The Impact of Energy Poverty on Economic Growth: Evidence from EAGLE Countries

Abstract

Aim: The aim of this study is to examine the impact of energy poverty on economic growth in EAGLE countries for the period 2000–2020. Energy poverty is addressed primarily through access to electricity. Method: The Han and Phillips (2010) method is employed in the analysis. In addition to energy poverty, total labor force, urbanization, patent applications, and carbon emissions are included in the model to evaluate their effects on economic growth Results: A statistically significant and positive relationship is found between access to electricity and economic growth. Moreover, total labor force, urbanization, and carbon emissions also have a significant and positive effect on economic growth. Although patent applications show a positive impact, this effect is statistically insignificant. Conclusion: The findings reveal that access to electricity plays a critical role in fostering economic growth and socio-economic development in EAGLE countries. Improved energy access supports technological advancement and increased use of electric power, making it a fundamental driver of economic growth.

Keywords

• Energy poverty
• Economic growth
• Eagle countries
• Access to electricity
• Panel data

Enerji Yoksulluğunun Ekonomik Büyüme Üzerindeki Etkisi: EAGLE Ülkelerinden Kanıtlar

Abstract

Amaç: Bu çalışmanın amacı, EAGLE ülkelerinde enerji yoksulluğunun ekonomik büyüme üzerindeki etkisini 2000-2020 dönemi için incelemektir. Enerji yoksulluğu, özellikle elektriğe ulaşım düzeyi üzerinden ele alınmıştır. Yöntem: Analizlerde Han ve Phillips (2010) yöntemi kullanılmış; enerji yoksulluğunun yanı sıra toplam işgücü, kentleşme, patent başvuruları ve karbon emisyonları da modele dahil edilerek bu değişkenlerin ekonomik büyüme üzerindeki etkileri değerlendirilmiştir. Bulgular: Elektriğe erişim ile ekonomik büyüme arasında istatistiki olarak anlamlı ve pozitif bir ilişki tespit edilmiştir. Ayrıca toplam işgücü, kentleşme ve karbon emisyonları da ekonomik büyüme üzerinde pozitif ve anlamlı etkiler göstermektedir. Patent başvuruları ise pozitif yönde etki göstermesine rağmen, bu etkinin istatistiki olarak anlamlı olmadığı bulunmuştur. Sonuç: Elde edilen bulgular, EAGLE ülkelerinde elektriğe erişimin ekonomik büyüme ve sosyo-ekonomik kalkınma açısından kritik bir rol oynadığını ortaya koymaktadır. Enerjiye erişimin artması, teknolojik gelişmeleri ve elektrik enerjisi kullanımını teşvik ederek ekonomik büyümeyi destekleyen temel bir unsur haline gelmektedir.

Keywords

• Enerji yoksulluğu
• Ekonomik büyüme
• Eagle ülkeleri
• Elektriğe ulaşım
• Panel veri

References

1. AHMAD, F., DRAZ, M., SU, L., OZTURK, I., RAUF, A. and ALI, S. (2019). Impact of FDI inflows on poverty reduction in the ASEAN and SAARC economies. Sustainability, 11(9), 2565.
2. ALTER, N. and SYED, S. H. (2011). An empirical analysis of electricity demand in Pakistan. International Journal of Energy Economics and Policy, 1(4), 116-139.
3. ÂMIN, A., LIU, Y., YU, J., CHANDIO, A. A., RASOOL, S. F., LUO, J. and ZAMAN, S. (2020). How does energy poverty affect economic development? A panel data analysis of South Asian countries. Environmental Science and Pollution Research, 1(13), 31623-31635.
4. ANSARI, M. A., VILLATHENKOSATH, M. A., AKRAM, V. and RATH, B. N. (2022). The nexus between ecological footprint, economic growth, and energy poverty in sub-Saharan Africa: a technological threshold approach. Environment, Development and Sustainability, 25(8), 7823-7850.
5. ARELLANO, M. and BOND, S. (1991). Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. The Review of Economic Studies, 58(2), 277-297.
6. ARELLANO, M. and BOVER, O. (1995). Another look at the instrumental variable estimation of error-components models. Journal of Econometrics, 68(1), 29-51.
7. BALTAGI, B. H. (2005). Econometric analysis of panel data. England: John Wiley&Sons Ltd.
8. BARIŞ, S. and DEMİR, D. (2023). Gelişmekte olan ülkelerde gelir eşitsizliği enerji yoksulluğunun belirleyicisi mi? Journal of Emerging Economies and Policy, 8(2), 371-384.

9. BARNES, D. (2010). The concept of energy poverty. Available at: http://www.energyfordevelopment.com/2010/06/energy-poverty.html.
10. BAYRAMOĞLU, A. T. and YURTKUR, A. K. (2016). Türkiye’de karbon emisyonu ve ekonomik büyüme ilişkisi: Doğrusal olmayan eşbütünleşme analizi. Bolu Abant İzzet Baysal Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, 16(4), 31-46.
11. BBVA (2012). BBVA EAGLES Annual Report 2012. Available at: https://www.bbvaresearch.com/en/publicaciones/bbva-eagles-annual-report-2012/.
12. BECKER, G. S., MURPHY, K. M. and TAMURA, R. (1990). Human capital, fertility, and economic growth. Journal of Political Economy, 98(5), 12-37.
13. BLUNDELL, R. and BOND, S. (1998). Initial conditions and moment restrictions in dynamic panel data models. Journal of Econometrics, 87(1), 115-143.
14. ÇALIŞKAN, H. and ÖZTÜRK, S. (2019). Kentleşme gelişiminin ekonomik büyüme üzerine etkisi: Türkiye örneği. Iğdır Üniversitesi Sosyal Bilimler Dergisi, (17), 677-694.
15. DOĞAN, E. and DOĞAN, B. Ö. (2023). Sürdürülebilir kalkınmada demokrasi etkili mi? E7 ülkelerinden ampirik kanıtlar. Uluslararası Ekonomi İşletme ve Politika Dergisi, 7(2), 341-351.
16. EKE, E. U. (2012). Enerji yoksulluğunun giderilmesine yönelik sosyal politikalar. (Yüksek Lisans Tezi). Hacettepe Üniversitesi, sosyal Bilimler Enstitüsü, Ankara.
17. EKE, E. U. and Ayrancı, E. (2018). Türkiye’de elektrik enerjisi sektörünün enerji yoksulluğu açısından değerlendirilmesi. Politik Ekonomik Kuram, 2(2), 109-129.
18. EU (2022). Report From the Commission to the European Parliament, the Council, the European Economic and Social Committee and The Committee of The Regions State of the Energy Union. Brussels, 18.10.2022 COM (2022) 547 Final. (30.07.2024).
19. FANKHAUSER, S., RODIONOVA, Y. and FALCETTI, E. (2008). Utility payments in Ukraine: Affordability, subsides and arrears. Energy Economics, 36(11), 4168-4177.
20. FILIPPIDIS, M., TZOUVANAS, P. and CHATZIANTONIOU, I. (2021). Energy poverty through the lens of the energy-environmental Kuznets curve hypothesis. Energy Economics, 100 (2021), 105328.
21. FOSTER, V. and YEPES, T. (2006). Is cost recovery a feasible objective for water and electricity? The Latin American Experience. Washington, DC: World Bank Policy Research Working Paper 3943.
22. GREENE W. (2007). Econometric analysis. 6th edition. New York: Macmillan Publishing Company Inc.
23. GROSS, J. and OUYANG, Y. (2021). Types of urbanization and economic growth. International Journal of Urban Sciences, 25(1), 71-85.
24. GÜLLÜ, M. and YAKIŞIK, H. (2017). Karbon emisyonu ve enerji tüketiminin büyüme üzerindeki etkileri: MIST ülkeleri karşılaştırması. Sosyoekonomi, 25(32), 239-253.
25. HAN, C. and PHILLLIPS, P. C. (2010). GMM estimation for dynamic panels with fixed effects and strong instruments at unity. Econometric Theory, 26(1), 119-151.
26. HARMELINK, M. (2020). The potential power of different levels of energy access to reduce poverty, improve health, education and gender equality. 2020 Energy Evaluation Europe Conference, 1-15, London, UK
27. INTERNATIONAL ENERGY AGENCY (IEA) (2022). World Energy Outlook 2022. Paris: International Energy Agency. Retrieved from https://www.iea.org/reports/world-energy-outlook-2022
28. JONES G. and SCHNEIDER W. (2006) Intelligence, human capital, and economic growth: A Bayesian averaging of classical estimates (BACE) approach. Journal of Economic Growth, 11, 71-93.
29. KARAKI, F. J. (2023). The impact of manufacturing, investment, labor force and technology on economic growth in Palestine. Journal of Economics, Finance and Accounting Studies, 5(3), 164-173.
30. KATOCH, O. R., SHARMA, R., PARİHAR, S. and NAWAZ, A. (2024). Energy poverty and its impacts on health and education: a systematic review. International Journal of Energy Sector Management, 18(2), 411-431.
31. KÖKTAŞ, A. and SELÇUK, İ. Ş. (2018). AB ve Türkiye’de enerji yoksulluğu. Politik Ekonomik Kuram, 2(2), 95-108.
32. LEE, C. C., & CHANG, C. P. (2008). Energy consumption and economic growth in Asian economies: A more comprehensive analysis using panel data. Resource and Energy Economics, 30(1), 50-65. https://doi.org/10.1016/j.reseneeco.2007.06.002
33. MANGA, M. (2020). Enerji yoksulluğu ve ekonomik büyüme ilişkisi. Bulletin of Economic Theory and Analysis, 5(2), 101-114.
34. MITZE, T. (2010). Estimating gravity models of international trade with correlated time fixed regressors: To IV or not IV. MPRA Paper, No. 23540. 26.
35. MORTON, S., PENCHEON, D., and SQUIRES, N. (2017). Sustainable Development Goals (SDGs), and their implementation: A national global framework for health, development and equity needs a systems approach at every level. British Medical Bulletin, 124(1), 81-90.
36. MUNYANYI, M. E. and AWAWORYI CHURCHILL, S. (2022). Foreign aid and energy poverty: Sub-national evidence from Senegal. Energy Economics, 108.
37. OZTURK, I. (2010). A literature survey on energy–growth nexus. Energy Policy, 38(1), 340-349. https://doi.org/10.1016/j.enpol.2009.09.024
38. ÖZÇAĞ, M., BOZDAĞLIOĞLU, E. Y. and KÜÇÜKKAYA, H. (2019). Geçiş ekonomilerinde doğrudan yabancı yatırımların ekonomik büyüme üzerine etkisi: Dinamik panel veri analizi. Business and Economics Research Journal, 10(1), 41-54.
39. ÖZCAN, S. E. and ÖZER, P. (2018). Ar-Ge harcamaları ve patent başvuru sayısının ekonomik büyüme üzerindeki etkileri: OECD ülkeleri üzerine bir uygulama. Anadolu Üniversitesi Sosyal Bilimler Dergisi, 18(1), 15-28.
40. ÖZTÜRK, Y. K., ve ÇELİK, B. (2023). Yeni sanayileşen ülkelerde (N11) enerji yoksulluğu ve ekonomik büyüme ilişkisi. Erciyes Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, (64), 47-51.
41. PAUDEL, R. C. and PERERA, N. (2009). Foreign debt, trade openness, labor force and economic growth: evidence from Sri Lanka. The ICFAI Journal of Applied Economics, 8 (1), 57-64.
42. PEREIRA, M. G., FREITAS, M. and Da SILVA, N. F. (2010). Rural electrification and energy poverty: Empirical evidences from Brazil. Renewable and Sustainable Energy Reviews, 14(4), 1229-1240.
43. REHMAN, A. and DEYUAN, Z. (2018). Investigating the linkage between economic growth, electricity access, energy use, and population growth in Pakistan. Applied sciences, 8(12), 2442.
44. ROMERO-JORDÁN, D., DEL RIO, P. and PEÑASCO, C. (2016). An analysis of the welfare and distributive implications of factors influencing household electricity consumption. Energy Policy, 88, 361–370.
45. SADORSKY, P. (2010). The impact of energy consumption on economic growth in emerging economies. Energy Economics, 32(1), 143-149. https://doi.org/10.1016/j.eneco.2009.10.003
46. SARWAR S, CHEN W. and WAHEED R. (2017). Electricity consumption, oil price and economic growth: Global perspective. Renewable and Sustainable Energy Reviews, (76), 9–18.
47. SHARMA, G. and KARNAMADAKALA RAHUL, C. (2016). Energy poverty: Electrification and well-being. Nature Energy, 1(11), 1-2.
48. SILVA, P., KLYTCHNIOVA, I. and RADEVIÇ, D. (2007). Poverty and environmental impacts of electricity price reforms in Montenegro. Norfolk, UK: Center for Competition Policy Working Paper.
49. SINGH, K. and INGLESI-LOTZ, R. (2021). The role of energy poverty on economic growth in sub-Saharan African countries. Economics of Energy & Environmental Policy, 10(1), 105–122. SOLOW, R. M. (1956). A contribution to the theory of economic growth. The Quarterly Journal of Economics, 70(1), 65-94.
50. SON, H. and YOON, S. (2020). Reducing energy poverty: Characteristics of household electricity use in Vietnam. Energy for Sustainable Development, 59, 62-70.
51. TABACHNICK, B. G., FIDELL, L. S. and ULLMAN, J. B. (2013). Using Multivariate Statistics. Boston, MA: Pearson.
52. TATLI, H. and BARAK, D. (2019). Elektriğe erişimin ekonomik büyüme üzerindeki etkisi: Türkiye’deki kanıtlar. 2. Uluslararası Sosyal Bilimler ve İnovasyon Kongresi, 345–356. Elazığ.
53. TATOĞLU, F. Y. (2013). Panel veri ekonometrisi: Stata uygulamalı. Beta Yayınları.
54. TIAN, J., HUANG, W., ZHAO, Z. and PENG, J. (2024). The role of Chinese-style fiscal decentralization in promoting synergistic carbon and haze governance: Insights from technological innovation. Environmental Science and Pollution Research, 31(25), 36417-36439.
55. TUNA, Y. and CERİTLİ, İ. (1997). Kentsel kalkınma sürecinde kent ekonomisinin işlevleri ve sorunları. Çağdaş Yerel Yönetimler, 6(4), 19-44.
56. UNITED NATION (UN), (2017). Sustainable Development Goals- Sustainable goals agenda Goal 7: Ensure access to affordable sustainable and modern energy for all: reliable. Available at: https://www.un.org/en/chronicle/article/goal-7-ensure-access-affordable-reliable-sustainable-and-modern-energy-all.
57. UNITED NATION (UN), (2019). Report of the Secretary-General, Special edition: Progress towards the sustainable development goals. Available at: https://sdgs.un.org/documents/special-edition-progress-towards-sustainable-25359.
58. WOOLDRIDGE, J. M. (2003). Econometric analysis of cross section and panel data. MIT press.