Relation Between Electricity Consumption and Economical Growth in Selected Exporting Oil Countries

The purpose of this study is to estimate the relationship between economic growth and electricity consumption growth in the selected oil exporting countries during 1972-2008 using both country time series and panel data. The empirical results based on panel data indicated that there is a mono-directional short-run causality running from electricity consumption growth to economic growth and a bi-directional long-run causality between electricity consumption growth and economic growth. The findings implied that economic growth in the selected exporting oil countries is highly depended to the electricity energy, and thus, electricity conservation policies will have a reverse effect on their economic growth.