Özet:

Energy consumption, especially electricity consumption, has increased over the years as a result of economic development and has led these researchers and policy makers to focus on how electricity consumption contributes to economic growth. Since the issue suggests that energy policies should be carefully designed, it is often addressed in the context of the direction of causality. This study explores this relationship by applying horizontal-cutting analysis and using the data of 81 provinces of Turkey as empirical. The empirical results show that electricity consumption contributes positively to both income and value added levels. This finding suggests that electricity consumption is a potential boundary to growth and therefore demonstrates that the necessary measures should be taken without delay to maintain sufficient electricity production.