Economic growth,energy consumption and CO2 emissions in India: a disaggregated causal analysis

This study examines the long-run and short-run causal relationships among energy consumption, real gross domestic product (GDP) and CO₂ emissions using aggregate and disaggregate (sectoral) energy consumption measures utilising annual data from 1971 to 2011. The autoregressive distributed lag bounds test reveals that there is a long-run relationship among the variables concerned at both aggregate and disaggregate levels. The Toda–Yamamoto causality tests, however, reveal that the long-run as well short-run causal relationship among the variables is not uniform across sectors. The weight of evidences of the study indicates that there is short-run causality from electricity consumption to economic growth, and to CO₂ emissions. The results suggest that India should take appropriate cautious steps to sustain high growth rate and at the same time to control emissions of CO₂. Further, energy and environmental policies should acknowledge the sectoral differences in the relationship between energy consumption and real gross domestic product.     

Environment Kuznets curve for CO2 emissions: A cointegration analysis for China

This study examines the long-run relationship between carbon emissions and energy consumption, income and foreign trade in the case of China by employing time series data of 1975–2005. In particular the study aims at testing whether environmental Kuznets curve (EKC) relationship between CO₂ emissions and per capita real GDP holds in the long run or not. Auto regressive distributed lag (ARDL) methodology is employed for empirical analysis. A quadratic relationship between income and CO₂ emission has been found for the sample period, supporting EKC relationship. The results of Granger causality tests indicate one way causality runs through economic growth to CO₂ emissions. The results of this study also indicate that the carbon emissions are mainly determined by income and energy consumption in the long run. Trade has a positive but statistically insignificant impact on CO₂ emissions.     

The relationship between CO2 emissions,energy consumption and economic growth in Italy

This study examines the relationship between CO₂ emissions, energy consumption and economic growth in Italy over the period 1970–2006. Results of unit root tests show that all variables are non-stationary in their level form, but stationary in first differences form. The causal relationship between variables is examined using causality test in a vector autoregressive framework. Our empirical results show that CO₂ emissions, energy consumption and economic growth are not cointegrated. Moreover, the Toda and Yamamoto Granger non-causality test shows a bidirectional causality between CO₂ emissions and economic growth, as well as between CO₂ emissions and energy consumption. Forecast error variance decompositions evidence that the errors in real per capita GDP are mainly due to uncertainty in GDP itself, while the errors in predicting the energy consumption and the CO₂ emissions are sensitive to disturbances in the other two equations.     

Causality relationship between coal consumption and GDP: Difference of major OECD and non-OECD countries

This paper uses Granger causality tests to examine the differences of causal relationships between coal consumption and GDP in major OECD and non-OECD countries, using data for the period of 1980–2005. What we discovered is that unidirectional causality running from GDP to coal consumption exists in Japan and China, and no causality relationship between coal consumption and GDP in India, South Korea and South Africa while the series are not cointegrated in USA. The major OECD or non-OECD countries especially China, India and South Africa should reduce their CO₂ emissions in coal consumption to reach sustainable development.     

Energy consumption and economic growth: Evidence from the economic community of West African States (ECOWAS)

Access to modern energy is believed to be a prerequisite for sustainable development, poverty alleviation and the achievement of the Millennium Development Goals.However, theoretical models and empirical results offer conflicting evidence on the relationship between energy consumption and economic growth that we remain largely unsure of the cause-and-effect nature of this relationship, if indeed a relationship exists at all.This paper tests, in a panel context, the long-run relationship between energy access, and economic growth for fifteen African countries from 1980 to 2008 by using recently developed panel cointegration techniques.We adopt a three-stage approach, consisting of panel unit root, panel cointegration and Granger causality tests to study the dynamic causal relationships between energy consumption, energy prices and growth as well as relationship between electricity consumption, prices and growth.Results show that GDP and energy consumption as well as GDP and electricity move together in the long-run. By estimating these long-run relationships and testing for causality using panel-based error correction models, we found unidirectional long-run and short-run causality. The causality is running from GDP to energy consumption in the short-run, and from energy consumption to GDP in the long-run. There is also evidence of unidirectional causality running from electricity consumption to GDP in the long-run.This study thus provides empirical evidence of long-run and causal relationships between energy consumption and economic growth for our sample of fifteen countries; suggesting that lack or limited access to modern energy services could hamper economic growth and compromise the development prospects of these countries.     

The renewable energy,CO2 emissions,and economic growth: VAR model

This paper provides an empirical analysis of CO₂ emissions and economic growth, renewable energy consumption, and energy consumption over the period 1975–2014 in Germany. This paper uses the autoregressive distributed lag (ARDL) approach of cointegration test and vector error-correction models. The unit root and cointegration tests show that the long-run relationship between CO₂ emissions and its determinants. The empirical results show that the findings do not support the environmental Kuznets curve between real GDP and CO₂ emissions. To estimate the shocks of renewable energy consumptions, the study applies the dynamic test of Impulse Response Function (IRF) under the VAR method. The increasing portion of renewable energy consumption in electricity generation would have no impacts on the environment. However, the hikes of renewable energy sources would incur more cost to electricity producers and shrivel up the growth of economies through the expansionary effect of industry’s consumption and private capital spending in the Germany’s economy.     

Electricity consumption and economic growth nexus in Bangladesh: Revisited evidences

In this paper, an attempt is being made to examine the causal relationship between per capita electricity consumption and per capita GDP of Bangladesh using the vector error correction specified Granger causality test to search their short-run, long-run and joint causal relationships for the period of 1971–2008. Empirical findings reveal that there is a short-run unidirectional causal flow running from per capita electricity consumption to per capita GDP without feedback. The presence of a positive short-run causality explains that an increase in electricity consumption directly affects economic activity in Bangladesh. Likewise, results from joint causality exhibit the same as in short-run. By contrast, long-run results show a bi-directional causality running from electricity consumption to economic growth with feedback. These findings can provide essential policy insights to design immediate and long-term growth prospect for Bangladesh keeping in mind its present planned growth strategy and dismal power and energy sector.     

Energy consumption and economic activities in Iran

The causal relationship between overall GDP, industrial and agricultural value added and consumption of different kinds of energy are investigated using vector error correction model for the case of Iran within 1967–2003. A long-run unidirectional relationship from GDP to total energy and bidirectional relationship between GDP and gas as well as GDP and petroleum products consumption for the whole economy was discovered. Causality is running from value added to total energy, electricity, gas and petroleum products consumption and from gas consumption to value added in industrial sector. The long-run bidirectional relations hold between value added and total energy, electricity and petroleum products consumption in the agricultural sector. The short-run causality runs from GDP to total energy and petroleum products consumption, and also industrial value added to total energy and petroleum products consumption in this sector.     

Economic growth and pollutant emissions in Tunisia: An empirical analysis of the environmental Kuznets curve

This paper investigates the relationship between economic growth and pollutant emissions for a small and open developing country, Tunisia, during the period 1961–2004. The investigation is made on the basis of the environmental Kuznets curve hypothesis, using time series data and cointegration analysis. Carbon dioxide (CO₂) and sulfur dioxide (SO₂) are used as the environmental indicators, and GDP as the economic indicator. Our results show that there is a long-run cointegrating relationship between the per capita emissions of two pollutants and the per capita GDP. An inverted U relationship between SO₂ emissions and GDP has been found, with income turning point approximately equals to $1200 (constant 2000 prices) or to $3700 (in PPP, constant 2000 prices). However, a monotonically increasing relationship with GDP is found more appropriate for CO₂ emissions. Furthermore, the causality results show that the relationship between income and pollution in Tunisia is one of unidirectional causality with income causing environmental changes and not vice versa, both in the short-run and long-run. This implies that an emission reduction policies and more investment in pollution abatement expense will not hurt economic growth. It could be a feasible policy tool for Tunisia to achieve its sustainable growth in the long-run.     

Energy consumption,CO2 emissions,and development in the UAE

This study investigated the impact of energy consumption and CO₂ emissions on the United Arab Emirates (UAE)’s economic and financial development. The vector autoregressive (VAR) model was applied. The results obtained in the study show that energy consumption and CO₂ emissions had a long-run relationship with the economic and financial development indicators in the UAE. It was also found that there was a significant causal relationship between energy consumption and CO₂ emissions on both economic and financial development indicator variables. The UAE is well known for its high economic and financial development owing to the fact that this country has achieved a fast economic growth in the last three decades. However, it is important that this country needs to increase its consumption of green energy to reduce CO₂ emissions.     

Evaluating the interplays among economic growth and energy consumption and CO2 emission of China during 1990-2007

The interplays among economy and energy and environment have been widely concerned. This paper put forward several indicators to quantify the relationships among economic growth and energy consumption and CO₂ emission. As an example, these indicators were applied to evaluate the comprehensive performances of China during 1990-2007. The results show that Chinese people has been living a better life with Chinese rapid economic growth but not synchronously in urban and rural areas. Non-carbon energy resources share has increased; however, fossil energy resources have still acted as the main driver for Chinese economic growth during this period. Technical progress has improved the fossil energy efficiency of Chinese economic activity, which leads to CO₂ emission per unit GDP and CO₂ emission per capita unit GDP dropping simultaneously; however, the two indicators’ annual decline rates become smaller and smaller, which reflects that technical progress’ role is dropping and economic scale's effect is climbing. People's survival has a rising contribution to CO₂ emission. CO₂ emission per capita has increased, which shows that economic scale has greater impact on CO₂ emission than technical progress does. Relatively speaking, Chinese development patterns have become more and more sustainable during this period. Finally, based on the related issues being discussed, some corresponding suggestions are put forward for Chinese government to further coordinate the relationship among economic development and energy consumption and CO₂ emission. The proposed indicators can form a set of useful tool for policy-makers to promote the harmonious development of economy and energy and environment in different regions and countries.     

Electricity consumption,CO2 emission,and economic growth in the Middle East

This study examines the impact of electricity consumption on the economic growth in the Middle East countries during the period 1990–2008. The panel model is used in this study. Based on the cointegration test results, it is found that CO₂ emission and electricity consumption have a long-run relationship with economic growth. Moreover, there is also a bi-directional Granger causality between electricity consumption, CO₂ emission, and economic growth in both the short run and the long run. The results of this study show clearly that electricity consumption plays an important role in the economic growth of the Middle East countries.     

CO2 emissions,energy consumption and economic growth in China: A panel data analysis

This paper examines the causal relationships between carbon dioxide emissions, energy consumption and real economic output using panel cointegration and panel vector error correction modeling techniques based on the panel data for 28 provinces in China over the period 1995–2007. Our empirical results show that CO₂ emissions, energy consumption and economic growth have appeared to be cointegrated. Moreover, there exists bidirectional causality between CO₂ emissions and energy consumption, and also between energy consumption and economic growth. It has also been found that energy consumption and economic growth are the long-run causes for CO₂ emissions and CO₂ emissions and economic growth are the long-run causes for energy consumption. The results indicate that China's CO₂ emissions will not decrease in a long period of time and reducing CO₂ emissions may handicap China's economic growth to some degree. Some policy implications of the empirical results have finally been proposed.     

Economic growth,energy conservation and emissions reduction: A comparative analysis based on panel data for 8 Asian-Pacific countries

This study was conducted to evaluate the causality between energy consumption, GDP growth and carbon emissions for eight Asia-Pacific countries from 1971 to 2005 using the panel data. The results indicate that there are long-run equilibrium relationships between these variables. Additionally, causality from energy consumption to CO₂ emissions was observed generally, but there were some opposite relationships also. Parameter estimations of the panel data model indicate that there are great differences in the carbon emissions, the efficiencies of energy use, carbon emissions of unit GDP and unit energy consumption between developed and developing countries. The base carbon emissions, per capita energy consumption and efficiency of energy use in developing countries are far lower than in developed countries; however, the CO₂ emissions per unit of energy use is higher. Although developing countries may reduce their CO₂ emission per unit energy use, total energy consumption will rise rapidly with economic development. Thus, developing countries must determine how to undergo economic growth while conserving energy and reducing emissions. To respond to global climate change, it is necessary to develop innovative technology for energy use, transform the energy structure and conduct the clean development mechanism.     

CO2 emissions,energy usage,and output in Central America

This study extends the recent work of Ang (2007) [Ang, J.B., 2007. CO₂ emissions, energy consumption, and output in France. Energy Policy 35, 4772–4778] in examining the causal relationship between carbon dioxide emissions, energy consumption, and output within a panel vector error correction model for six Central American countries over the period 1971–2004. In long-run equilibrium energy consumption has a positive and statistically significant impact on emissions while real output exhibits the inverted U-shape pattern associated with the Environmental Kuznets Curve (EKC) hypothesis. The short-run dynamics indicate unidirectional causality from energy consumption and real output, respectively, to emissions along with bidirectional causality between energy consumption and real output. In the long-run there appears to be bidirectional causality between energy consumption and emissions.     

Environmental degradation,economic growth and energy consumption: Evidence of the environmental Kuznets curve in Malaysia

This paper tests for the short and long-run relationship between economic growth, carbon dioxide (CO₂) emissions and energy consumption, using the Environmental Kuznets Curve (EKC) by employing both the aggregated and disaggregated energy consumption data in Malaysia for the period 1980–2009. The Autoregressive Distributed Lag (ARDL) methodology and Johansen–Juselius maximum likelihood approach were used to test the cointegration relationship; and the Granger causality test, based on the vector error correction model (VECM), to test for causality. The study does not support an inverted U-shaped relationship (EKC) when aggregated energy consumption data was used. When data was disaggregated based on different energy sources such as oil, coal, gas and electricity, the study does show evidences of the EKC hypothesis. The long-run Granger causality test shows that there is bi-directional causality between economic growth and CO₂ emissions, with coal, gas, electricity and oil consumption. This suggests that decreasing energy consumption such as coal, gas, electricity and oil appears to be an effective way to control CO₂ emissions but simultaneously will hinder economic growth. Thus suitable policies related to the efficient consumption of energy resources and consumption of renewable sources are required.     

Electricity consumption and economic growth in Algeria: A multivariate causality analysis in the presence of structural change

This article addresses the issue of electricity consumption, petroleum price and economic growth in Algeria. The primary objective is to investigate and analyze the causal relationship between electricity consumption (EC), Brent oil price (BOP) and economic growth (GDP) for Algeria over the period of 1971–2010. To examine short-run, long-run and joint causality relationships we used a multivariate cointegration approach based on the recent advances in time series econometrics (e.g., Zivot–Andrews test; Gregory–Hansen cointegration test; Vector Error Correction Models (VECM)). The empirical results show that there is evidence of short-run and a strong long-run bi-directional causal relationship between EC and real GDP in Algeria. Findings indicate also the absence of causal relationship between BOP and EC. Our empirical findings support the idea that there a link between electricity consumption and economic growth and disproves the neo-classical assumption referred to as the “neutrality hypothesis”.     

The long-run and causal analysis of energy,growth, openness and financial development on carbon emissions in Turkey

The aim of this paper is to examine the causal relationship between financial development, trade, economic growth, energy consumption and carbon emissions in Turkey for the 1960–2007 period. The bounds F‐test for cointegration test yields evidence of a long-run relationship between per capita carbon emissions, per capita energy consumption, per capita real income, the square of per capita real income, openness and financial development. The results show that an increase in foreign trade to GDP ratio results an increase in per capita carbon emissions and financial development variable has no significant effect on per capita carbon emissions in the long- run. These results also support the validity of EKC hypothesis in the Turkish economy. It means that the level of CO₂ emissions initially increases with income, until it reaches its stabilization point, then it declines in Turkey. In addition, the paper explores causal relationship between the variables by using error-correction based Granger causality models.     

Estimation of real GDP and unrecorded economy in Turkey based on environmental data

This paper estimates the real gross domestic product (GDP) and unrecorded economy for Turkey using the Kalman filter technique. Using different tests, most of the research articles on energy policy investigate the causal relationship between energy consumption and GDP for different countries. On the other hand, other studies on climate change try to show the effects of both energy consumption and GDP on carbon dioxide (CO₂) emission. Since the unreported economy has an important weight in developing countries where the recorded (or official) GDP suffers from considerable measurement problems, investigation of the relationship between the recorded GDP and energy consumption may lead to biased results. In this paper, the economic variables (GDP, country population) as well as environmental variables (CO₂ emission, forest area) are used in order to estimate GDP, which is an unobserved variable in our model. The results clearly indicate that: first, the true GDP in Turkey, that our model estimates, is higher than the observed (recorded) GDP in the whole period of observation (1973–2003) and the size of unrecorded economy varies between 12 and 30 percent of the observed GDP; second, the gap between the true GDP and the observed GDP has an increasing trend; third, if the change in GDP per primary energy supply is smaller than the change in CO₂ per primary energy supply, then there may exist unrecorded economy.     

The effect of renewable energy and urbanization on CO2 emissions: A panel data

Europe has experienced fast-paced urbanization development over the past three decades. This paper empirically investigates the long-run equilibrium relationships and causal relationships among urbanization, renewable energy consumption, and CO₂ emissions, and this is important for EU countries’ future sustainable development. DOLS and FMOLS approaches are used for the period 1992–2014 .

Granger causality results show that there is a unidirectional relationship from CO₂ emissions to urbanization, and there is no causality between renewable energy consumption and CO₂ emissions. The results have important implications for EU policymakers on the path toward a sustainable society. Urbanization can have negative impacts on the natural environment with the net effect being hard in EU countries.