Regional Analysis of the Relationship between Electricity Consumption and Economic Growth in Turkiye
Neslihan Ursavas, Sukru Apaydin
article (Uluslararası, Hakemli) | Yazar(lar): Neslihan Ursavas, Sukru Apaydin | Yıl: 2025 | Dergi/Kurum: EKONOMI POLITIKA & FINANS ARASTIRMALARI DERGISI | İndeks: WOS.ESCI | DOI: 10.30784/epfad.1622810 | Anahtar Kelimeler: Electricity, Consumption, Economic Growth, Population Density, Human Capital, Causality Analysis
Electricity consumption is considered an important indicator for measuring the development level of countries. Various factors, such as economic growth, urbanization, and human capital, are associated with electricity consumption. In the literature, the relationship between electricity consumption and economic growth is explained through five different hypotheses: the conservation hypothesis, the energy-focused growth hypothesis, the feedback hypothesis, the neutrality hypothesis, and the preservation hypothesis. This study examines the causal relationship between electricity consumption and economic growth on a regional level in Turkiye. To do so, we apply the Granger causality analysis developed by Juodis, Karavias, and Sarafidis (2021) for 81 provinces over the 2008-2021 period. This method allows for both univariate and multivariate causality analyses. The findings indicate a unidirectional causality relationship from electricity consumption to economic growth for provinces in Turkiye. This result suggests that the energy-focused growth hypothesis is valid for Turkiye. Furthermore, the study reveals a unidirectional causality from population density to economic growth and a bidirectional causality between human capital and economic growth.