The literature has extensively evaluated the scenery of temporal causality among power consumption as well as economic growth or employment. These studies in the literature generally have no consensus judgment due to different countries or dissimilar time within the same country. The result simply that power conservation policies might be forced without affecting GNP growth. Nevertheless, Akarca plus Long (1980) failed to obtain causality between power consumption and GDP when the period is shortened. They argued that Kraft and Kraft’s study could suffer from temporal time period instability. Masih and Masih in a multivariate framework examined the relationship between total power consumption and actual income of Asian economies such as India ;Pakistan; Malaysia; Singapore; Indonesia; Philippines; Korea; and Taiwan. Power use was found to be neutral with respect to earnings for Malaysia, Singapore and Philippines, unidirectional causality existed from power consumption to GNP for India, exactly the reverse for Indonesia and mutual causality was present for Pakistan. Paul and Bhattacharya applied alternative econometric time series models viz Engle Granger co-integration, Granger causality test and Johnsen’s multivariate co-integration technique on the Indian data for the period 1950-96 and found using Engle-Granger and Johansen test that, in the long run economic growth leads to power consumption but the ordinary Granger causality shows to power consumption leads to economic growth. The finding beginning Granger causality is also consistent with Johnsen’s error correction result. Beginning their survey, they found that while Cheng had established a unidirectional influence from economic growth to power consumption but Adjaya found causality in the reverse direction.
Power is single of the most main ingredients required to alleviate poverty as well as realize socio-economic plus human improvement, which is straight interconnected to the prominence of life in rural areas. Empirical results demonstrate that there is unidirectional causality from per capita GDP to per capita electricity consumption. The key usual resource of the country is natural gas, which serves as the single guaranteed source of power supply plus feedstock for its chemical industry. It is also the single most powerful protection the country’s fragile economy has against the extreme swings in power prices experienced in the world in the new millennium.
