Energy consumption in Bangladesh, India, and Pakistan: cointegration analysis

Abstract

Recognizing the significant role that energy plays on growth, the South Asian countries are beginning to focus on their energy issues and formulate common energy policies. The SAARC Energy Center (SEC) was established in 2005 to address energy challenges in the South Asian region. In this paper the authors investigate the presence of cointegration and causality relationships for energy consumption in the three largest SAARC countries: Bangladesh, India, and Pakistan and argue that establishing mutually beneficial energy policies in the three countries helps the SEC meet its goals and objectives.