Abstract
We explore the relationship between economic growth and energy consumption using regional level data for 2004–2014 period. Data on electricity consumption for regional distributional areas cannot be used with the economic data for county/regional level since the borders of regional electricity distributional areas do not correspond to administrative NUTS-3 borders. We use a proprietary dataset of actual electricity consumption for Croatian counties which allows us to revisit the energy-growth nexus dilemma from a disaggregated viewpoint. We find significant policy implications stemming from comovement between counties and long term positive influence of energy, capital and labour on industrial output.
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