Nexus of Electricity Consumption, Economic Growth and CO2 Emissions: Evidence from Low and High-Income Countries

Using data from global low and high-income countries over 35 years (from 1980 to 2014), we tried to find the correlations between electricity consumption, economic development, and CO 2 emissions by employing the PVAR (Panel Vector Auto Regressive) model, impulse response function, and variance decomposition method.It demonstrates that electricity consumption and CO 2 are Granger reasons for economic growth in the two group countries, but GDP and CO 2 emissions can only guide the exploration of electricity energy in high-income countries.Technological differences between the two groups of countries lead to different costs in energy usage; low-income countries are unable to carry out electric energy innovation and revolution while high-income countries can.For sustainable development, lowincome countries should pay attention to the development and application of energy technologies, but not only GDP.