The Impact of Energy Poverty on Economic Growth in Eco Countries: A Panel Data Analysis

Energy poverty or difficulties in accessing energy play a critical role in ensuring sustainable economic growth. This study aims to analyze the long-term relationship between energy poverty and economic growth in the Economic Cooperation Organization (ECO) member countries (Türkiye, Turkmenistan, Tajikistan, Iran, Pakistan, Uzbekistan, Kazakhstan, Kyrgyzstan, and Azerbaijan). Using panel data from the period 1993-2022, the analysis identified a cointegration relationship between the variables; long-term effects were examined using the Common Correlated Effects (CCE) estimator, while causality relationships were analyzed using the Granger causality test developed by Juodis, Karavias, and Sarafidis (JKS, 2021). The findings of the CCE estimator across the panel reveal that access to energy has a generally positive and statistically significant effect on economic growth. At the country level, this effect is significant in Türkiye, Tajikistan, Iran, Pakistan, and Uzbekistan, while it does not reach the level of significance in other countries. Additionally, the results of the Granger causality test by JKS (2021) indicate a bidirectional causality relationship between energy poverty and economic growth. Within this framework, it is concluded that energy access policies play a supportive role in economic development and that economic growth may have a mitigating effect on energy poverty.