Bolivia's Energy Consumption and Economic Growth Profile: Is There a Link?

Economy and Sociology, Vol. 9, No. 1, March 2016

8 Pages Posted: 14 Dec 2016

See all articles by Ismail Soile

Ismail Soile

University of Lagos; University of Dundee - Centre for Energy, Petroleum and Mineral Law & Policy (CEPMLP)

Dr. Kareem Arikewuyo

Kwara State University

Date Written: March 25, 2016

Abstract

The fundamental importance of energy for socio-economic existence cannot be over-emphasized. With an annual average growth rate of 3.6% over the period of 1998 and 2008, the Bolivian economic statistics shows that over 60% of the country’s GDP growth rate can be attributed to its export sector. However, energy consumption also grew significantly over the same period. Thus we seek to establish the directional causality between energy consumption and economic growth in Bolivia using secondary annual data for the period of 1971 to 2010. The Granger-causality tests indicate that there is an unidirectional causality that runs from economic growth to energy consumption with no feedback. The study, therefore, recommends that policies meant to manage growing energy demand can be instituted without obstructing growth in Bolivia. Energy taxation and pricing reform can help raise additional revenue for development.

Keywords: Economic Growth, Energy, Reform, Energy Consumption, Bolivia, Taxation

JEL Classification: N76, O10, Q01, Q40, Q41

Suggested Citation

Soile, Ismail and Arikewuyo, Kareem Abidemi, Bolivia's Energy Consumption and Economic Growth Profile: Is There a Link? (March 25, 2016). Economy and Sociology, Vol. 9, No. 1, March 2016. Available at SSRN: https://ssrn.com/abstract=2881886

Ismail Soile (Contact Author)

University of Lagos ( email )

Akoka
PMB 4491
Akoka, Lagos State 00234
Nigeria
+2348076184184 (Phone)

University of Dundee - Centre for Energy, Petroleum and Mineral Law & Policy (CEPMLP) ( email )

Nethergate
Dundee, Scotland DD1 4HN
United Kingdom

Kareem Abidemi Arikewuyo

Kwara State University ( email )

P.M.B. 1530
Ilorin
Malete, Kwara 234
Nigeria
+2348034061631 (Phone)

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