Causality relationship between electricity consumption and GDP in Bangladesh

In this paper, we examine the causal relationship between the per capita electricity consumption and the per capita GDP for Bangladesh using cointegration and vector error correction model. Our results show that there is unidirectional causality from per capita GDP to per capita electricity consumption. However, the per capita electricity consumption does not cause per capita GDP in case of Bangladesh. The finding has significant implications from the point of view of energy conservation, emission reduction and economic development.