Sectoral electricity consumption and economic growth in india: an empirical study from 1970 to 2016

• Jaganath BEHERA ^[1]
  1. [1] University of Hyderabad
• Localización: Applied econometrics and international development, ISSN 1578-4487, Vol. 23, Nº. 2, 2023, págs. 127-152
• Idioma: inglés
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• Resumen

  • The present study investigated the sectoral electricity consumption and economic growth in India from 1970 to 2016. The empirical finding shows that there is a long-run equilibrium relationship among the variables. The Toda & Yamamoto Granger causality result reveals that there is unidirectional causality from electricity consumption of agriculture sector to domestic sector, commercial sector to domestic sector, industrial sector to commercial sector, and total energy consumption to the domestic sector. The policy implication of the analysis suggests that at the sectoral levels, electricity consumption is necessary to increase the productivity in the agriculture, commercial and industrial sectors in India as these sectors are highly electricity-based compared to other sectors. However, to avoid the supply crunch of electricity India should afford an adequate supply of electricity to the required sectors.