Paper Title
Causality Between Electricity Consumption And Output: Evidence From Indian States

Studies on causality between electricity consumption and economic growth has proliferated in the last two decades to find out whether electricity can be a binding constraint on growth and to assess the need for energy conservation policies. Given the conflicting results on the validity of the growth, conservation, neutrality and feedback hypothesis from time series studies, panel data studies have been preferred as they are based on a richer information set. However, the panel data studies have been made either for a set of developing, developed or a mix of both countries limiting their utility from a country specific policy perspective. One way to draw robust country specific inferences about causality is to employ panel methods for a single country by using state level data. Since there are no such studies, we fill this gap by studying causality relation between electricity consumption and output for 25 states of India over 1987-2010. This enriched analysis on India provides evidence in favour of the feedback hypothesis. Keywords— Electricity Consumption, Output and Causality