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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Bibliographic Details
Main Authors: Hüseyin Tatlıdil, Fatih Çemrek, Hülya Şen
Format: Article
Language:English
Published: Selcuk University Press 2009-06-01
Series:Sosyal Ekonomik Araştırmalar Dergisi
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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 %.
ISSN:2148-3043