Abstract:

Consumption of electricity has been known in many countries to be correlated with economic activities. The reasons for increase of electricity demand are higher living standards and industrialization. Like in other developing countries, in Turkey, the demand for energy and electricity is growing rapidly due to social and economic developments and increase of the population of the country. In this paper, the Granger causality between electricity consumption, employment and Gross National Product is examined for Turkey using annual data covering the period 1970-2006. As economic growth, employment and electricity consumption variables used in empirical analysis have same order of integration (I(1)), Granger causality test is employed. In this study it was found that bidirectional causal relationship between employment and GNP in the short and long-run. In addition to, unidirectional causality running from GNP and employment to electricity consumption exists in the short and long-run

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