The effects of electricity production on industrial development and sustainable economic growth: A VAR analysis for BRICS countries

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Yu Z., Liu W., Chen L., ETİ S., DİNÇER H., YÜKSEL S.

Sustainability (Switzerland), cilt.11, sa.21, 2019 (SCI-Expanded) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 11 Sayı: 21
  • Basım Tarihi: 2019
  • Doi Numarası: 10.3390/su11215895
  • Dergi Adı: Sustainability (Switzerland)
  • Derginin Tarandığı İndeksler: Science Citation Index Expanded (SCI-EXPANDED), Social Sciences Citation Index (SSCI), Scopus
  • Anahtar Kelimeler: sustainability, electricity, sustainable economic growth, industry, BRICS
  • İstanbul Medipol Üniversitesi Adresli: Evet

Özet

This study aims to evaluate the effect of electricity production on industrial development and sustainable economic growth. In this context, Brazil, Russia, India, China, and South Africa (BRICS), countries which have the highest increase in electricity production in the period of 2000-2018, are included in the scope of this study. Annual data of these variables in the period of 1991-2018 are used and three different models are created by using Vector Auto Regression (VAR) methodology. The findings state that electricity production in BRICS countries has a positive effect on both industrial production and sustainable economic growth. Hence, electricity production needs to be increased for them. For this purpose, it is important to encourage investors with tax advantages, location orientation and financing. Moreover, BRICS countries should give importance to renewable energy investments in order to increase electricity production. These issues have a contributing effect to sustainable economic growth.