A Structural VAR Analysis of Electrical Energy Consumption and Real Gross Domestic Product: Evidence from Turkey

摘要

This paper examines the relationship between the aggregate electricity consumption, the sub-components of electricity consumption (industrial electricity consumption, residential and commercial, government offices and street illuminations) and real gross domestic product by means of a structural VAR model for the Turkish economy. The main purpose of the paper is to examine the impact of the aggregate electricity consumption innovations and the sub-components of electricity consumption innovations on real gross domestic product. The impact of real gross domestic product innovations on the aggregate electricity consumption and the sub-components of electricity energy consumption is also analyzed. Both the structural factorization results and impulse-response functions show that aggregate electricity consumption shocks and the sub-components shocks of electricity consumption has not fluctuate real gross domestic product, while real gross domestic product innovations affect the total electrical energy consumption and the sub-components of electricity consumption.