Energy consumption and economic growth in South Africa reexamined: A nonparametric testing apporach

2014 ◽  
Vol 40 ◽  
pp. 840-850 ◽  
Author(s):  
Boqiang Lin ◽  
Presley K. Wesseh Jr.
Author(s):  
Nicholas M. Odhiambo

In this paper we examine the causal relationship between CO2 emissions and economic growth in South Africa - using the newly developed ARDL-Bounds testing approach. We incorporate energy consumption in a bivariate causality setting between CO2 emissions and economic growth, thereby creating a simple trivariate model. Our empirical results show that there is a distinct unidirectional causal flow from economic growth to carbon emissions in South Africa. We also find that energy consumption Granger-causes both carbon emissions and economic growth. We recommend that energy conservation policies, as well as appropriate forms of renewable energy, should be explored in South Africa in order to enable the country to reduce its carbon emission footprint without necessarily sacrificing its output growth. The results apply irrespective of whether the causality is estimated in the short or in the long run.


2011 ◽  
Vol 84-85 ◽  
pp. 765-769
Author(s):  
He Ming Wang ◽  
Qiang Yue ◽  
Zhong Wu Lu

The decoupling conditions of GDP and Total Primary Energy Supply (TPES) for the BRICS in the period 1971-2008 were analyzed. It is concluded that in the studied period, the decoupling indicators of China and Russia are relatively higher than that of Brazil, South Africa and India. The BRICS’s decoupling distribution is similar to China, because China accounts for most part of TPES and GDP of the BRICS. To restrain the total resource or energy consumption from increasing too fast, it is suggested to match the indicators of GDP growth and the decreasing rate of resource consumption per unit of GDP appropriately.


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