Convergence of Electricity Consumption in Turkey: Spatial Panel Data Analysis

  • Gülsüm Akarsu Ondokuz Mayıs University, Faculty of Economic and Administrative Sciences
  • Burcu Berke Niğde Ömer Halisdemir University, Faculty of Economic and Administrative Sciences

Abstract

The issue of convergence has been discussed in many theoretical and empirical studies. Because per capita electricity consumption is considered as an indication of economic development, this study aims to determine the presence of “absolute and conditional beta (β) convergence” of per capita total electricity consumption across the provinces of Turkey between 1986 and 2013. This work is the first investigation of electricity consumption convergence in Turkey. Based on the annual balanced panel data and the spatial panel data model, our findings indicate absolute β convergence of per capita electricity consumption across the provinces of Turkey. We conclude that regional policies are successful in reducing regional disparities in per capita electricity consumption among the provinces of Turkey. However, other indicators of economic development should be examined to determine the overall convergence.


Keywords: Convergence, Electricity consumption per capita, Spatial panel data model, Turkey.


JEL: C50, Q41, R10.

How to Cite
Akarsu G., & Berke B. (2020). Convergence of Electricity Consumption in Turkey: Spatial Panel Data Analysis. Panoeconomicus, Advance online publication, 1-23. doi:10.2298/PAN161129007A
Section
Original scientific paper