An Econometric Analysis of Electricity Production in Turkey
Cumhuriyet University Working Paper No. 01-03
11 Pages Posted: 27 Dec 2001
Date Written: December 2001
In this study, the long-run and short-run relationships between Turkish electricity production and its energy sources, thermal and hydro, is empirically examined using cointegration, error correction technique, and the FIML method. Additionally, the Granger Causality between the mentioned series is searched and the behavior of the variables for the next decade is forecasted. The time frame of the study is from 1970 to 1999. The results indicate that lignite based electricity production has a positive elasticity equal to approximately 1.5. It means that there is a close relationship between total electricity production and lignite consumption in long-run. Furthermore, the long-run coefficients are bigger and more meaningful than the short-run coefficients.
Keywords: Turkish Electricity Production, Cointegration, Error Correction Model, Granger Causality
JEL Classification: C32, L71, L94
Suggested Citation: Suggested Citation