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Electricity plays a crucial role in the economy of a country, especially when the economy of a country is in its developing phase like India .In this book, an attempt has been made to investigate the causality between electricity supply and economic growth in India taking data from 1960-61 to 2006-07. In order to find out the causal relationship, Granger causality model has been adopted to find whether there is bi-directional or unidirectional causality running from electricity consumption to economic growth or vise versa. The direction of causation between electricity consumption and economic growth has significant implications. In this book, we have incorporated the idea of the existence of a hypothetical Kuznet Curve for electricity intensity. In addition, we have also tried to find out the relationship between electricity supply and economic growth in the major states of India by adopting panel regression model. This book provides important insight to students, researchers, policy-makers and those interested to fetch knowledge about power sector in developing country.
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