Energy and Economic Growth in Pakistan

Recent rise in energy prices, shrinking existing resources, and the search for alternative sources of energy and energy conservation technologies have brought into focus the issue of causality between energy use and economic growth. The results of this study show that energy expansion is expected to lead to higher growth and its shortage may retard the growth process. The impact of all sources of energy on economic growth is not the same. The impact of electricity and petroleum products as well as that of electricity only is high and statistically significant. However, the reverse causality is critical for the petroleum products.