Long-run equilibrium relationship between energy consumption and CO2 emissions: a dynamic heterogeneous analysis on North Africa

Purpose – The purpose of this paper is to empirically examine the relationship between energy consumption, carbon emissions and economic growth for a panel of five South Asian economies namely India, Pakistan, Bangladesh, Sri Lanka and Nepal over the period 1972-2009 within multivariate framework. Design/methodology/approach – The study uses Pedroni cointegration and Granger causality test based on panel vector error correction model to examine long-run equilibrium relationship and direction of causation in short run and long run between energy consumption, carbon emissions and economic growth in South Asia. Findings – Cointegration result indicates the long-run equilibrium relationship between economic growth, energy consumption and carbon emissions for panel. Causality results suggest that bidirectional causality exist between energy consumption-GDP, and unidirectional causality from carbon emissions to GDP and energy consumption in long run. However, energy consumption causes carbon emissions in short run. Practical implications – Implementing energy efficiency measures and reducing dependence on fossils fuels by scaling up carbon free energy resources like nuclear, renewables including hydropower in energy mix is necessary for sustainable and inclusive growth in the region. Originality/value – South Asia economies need to sacrifice economic growth for reducing the carbon emissions in long run if the region dependence on fossils fuels including coal, oil and natural gas in energy mix continues at same pace.

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Energy consumption and real GDP: Panel co-integration and causality tests for sub-Saharan African countries

Journal of Energy in Southern Africa ◽

10.17159/2413-3051/2012/v23i1a3152 ◽

2017 ◽

Vol 23 (1) ◽

pp. 8-14 ◽

Cited By ~ 2

Author(s):

Babajide Fowowe

Keyword(s):

Energy Consumption ◽

Causal Relationship ◽

African Countries ◽

Real Gdp ◽

Long Run ◽

Equilibrium Relationship ◽

Causality Tests ◽

Sub Saharan ◽

Long Run Equilibrium

This paper investigates the causal relationship between energy consumption and real GDP in 14 Sub-Saharan African countries over the period 1971–2004. The results of panel co-integration tests showed that energy consumption and real GDP do not have a stable long-run equilibrium relationship. We find that for all members of the panel, there is homogenous causality from energy consumption to real GDP and vice versa. This bi-directional causality supports the feedback hypothesis.

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Economic Development, CO2 Emissions and Energy Use Nexus-Evidence from the Danube Region Countries

Energies ◽

10.3390/en14113165 ◽

2021 ◽

Vol 14 (11) ◽

pp. 3165

Author(s):

Eva Litavcová ◽

Jana Chovancová

Keyword(s):

Economic Growth ◽

Energy Consumption ◽

Co2 Emissions ◽

Carbon Emissions ◽

Bounds Testing ◽

Mutual Cooperation ◽

Long Run ◽

Short Run ◽

Danube Region ◽

The Impact

The aim of this study is to examine the empirical cointegration, long-run and short-run dynamics and causal relationships between carbon emissions, energy consumption and economic growth in 14 Danube region countries over the period of 1990–2019. The autoregressive distributed lag (ARDL) bounds testing methodology was applied for each of the examined variables as a dependent variable. Limited by the length of the time series, we excluded two countries from the analysis and obtained valid results for the others for 26 of 36 ARDL models. The ARDL bounds reliably confirmed long-run cointegration between carbon emissions, energy consumption and economic growth in Austria, Czechia, Slovakia, and Slovenia. Economic growth and energy consumption have a significant impact on carbon emissions in the long-run in all of these four countries; in the short-run, the impact of economic growth is significant in Austria. Likewise, when examining cointegration between energy consumption, carbon emissions, and economic growth in the short-run, a significant contribution of CO2 emissions on energy consumptions for seven countries was found as a result of nine valid models. The results contribute to the information base essential for making responsible and informed decisions by policymakers and other stakeholders in individual countries. Moreover, they can serve as a platform for mutual cooperation and cohesion among countries in this region.

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TRADE AND GROWTH IN A NON‐RECOGNIZED SMALL ISLAND STATE: EVIDENCE FROM THE TURKISH REPUBLIC OF NORTHERN CYPRUS

Journal of Business Economics and Management ◽

10.3846/jbem.202010.06 ◽

2010 ◽

Vol 11 (1) ◽

pp. 112-130

Author(s):

Salih Katircioglu

Keyword(s):

Economic Growth ◽

International Trade ◽

Small Island ◽

Long Run ◽

Equilibrium Relationship ◽

Island State ◽

Northern Cyprus ◽

Small Island State ◽

Growth Hypothesis ◽

Long Run Equilibrium

This paper empirically investigates long‐run equilibrium relationship and causality between international trade and economic growth in North Cyprus, which has a non‐recognized state and suffers from the Cyprus problem for more than 40 years. Results reveal that long‐run equilibrium relationship exists between international trade variables (exports and imports of goods and services) and economic growth in this small island state. The present study also validates the existence of export‐led growth hypothesis in Northern Cyprus while it rejects the validity of import‐led growth hypothesis. Finally, this study has shown that Turkish Cypriots should improve not only services exports but also merchandise exports in to contribute to its economy further. Santrauka Straipsnyje, remiantis empiriniais duomenimis, tyrinejama ilgalaike pusiausvyra bei priežastinis ryšys tarp tarptautines prekybos ir ekonominio augimo Šiaures Kipre, kuris yra nepripažintas ir kenčia del šios politines problemos daugiau negu 40 metu. Empirinio tyrimo rezultatai leidžia teigti, kad tarp tarptautines prekybos rodikliu (prekiu ir paslaugu eksporto bei importo) bei ekonominio augimo šioje mažoje saloje vyrauja ilgalaike pusiausvyra. Tyrimas patvirtina hipoteze apie eksporto kaip ekonominio augimo veiksnio svarba, bet paneigia importo itaka nagrinejamos mažos šalies pletrai. Autorius ragina skatinti ne tik paslaugu, bet ir produkcijos eksporta norint pasiekti spartesni ekonomikos augimo masta Šiaures Kipre.

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Energy, Emissions and the Economy: Empirical Analysis from Pakistan

The Pakistan Development Review ◽

10.30541/v53i4iipp.383-401 ◽

2014 ◽

Vol 53 (4II) ◽

pp. 383-401 ◽

Cited By ~ 2

Author(s):

Muhammad Tariq Mahmood ◽

Sadaf Shahab

Keyword(s):

Economic Growth ◽

Energy Consumption ◽

Co2 Emissions ◽

Fossil Fuels ◽

Kuznets Curve ◽

Bounds Testing ◽

Long Run ◽

Negative Impacts ◽

Energy Emissions ◽

Carbon Dioxide Co2

It is now an established fact that the most important environmental problem of our era is global warming.1 The rising quantity of worldwide carbon dioxide (CO2) emissions seems to be escalating this problem. As the emissions generally result from consumption of fossil fuels, decreasing energy spending seems to be the direct way of handling the emissions problem. However, because of the possible negative impacts on economic growth, cutting the energy utilisation is likely to be the “less preferred road”. Moreover, if the Environmental Kuznets Curve (EKC) hypothesis applies to the emissions and income link, economic growth by itself may become a solution to the problem of environmental degradation [Rothman and de Bruyn (1998)]. Coondoo and Dinda (2002), however, argue that both developing and developed economies must sacrifice economic growth. Still, countries may opt for different policies to fight global environmental problems, mainly depending on the type of relationship between CO2 emissions, income, and energy consumption over the long run [Soytas and Sari (2006)]. Hence, the emissions-energy-income nexus needs to be studied carefully and in detail for every economy, but more so for the developing countries. In this paper, we investigate the relationship between energy consumption, CO2 emissions and the economy in Pakistan from a long run perspective, in a multivariate framework controlling for gross fixed capital, labour and exports by employing ARDL bounds testing approach.

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CO2 Emissions, Energy Consumption, and Economic Growth: New Evidence in the ASEAN Countries

Journal of Risk and Financial Management ◽

10.3390/jrfm12030145 ◽

2019 ◽

Vol 12 (3) ◽

pp. 145 ◽

Cited By ~ 6

Author(s):

Vo ◽

Le

Keyword(s):

Economic Growth ◽

Renewable Energy ◽

Energy Consumption ◽

Granger Causality ◽

Co2 Emissions ◽

Causal Effect ◽

The Philippines ◽

Policy Implications ◽

Renewable Energy Consumption ◽

Long Run

The members of the Association of Southeast Asian Nations (ASEAN) have made several attempts to adopt renewable energy targets given the economic, energy-related, environmental challenges faced by the governments, policy makers, and stakeholders. However, previous studies have focused limited attention on the role of renewable energy when testing the dynamic link between CO2 emissions, energy consumption and renewable energy consumption. As such, this study is conducted to test a common hypothesis regarding a long-run environmental Kuznets curve (EKC). The paper also investigates the causal link between carbon dioxide (CO2) emissions, energy consumption, renewable energy, population growth, and economic growth for countries in the region. Using various time-series econometrics approaches, our analysis covers five ASEAN members (including Indonesia, Myanmar, Malaysia, the Philippines, and Thailand) for the 1971–2014 period where required data are available. Our results reveal no long-run relationship among the variables of interest in the Philippines and Thailand, but a relationship does exist in Indonesia, Myanmar, and Malaysia. The EKC hypothesis is observed in Myanmar but not in Indonesia and Malaysia. Also, Granger causality among these important variables varies considerably across the selected countries. No Granger causality among carbon emissions, energy consumption, and renewable energy consumption is reported in Malaysia, the Philippines, and Thailand. Indonesia experiences a unidirectional causal effect from economic growth to renewable energy consumption in both short and long run and from economic growth to CO2 emissions and energy consumption. Interestingly, only Myanmar has a unidirectional effect from GDP growth, energy consumption, and population to the adoption of renewable energy. Policy implications have emerged based on the findings achieved from this study for each country in the ASEAN region.

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Determinants of capital structure; a sector-level analysis for Indian manufacturing firms

International Journal of Productivity and Performance Management ◽

10.1108/ijppm-12-2018-0451 ◽

2020 ◽

Vol 69 (5) ◽

pp. 1033-1060 ◽

Cited By ~ 1

Author(s):

Ajaya Kumar Panda ◽

Swagatika Nanda

Keyword(s):

Capital Structure ◽

Firm Value ◽

Regression Models ◽

Panel Cointegration ◽

Manufacturing Firms ◽

Content Type ◽

Long Run ◽

Equilibrium Relationship ◽

Long Run Equilibrium ◽

Non Parametric

PurposeThe purpose of this paper is to empirically analyze the determinants of capital structure and their long-run equilibrium relationships with firm-specific and macroeconomic indicators for Indian manufacturing firms.Design/methodology/approachThe study is conducted using the panel semi-parametric and non-parametric regression models to identify the key determinants of capital structure. Panel cointegration models are also employed for analyzing the long-run equilibrium association of capital structure with its determinants.FindingsThe study finds that each manufacturing sector has unique determinants of capital structure. The debt level is significantly affected by asset tangibility, growth opportunity, effective tax rate, non-debt tax shield, cash flow, profitability, firm size, foreign investment, government borrowing, economic growth, and interest rate. All these firm-specific and macroeconomic variables have strong long-run equilibrium relationship with capital structure as a whole.Practical Implication of the StudyThe study analyzes the determinants of capital structure for eight manufacturing sectors of India, which helps firm managers and policy-makers to identify appropriate factors that maximize firm value. The sector-specific features of firms may lead to a new path with regard to corporate governance and ownership structure to enhance stakeholder's satisfaction.Originality/valueThe use of semi-parametric and non-parametric panel regression models to analyze the determinants of capital structure, and the use of panel cointegration approach to explore the long-run equilibrium relationship between the determinants and its factors are the unique contributions of the present research.

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Correlations between energy consumption per capita, growth rate, industrialisation, trade volume and urbanisation: the case of Turkey

New Trends and Issues Proceedings on Humanities and Social Sciences ◽

10.18844/prosoc.v4i10.3085 ◽

2018 ◽

Vol 4 (10) ◽

pp. 118-127

Author(s):

Funda Yurdakul

Keyword(s):

Growth Rate ◽

Energy Consumption ◽

Least Squares ◽

Ordinary Least Squares ◽

Trade Volume ◽

Long Run ◽

Turkish Economy ◽

Equilibrium Relationship ◽

Per Capita ◽

Relationship Of

This study examines the relationship of energy consumption per capita with growth rate, industrialisation, trade volume and urbanisation in Turkish economy throughout the 1980–2015 period using the Engle-Granger, Fully modified ordinary least squares (FMOLS), canonical cointegration regression (CCR) and dynamic ordinary least squares (DOLS) methods. Analysis results revealed a long-run equilibrium relationship between the change in energy consumption per capita and growth rate, industrialisation, trade volume and urbanisation. Urbanisation, industrialisation, growth rate and trade volume positively influence the change in energy consumption per capita. Keywords: Energy consumption, Engle-Granger method, fully modified ordinary least squares (FMOLS) method, canonical cointegration regression (CCR), dynamic ordinary least squares (DOLS) method.

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Investigating the Causal Linkage Among Economic Growth, Energy Consumption and CO2 Emissions in Thailand: An Application of the Wavelet Coherence Approach

International Journal of Renewable Energy Development ◽

10.14710/ijred.2021.32233 ◽

2020 ◽

Vol 10 (1) ◽

pp. 17-26 ◽

Cited By ~ 5

Author(s):

Tomiwa Sunday Adebayo ◽

Gbenga Daniel Akinsola

Keyword(s):

Economic Growth ◽

Energy Consumption ◽

Co2 Emissions ◽

Time Series Data ◽

Wavelet Coherence ◽

Series Data ◽

Energy Usage ◽

Positive Correlation ◽

Long Run ◽

Growth Energy

The study aims to explore the causal linkage between CO2 emissions, economic growth and energy consumption in Thailand utilizing the wavelet coherence approach, conventional Granger and the Toda-Yamamoto causality techniques. In this study, In this study, time-series data spanning the period between 1971 and 2018 were used. No prior study has used the wavelet coherence approach to collect information on the association and causal interrelationship among these economic variables at different frequencies and timeframes in Thailand. The study objectives are structured to answer the following question: Does economic growth and energy consumption lead to CO2 emissions in Thailand?. The findings revealed that: (a) Changes in economic growth led to changes in CO2 emissions in Thailand at different frequencies (different scales) between 1971 and 2018. (b) A bidirectional causal relationship between CO2 emissions and energy consumption. (c) A positive correlation between CO2 emissions and energy usage in the short and long-run between 1971 and 2018. (d) A positive correlation between GDP growth and CO2 emissions in the short and long-run between 1971 and 2018. The study suggested that Thailand should initiate stronger policies towards enhancing the efficiency of energy and energy-usage programs to minimize unnecessary energy waste.

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TRADE AND GROWTH IN A NON‐RECOGNIZED SMALL ISLAND STATE: EVIDENCE FROM THE TURKISH REPUBLIC OF NORTHERN CYPRUS

Journal of Business Economics and Management ◽

10.3846/jbem.2010.06 ◽

2010 ◽

Vol 11 (1) ◽

pp. 112-130 ◽

Cited By ~ 8

Author(s):

Salih Katircioglu

Keyword(s):

Economic Growth ◽

International Trade ◽

Small Island ◽

Long Run ◽

Equilibrium Relationship ◽

Island State ◽

Northern Cyprus ◽

Small Island State ◽

Growth Hypothesis ◽

Long Run Equilibrium

This paper empirically investigates long‐run equilibrium relationship and causality between international trade and economic growth in North Cyprus, which has a non‐recognized state and suffers from the Cyprus problem for more than 40 years. Results reveal that long‐run equilibrium relationship exists between international trade variables (exports and imports of goods and services) and economic growth in this small island state. The present study also validates the existence of export‐led growth hypothesis in Northern Cyprus while it rejects the validity of import‐led growth hypothesis. Finally, this study has shown that Turkish Cypriots should improve not only services exports but also merchandise exports in to contribute to its economy further. Santrauka Straipsnyje, remiantis empiriniais duomenimis, tyrinejama ilgalaike pusiausvyra bei priežastinis ryšys tarp tarptautines prekybos ir ekonominio augimo Šiaures Kipre, kuris yra nepripažintas ir kenčia del šios politines problemos daugiau negu 40 metu. Empirinio tyrimo rezultatai leidžia teigti, kad tarp tarptautines prekybos rodikliu (prekiu ir paslaugu eksporto bei importo) bei ekonominio augimo šioje mažoje saloje vyrauja ilgalaike pusiausvyra. Tyrimas patvirtina hipoteze apie eksporto kaip ekonominio augimo veiksnio svarba, bet paneigia importo itaka nagrinejamos mažos šalies pletrai. Autorius ragina skatinti ne tik paslaugu, bet ir produkcijos eksporta norint pasiekti spartesni ekonomikos augimo masta Šiaures Kipre.

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