Modeling Electricity Consumption for Growth in an Open Economy
The purpose of this paper is to analyze the long run equilibrium relationship of electricity consumption in Italy from a unique perspective, taking tourism expansion as a proxy for exogenous growth. The sample used is annual data covering the period 1990-2018. The Autoregressive Distributed Lag (AR...
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| Format: | Article |
| Language: | English |
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EconJournals
2022-03-01
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| Series: | International Journal of Energy Economics and Policy |
| Subjects: | |
| Online Access: | https://econjournals.com/index.php/ijeep/article/view/12752 |
| _version_ | 1797906086304415744 |
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| author | Pavlos Stamatiou |
| author_facet | Pavlos Stamatiou |
| author_sort | Pavlos Stamatiou |
| collection | DOAJ |
| description |
The purpose of this paper is to analyze the long run equilibrium relationship of electricity consumption in Italy from a unique perspective, taking tourism expansion as a proxy for exogenous growth. The sample used is annual data covering the period 1990-2018. The Autoregressive Distributed Lag (ARDL) bounds testing approach and the causality method of Toda and Yamamoto (1995) are applied, as the most appropriate for the integration of the variables and the sample size. The ARDL results, as well as additional cross checking test, reveal a long run relation between electricity consumption, foreign tourist arrivals and economic growth in the country. Foreign tourist arrivals and economic growth have significant impact on electricity consumption, both in the short and in the long run. Τhe causality results support unidirectional causalities running from foreign tourist arrivals and economic growth to electricity consumption. In addition, foreign tourist arrivals influence electricity consumption both directly and indirectly through economic growth. Policy implications are further discussed.
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| first_indexed | 2024-04-10T10:15:29Z |
| format | Article |
| id | doaj.art-3d25b8def7c443edbc67507ffd1e85ab |
| institution | Directory Open Access Journal |
| issn | 2146-4553 |
| language | English |
| last_indexed | 2024-04-10T10:15:29Z |
| publishDate | 2022-03-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Energy Economics and Policy |
| spelling | doaj.art-3d25b8def7c443edbc67507ffd1e85ab2023-02-15T16:21:54ZengEconJournalsInternational Journal of Energy Economics and Policy2146-45532022-03-0112210.32479/ijeep.12752Modeling Electricity Consumption for Growth in an Open EconomyPavlos Stamatiou0Department of Accounting and Finance, University of Macedonia, Thessaloniki, Greece The purpose of this paper is to analyze the long run equilibrium relationship of electricity consumption in Italy from a unique perspective, taking tourism expansion as a proxy for exogenous growth. The sample used is annual data covering the period 1990-2018. The Autoregressive Distributed Lag (ARDL) bounds testing approach and the causality method of Toda and Yamamoto (1995) are applied, as the most appropriate for the integration of the variables and the sample size. The ARDL results, as well as additional cross checking test, reveal a long run relation between electricity consumption, foreign tourist arrivals and economic growth in the country. Foreign tourist arrivals and economic growth have significant impact on electricity consumption, both in the short and in the long run. Τhe causality results support unidirectional causalities running from foreign tourist arrivals and economic growth to electricity consumption. In addition, foreign tourist arrivals influence electricity consumption both directly and indirectly through economic growth. Policy implications are further discussed. https://econjournals.com/index.php/ijeep/article/view/12752Foreign Tourist ArrivalsElectricity ConsumptionEconomic GrowthARDL Cointegration TestToda-Yamamoto Causality Test |
| spellingShingle | Pavlos Stamatiou Modeling Electricity Consumption for Growth in an Open Economy International Journal of Energy Economics and Policy Foreign Tourist Arrivals Electricity Consumption Economic Growth ARDL Cointegration Test Toda-Yamamoto Causality Test |
| title | Modeling Electricity Consumption for Growth in an Open Economy |
| title_full | Modeling Electricity Consumption for Growth in an Open Economy |
| title_fullStr | Modeling Electricity Consumption for Growth in an Open Economy |
| title_full_unstemmed | Modeling Electricity Consumption for Growth in an Open Economy |
| title_short | Modeling Electricity Consumption for Growth in an Open Economy |
| title_sort | modeling electricity consumption for growth in an open economy |
| topic | Foreign Tourist Arrivals Electricity Consumption Economic Growth ARDL Cointegration Test Toda-Yamamoto Causality Test |
| url | https://econjournals.com/index.php/ijeep/article/view/12752 |
| work_keys_str_mv | AT pavlosstamatiou modelingelectricityconsumptionforgrowthinanopeneconomy |