A Structural VAR Analysis of Electrical Energy Consumption and Real Gross Domestic Product: Evidence from Turkey

Sabri Azgun

Abstract


This paper examines the relationship between the aggregate electricity consumption, the sub-components of electricity consumption (industrial electricity consumption, residential and commercial, government offices and street illuminations) and real gross domestic product by means of a structural VAR model for the Turkish economy. The main purpose of the paper is to examine the impact of the aggregate electricity consumption innovations and the sub-components of electricity consumption innovations on real gross domestic product. The impact of real gross domestic product innovations on the aggregate electricity consumption and the sub-components of electricity energy consumption is also analyzed. Both the structural factorization results and impulse-response functions show that aggregate electricity consumption shocks and the sub-components shocks of electricity consumption has not fluctuate real gross domestic product, while real gross domestic product innovations affect the total electrical energy consumption and the sub-components of electricity consumption.


Full Text: PDF DOI: 10.5539/ijef.v3n5p161

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This work is licensed under a Creative Commons Attribution 3.0 License.

International Journal of Economics and Finance  ISSN  1916-971X (Print) ISSN  1916-9728 (Online)

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