Electricity Consumption and Economic Growth : Evidence from Poland

Th e paper investigates the relationship between electricity consumption and economic growth in Poland for the period 2000 to 2012. Understanding the behavior of electricity consumption in relation to the economy is very important for improve a stable economic growth and development. Th e obtained results indicate that there is the causal relationship between electricity consumption and economic growth in Poland and the relationship is bi-directional. We also discovered the bi-directional causality between capital and economic growth. On the basis of the causality results we estimated a one-sector aggregate production function, where the electricity consumption was one of the input variables. Th e evaluated growth model showed that electricity consumption is a pro-growth variable, so the results indicate that economic growth of Poland is electricity-dependent. Th at’s allows to state that electricity is a limiting factor to economic growth of Poland.