUMPTION, GDP, and ELECTRICITY PRICE VARIABLES in TURKEY
This paper analyzes the relationship among electricity consumption per capita, GDP per capita and price of electricity ($/100kWh), and electricity investment in Turkey for the period 1978-2003 using the bound testing procedure to cointegration within Autoregressive Distributed Lag (ARDL) framewor...
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| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Selcuk University Press
2009-06-01
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| Series: | Sosyal Ekonomik Araştırmalar Dergisi |
| Subjects: | |
| Online Access: | https://dergipark.org.tr/tr/download/article-file/289260 |
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| Summary: | This paper analyzes the relationship among electricity consumption per capita, GDP per
capita and price of electricity ($/100kWh), and electricity investment in Turkey for the period
1978-2003 using the bound testing procedure to cointegration within Autoregressive Distributed
Lag (ARDL) framework. In this study, it has been found that electricity consumption per
capita, GDP per capita and price of electricity are cointegrated, and in the long-run, electricity
consumption per capita is Granger cause GDP per capita , while in the short-run, there is
unidirectional Granger causality running from GDP per capita to electricity consumption per
capita and price of electricity. In the long-run, 1 % increase in GDP per capita increases the
electricity consumption per capita by 0.18%, which is significant at the 10 % level. Price of
electricity has insignificant impact on the electricity consumption per capita. In the short-run,
1 % increase in GDP per capita increases the electricity consumption per capita by 0.064 %. |
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| ISSN: | 2148-3043 |