Journal of the Korean Institute of Illuminating and Electrical Installation Engineers (조명전기설비학회논문지)

The Korean Institute of IIIuminating and Electrical Installation Engineers (한국조명전기설비학회)
권호 표지
DOI QR코드

DOI QR Code

An Analysis on the Causal Relation Between Electricity Consumption and GDP by industries in KOREA

한국의 산업별 전력소비와 경제성장간 인과관계 분석

  • Received : 2016.01.15
  • Accepted : 2016.02.03
  • Published : 2016.03.31
Download PDF
⟨ Previous Next ⟩

Abstract

In these days global energy policy is changed from "supply" to "demand". In this regards, there are needs to analysis on effect of policy such as energy efficiency strategy, electricity rates. This study examines the relationship between energy consumption reduced by new energy policy and GDP growth for each industrial sector for Korea from 1970 to 2013. With respect to the direction of causality, energy use of 1th industry like agriculture and mining leads to GDP growth. On the other hand, GDP growth of 2nd industry, manufacturing, leads to energy use. And there is bidirectional causality in 3rd industry, service sector. These findings imply that the government policies aimed at reducing electricity consumptions and increasing energy efficiency should be progressed cautiously depend on status of each industry condition.

Keywords

References

  1. CheolHwan Kim: Causal Relationship between Energy Consumption and Economic Growth in Korea using Error Correction Model, Journal of National Korean Economy, 1, 1998.
  2. Soowon Mo and Changbeum Kim: Dynamic Causal Relationships between Energy Consumption and Economic Grwoth, The Korean Journal of resource economics 12-2, 327-346, 2003.
  3. Moonyoung Baek.Woohwan Kim: Investigation on Granger Causality between Economic Growth and Demand for Electricity in Korea: Using Quarterly Data, The Korean Journal of Applied Statistics, 25-1, 89-99, 2012. https://doi.org/10.5351/KJAS.2012.25.1.089
  4. Kraft, J., Kraft,A, Note and Comments: On the relaltionship between Energy and GNP. The Journal of Energy and Development 3: 401-403, 1978.
  5. Yoo and Lee: Electricity consumption and economic growth: A cross country Analysis, Energy Policy 38, 2010.
  6. Lee,C.C.,and Lee J.D.: A panel data analysis of the demand for total energy and electricity in OECD countries, Energy Journal 31, 2010.
  7. Ki-Hyun Park.Jinkyung Kim: Sectorial Energy Consumption and Economic Growth in Korea, Korea Energy Economics Institute, 12-2, 2013, 59-83, 2013.
  8. Huang, Hwang, and Yang: Causal relation between energ and GDP growth revisited : A dynamic panel data approach, Ecological Economics vol.67, 2007.
  9. Yoo: The causal relationship between electricity consumption and economic growth in the ASEAN countries, Energy Policy 34, 2006.
  10. Lee: Energy consumption and GDP in developing countries: A cointegrated panel analysis, Energy Economics 27, 2005.
  11. Asafu-Adjaye: The relationship between energy consumption, energy prices and economic growth: time series evidence from Asian developing countries, Energy Economics 22, 2000.
  12. Ghosh: Electricity Consumption and Economic Growth in India, Energy Policy, 2002.
  13. Soytas,U and R. Sari: Energy consumption and GDP: causality relationship in G-7 countries and emerging markets, Energy Economics, Vol.25, 2003.
  14. Yuan et al.: Energy consumption and economic growth: evidence from china at both aggregated and disaggregated levels, Ecological Economics, Vol.30, 2007.
  15. Shiu and Lam: Electricity consumption and economic growth in China,Energy Policy 32, 2004.
  16. Glasure and Lee: Cointegration, error correction and relationship between GDP and energy: the case of South Korea and Singapore. Energy Economics 20, 1997.
  17. Lee,C.C.,and Lee J.D.: A panel data analysis of the demand for total energy and electricity in OECD countries, Energy Journal 31, 2010.
  18. JeongHwan Jo.ManYok Gang: Causal Relationship between Electricity Consumption and Economic Growth in Korea, The Korean Journal of resource economics 21-3, 573-593, 2012.
  19. Engle R.F and C.W.J. Granger: "Cointegration and Error Correction:Representation, Estimation and Testing", Econometrica, 1987.
  20. Phillips,P.C.B: "Testing for a unit root in time series regression", Biometrika, Vol.75, 1988.
  21. Johansen, S.: "Estimation and hypothesis testing of cointegration vectors in Gaussian vectors autoregressive models", Econometrica 59 (6) 1551-1580, 1991. https://doi.org/10.2307/2938278