Linear and nonlinear Granger causality between electricity production and economic performance in Mexico

B-Tier
Journal: Energy Policy
Year: 2020
Volume: 142
Issue: C

Authors (2)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Understanding the Granger causality directions between electricity production (EP) and Gross Domestic Product (GDP) is helpful for policymakers in order to design, redesign, and implement effective energy policies. Although there are plenty of studies on this issue, no consistent conclusion about said relationship exists. In this paper, we provide an updated analysis for the case of Mexico in the context of the design and implementation of a new energy policy. We employ three tests, 2 linear and one nonlinear, and find no evidence of causal relation, in a Granger sense, between EP and GDP for the 1965–2018 period. Our results suggest that Mexican policymakers should consider enriching the bill by further designing policies that directly seek to promote a self-sufficient electricity sector by enhancing generation output by private actors and transmission capacity.

Technical Details

RePEc Handle
repec:eee:enepol:v:142:y:2020:i:c:s0301421520302263
Journal Field
Energy
Author Count
2
Added to Database
2026-01-29