ECONOMIC GROWTH AND ELECTRICITY CONSUMPTION IN EMERGING COUNTRIES OF EUROPA: AN ARDL ANALYSIS

Abstract

The structure of energy intensity is not only important for the economists but also for the policymakers since it contributes to the policy debate on the link between energy use and economic growth and co-movement of the energy supply and growth policies. This study estimates the causal relationship between energy consumption and economic growth at per capita and aggregate levels for some transition countries in Europe; Albania, Belarus, Bulgaria, Czech Republic, Hungary, Lithuania, Poland, Romania and Slovakia.. The study also presents the income elasticities of total energy demand by using the ARDL (Auto Regressive Distributed Lag) method.