Electricity consumption and economic growth: Bounds and causality analyses of OPEC members

This paper investigates the relationship between electricity consumption and economic growth for OPEC members. The bounds test yields evidence of a long-run relationship between electricity consumption and economic growth for all OPEC members. Causality results suggest that economic growth is dependent on electricity consumption in five countries, less dependent in three countries, and independent in three countries. Because these countries do not necessarily share similar political and economic traits, no single universal policy implication can be inferred from the results. The disparities across these causality results, therefore, stress the importance of formulating causality explanations while taking into account the particularities of individual countries rather than blindly applying the conventional interpretations.