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Journals / Finans Politik ve Ekonomik Yorumlar Dergisi / 2013 / Cilt: 50 - Sayı: 578

The relationship between electricity consumption and income in OECD countries: Cointegration tests

OECD Ülkelerinde elektrik tüketimi ile gelir arasındaki ilişki: Eşbütünleşme testleri

AYTAÇ PEKMEZCİ
Pages
97–108
DOI
—
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AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

In conclusion, according to EG test, while there was no cointegration relationship between the variables of 19 OECD countries, according to $\lambda_{max}$ and $\lambda_{trace}$ tests, it was observed that there was a long term cointegration relationship from electricity consumption towards income in Portugal, but in Luxembourg the reverse was the case.

📌 3 Key Takeaways

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Objective & Hypothesis:In this study, the relationship between the variables, studied by using data of 19 OECD countries for the period 1960-2010 to determine whether there is a long term relationship between national income per person and electricity consumption per person, was examined through cointegration tests (Engle-Granger, Johansen $\lambda_{max}$ and $\lambda_{trace}$ ) and the results were assessed.
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Key Findings & Data:Furthermore, in order to ascertain the direction of the relationship between the variables, Granger causality analysis was applied.
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Conclusion & Impact:In conclusion, according to EG test, while there was no cointegration relationship between the variables of 19 OECD countries, according to $\lambda_{max}$ and $\lambda_{trace}$ tests, it was observed that there was a long term cointegration relationship from electricity consumption towards income in Portugal, but in Luxembourg the reverse was the case.
🔬Design:Research Article
📍Scope:2010 Verileri
⚙️Variables:Domain Parameters

Abstract

In this study, the relationship between the variables, studied by using data of 19 OECD countries for the period 1960-2010 to determine whether there is a long term relationship between national income per person and electricity consumption per person, was examined through cointegration tests (Engle-Granger, Johansen $\lambda_{max}$ and $\lambda_{trace}$ ) and the results were assessed. Furthermore, in order to ascertain the direction of the relationship between the variables, Granger causality analysis was applied. In conclusion, according to EG test, while there was no cointegration relationship between the variables of 19 OECD countries, according to $\lambda_{max}$ and $\lambda_{trace}$ tests, it was observed that there was a long term cointegration relationship from electricity consumption towards income in Portugal, but in Luxembourg the reverse was the case.

Özet

Bu çalışmada, kişi başına düşen elektrik tüketimi ile kişi başına düşen milli gelir arasında uzun dönemli ilişki olup olmadığı belirlenmeye çalışılmıştır. Bu amaca yönelik olarak 1960-2010 dönemi için 19 OECD ülkesine ait veriler kullanılmıştır. İncelenen değişkenler arasındaki ilişki eşbütünleşme testleri (Engle-Granger, Johansen $\lambda_{max}$ ve $\lambda_{trace}$) ile araştırılmış ve elde edilen sonuçlar değerlendirilmiştir. Ayrıca değişkenler arasındaki ilişkinin yönünü belirlemek, geliştirilecek enerji politikaları için önemli olduğundan Granger nedensellik analizi uygulanmıştır. Sonuç olarak arasında EG testine göre 19 OECD ülkesinin değişkenleri arasında eşbütünleşme ilişkisi yokken $\lambda_{max}$ ve $\lambda_{trace}$ testlerine göre Portekiz’de elektrik tüketiminden gelire doğru ve Lüksemburg’da ise gelirden elektrik tüketiminde doğru uzun dönemli eşbütünleşme ilişkisinin olduğu görülmüştür.

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Cite This Article

PEKMEZCİ, A. (2013). The relationship between electricity consumption and income in OECD countries: Cointegration tests. Finans Politik ve Ekonomik Yorumlar Dergisi, Cilt: 50 - Sayı: 578, 97–108. https://ajindex.com/articles/215352

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