Electricity Consumption, Co2 Emission and Economic Growth (1995-2014)

This study, the relationship between electricity consumption, carbon emission and economic growth is investigated. In the study, by using countries with carbon emissions above the world average in the period of 1995-2014, Panel Vector Autoregressive (VAR) technique was used. According to the results obtained from the panel VAR analysis, it was found that there was a negative and significant relationship between carbon emission and energy consumption. In addition, according to the results obtained from the causality test conducted in the study, one-way causality relationship was found between electricity consumption and CO2 emissions. According to these results, it can be interpreted that an improvement in electricity consumption in selected countries may affect carbon emissions. The countries involved should support investments in order to reduce emissions, do not adversely affect their economic growth and develop policies to ensure energy efficiency