1 AIT Asian Institute of Technology

Energy consumption and economic growth in Pakistan : a causality analysis

AuthorMahmood, Arshad
Call NumberAIT RSPR no.ET-10-02
Subject(s)Energy consumption--Pakistan

NoteSubmitted in partial fulfillment of the requirements for the degree of Master of Engineering in Energy
PublisherAsian Institute of Technology
Series Statement
AbstractThis study examines causal relationship between energy/electricity consumption and economic growth in Pakistan for the period of 1971 to 2007 within a multivariate framework by including labor force and capital variables. The bound test provides evidence of co integration in energy/GDP model when capital is used as endogenous variable and in electricity/GDP model when electricity consumption, labor force and capital are used as endogenous variables. Causality Results indicate that GDP cause electricity consumption, labor force and capital; labor force cause electricity consumption whereas capital and labor force have bidirectional causal relationship in the long run. For short-run, there exists unidirectional causality running from economic growth and labor force to both energy and electricity consumption and from economic growth to gross capital formation. There is also evidence of feedback causality between electricity consumption and capital. The analysis implies that both in short-run and long-run energy conservation policies can be implemented without having any adverse impact on economic development of the country and thus sustainable future with less CO₂ emissions may be feasible
Year2010
Corresponding Series Added Entry
TypeResearch Study Project Report (RSPR)
SchoolSchool of Environment, Resources, and Development (SERD)
DepartmentDepartment of Energy and Climate Change (Former title: Department of Energy, Environment, and Climate Change (DEECC))
Academic Program/FoSEnergy Technology (ET)
Chairperson(s)Marpaung, Charles
Examination Committee(s)Salam, P. Abdul;Singh, Jai Govind
Scholarship Donor(s)Higher Education Commission (HEC), Pakistan – Asian Institute of Technology Fellowship
DegreeResearch Studies Project Report (M. Eng.) - Asian Institute of Technology, 2010


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