Growth, Electric Power Consumption Externalities and Patterns of Localisation of Emissions

Aims: To elaborate on dimensions of Electric Consumption and patterns of localization.

Study Design: Investigate spatial, economic, electric and environmental spillovers.

Place and Duration of Study: Chicago, USA. Department of Finance, between September 2017 and September 2018.

Methodology: This paper examines the causality relationship between the electric power consumption externalities and economic growth in 89 countries using data from the period 1990 to 2014. The spatial econometric approach is employed to identify neighbouring relationships.

Results: Results with estimated spatial, economic and environmental weights present a potential comparison among the effects of different types of spillovers relative to the geographical clusters. In other words, they examine the role of externalities across countries in the process of energy consumption by estimating the empirical counterpart models.

Conclusion: The effect of regional externalities of energy consumption pattern on GDP growth is verified through spatial, economic and environmental channels.