Causal relationship between electricity consumption and economic growth in Assam, India

Nibedita Mahanta, Ruma Talukdar

Abstract


The aim of this study is to find the causal relationship between electricity consumption (EC) and economic growth in terms of Gross State Domestic Product (GSDP) in Assam considering the time period 1980-81 to 2018-19 with the help of Granger Causality Test. The stationarity of the series are tested through the Augmented Dickey Fuller (ADF) and Phillips Perron (PP) tests and reveal that both the series become stationary in first order differences but the result of Johansen Cointegration test indicates  no cointegration between them. Applying Granger Causality test, no causal relationship is observed in either direction between EC and GSDP during the considered time period in Assam implying that energy conservation policies may not harm the economic growth in Assam.

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Published: 2022-03-14

How to Cite this Article:

Nibedita Mahanta, Ruma Talukdar, Causal relationship between electricity consumption and economic growth in Assam, India, J. Math. Comput. Sci., 12 (2022), Article ID 107

Copyright © 2022 Nibedita Mahanta, Ruma Talukdar. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

 

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