Electricity consumption and economic growth: evidence from Pakistan

The objective of this study is to examine the long run relationship between real GDP per capita and electricity consumption for Pakistan over the period 1971 to 2010. The results reveal that there is unidirectional causality from electricity consumption to real GDP per capita. The findings of the study also show that there is long run relationship between real GDP per capita and electricity consumption. The results indicate a unidirectional causal relationship from real economic activity to electricity consumption at aggregate level indicating that economic development stimulates greater demand for electricity in the long-run.