Title: Causality between Electricity Consumption and economic growth in Tunisia: policy implications
Authors: Nejib Chouaibi, Tahar Abdessalem
Addresses: Laboratory of Economics and Industrial Management, Polytechnic School of Tunisia, Tunisia. ' Laboratory of Economics and Industrial Management, Polytechnic School of Tunisia, Tunisia
Abstract: In this paper, we examine the causal relationship between Electricity Consumption (EC) and economic growth in Tunisia during 1971-2007. Empirical results of the study verify the absence of a long-term equilibrium relationship between EC and economic growth in Tunisia but verify the existence of unidirectional causality running from EC to economic growth by adopting Granger causality model. Consequently, the policy makers in Tunisia should place priority in early stages of reconstruction on building capacity additions and infrastructure development of the electric power sector as this would force the sustainable economic growth in Tunisia.
Keywords: electricity consumption; economic growth; cointegration; Granger causality; Tunisia; energy consumption; electric power sector.
International Journal of Economic Policy in Emerging Economies, 2011 Vol.4 No.3, pp.211 - 226
Received: 04 Jan 2010
Accepted: 22 Nov 2010
Published online: 11 Jan 2015 *