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The causal relationship between electricity consumption and economic growth across states in the U.S.

Year: 2025

Type: dissertation

Abstract: This paper examines the causal relationship between electricity consumption and economic growth acrossfifty states in the United States. Only one study has investigated the relationship under the same study scope in theliterature. Using panel data of fifty states over the period from 1990 to 2017, the result shows that in the long run, a 1%increase in per capita electricity consumption (EC) significantly increases per capita gross domestic product (GDP) by0.85% (1.19%, 2.57%) by applying panel dynamic least squares (DOLS), panel fully modified least squares method(FMOLS), and panel autoregressive distributed lag (ARDL) model respectively. The positive impact of electricityconsumption on economic growth also holds in the short run. However, this relationship is both positive and negative forspecific state estimation. The causality test result also shows a uni-directional causality that runs from electricityconsumption to economic growth.

Source: Zenodo (CERN European Organization for Nuclear Research)

DOI: 10.5281/zenodo.15709071

Author: NGUYEN, NGOC TRAM

Language: English

Topic: Energy, Environment, Economic Growth

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Affordable and clean energy, Industry, innovation and infrastructure, Decent work and economic growth

Open Access status: green

OpenAlex ID: W6968319331

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