Convergence of Electricity Consumption in Turkey: Spatial Panel Data Analysis

Abstract

The issue of convergence has been discussed in many theoretical and empirical studies. Because per capita electricity consumption is considered as an indication of economic development, this study aims to determine the presence of "absolute and conditional beta (beta) convergence" of per capita total electricity consumption across the provinces of Turkey between 1986 and 2013. This work is the first investigation of electricity consumption convergence in Turkey. Based on the annual balanced panel data and the spatial panel data model, our findings indicate absolute beta convergence of per capita electricity consumption across the provinces of Turkey. We conclude that regional policies are successful in reducing regional disparities in per capita electricity consumption among the provinces of Turkey. However, other indicators of economic development should be examined to determine the overall convergence.