A causal relationship between energy consumption and economic growth in Nepal

摘要: In the present paper, an attempt is made to examine causal relationship between per capita consumption of coal, electricity, oil and total commercial energy real gross domestic product (GDP), using a co-integration vector error correction model. The increase in GDP, among other things, indicates higher demand for large quantity such as electricity. This implies that low infrastructure development limits usage energy, which may also hold back economic growth. Empirical findings reveal there unidirectional causality running from whereas GDP electricity found. It suggested input stimulates enhanced growth Nepal.