Discussion Paper

No. 2012-29 | June 25, 2012
Disaggregate Energy Consumption and Industrial Output in Pakistan: An Empirical Analysis

Abstract

The study concentrates on the relationship between disaggregate energy consumption and industrial output in Pakistan by utilizing the Johansen Method of Cointegration. The results confirm the positive effect of disaggregate energy consumption on industrial output. Furthermore, bidirectional causality is identified in the case of oil consumption, whereas unidirectional causality running from electricity consumption to industrial output is observed. Moreover, unidirectional causality has been noticed from industrial output to coal consumption although there is no causality between gas consumption and industrial output. It is obvious that conservative energy policies could be harmful to the industrial production; therefore, the government has to develop innovative energy policies in order to meet the demand for energy. Additionally, the government has to pay serious attention to alternative energy sources such as solar and wind in order to boost the clean industrial growth.

Data Set

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The data set for this article can be found at: http://hdl.handle.net/1902.1/18410

JEL Classification

C32 Q42

Cite As

Ahmer Qasim Qazi, Khalid Ahmed, and Muhammad Mudassar (2012). Disaggregate Energy Consumption and Industrial Output in Pakistan: An Empirical Analysis. Economics Discussion Papers, No 2012-29, Kiel Institute for the World Economy. http://www.economics-ejournal.org/economics/discussionpapers/2012-29

Assessment



Comments and Questions


Anonymous - Referee Report 1
July 03, 2012 - 11:18

See attached file


Ahmer Qasim Qazi - Reply to Referee 1
July 07, 2012 - 20:50

I would like to thank anonymous referee for his valuable comments and suggestions. Please find an attachment in response of referee’s report.


Anonymous - Referee Report 2
August 07, 2012 - 16:38

See attached file


Ahmer Qasim Qazi - Reply to Referee 2
August 08, 2012 - 20:01

I would like to thank anonymous referee 2 for his comments and decision on the paper. Though, it is really surprising that the referee has rejected the paper without mentioning any major flaws in the paper. Please find an attachment in response to referee's report 2.


Anonymous - Referee Report 3
November 05, 2012 - 10:00

see attached file


Ahmer Qasim Qazi - Reply to Referee 3
November 16, 2012 - 16:08

I would like to thank anonymous referee 3 for his valuable comments and first-rate suggestions on the paper. The propositions would be strongly considered in the improved version of the paper. Please find an attachment in response of referee's report 3.