Causality Between Electricity Consumption and Sector Economic Growth: Evidence from Taiwan

• Main Authors: Shun-sheng Ke, 柯舜升
• Other Authors: Song-zan Chiou-Wei
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/59093504445767835433

碩士 === 南華大學 === 管理經濟學系經濟學碩士班 === 97 === 　　The co-integration and error correction method were applied using 1961-2007 data for Taiwan to examine causality between electricity consumption and, respectively, GDP, service GDP (SGDP) and Non-service GDP (NGDP). The results indicate that there is a bi-directional causality between electricity consumption and GDP, implying that an increase in electricity consumption directly affects economic growth and that economic growth also simulates further electricity consumption. However, unidirectional causality runs from SGDP to electricity consumption. Thus, electricity conservation policies can be initiated without deteriorating service sector economic side effects. There is a bi-directional causality between electricity consumption and NGDP, which means that an increase in electricity consumption directly affects non-service economic growth and that non-service economic growth also simulates further electricity consumption.