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An Analysis on the Causal Relation Between Electricity Consumption and GDP by industries in KOREA

한국의 산업별 전력소비와 경제성장간 인과관계 분석

  • Received : 2016.01.15
  • Accepted : 2016.02.03
  • Published : 2016.03.31

Abstract

In these days global energy policy is changed from "supply" to "demand". In this regards, there are needs to analysis on effect of policy such as energy efficiency strategy, electricity rates. This study examines the relationship between energy consumption reduced by new energy policy and GDP growth for each industrial sector for Korea from 1970 to 2013. With respect to the direction of causality, energy use of 1th industry like agriculture and mining leads to GDP growth. On the other hand, GDP growth of 2nd industry, manufacturing, leads to energy use. And there is bidirectional causality in 3rd industry, service sector. These findings imply that the government policies aimed at reducing electricity consumptions and increasing energy efficiency should be progressed cautiously depend on status of each industry condition.

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