Electricity Consumption and Economic Growth: The Impact of Demographic Transition

Abstract

This study aims to investigate the economic growth concerning electricity consumption in the demographic transition of population ageing. The direction of the framework was to expand the basic neoclassical growth model. The investigation discussed the relationship between electricity consumption and economic growth; population ageing on electricity consumption; and population ageing on economic growth. Demographic transition alters the consumption structure within the population, which potentially affects economic growth. Meanwhile, electricity consumption is core to the development process. Investigation of electricity consumption and population ageing seems crucial in the production sector. The proposed model can be used in ways that give us new insights into the relationship between energy and population growth, especially in developing countries. The developed framework is primarily focused on the linkages between electricity consumption and economic growth. This study was lacking in real data application and further work will be implemented. This paper is among the first to contribute to the debate on electricity consumption and economic growth from a population ageing perspective. It has the value of enlightening the complexities of the economic system and the current social changes of the global demographic transition.