The long-run relationships between transport energy consumption, transport infrastructure, and economic growth in MENA countries

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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Is Energy a Requirement for, or a Consequence of Economic Growth in Mauritius?

10.21203/rs.3.rs-90814/v1 ◽

2020 ◽

Author(s):

HArris Neeliah ◽

Boopen SEETANAH

Keyword(s):

Economic Growth ◽

Energy Consumption ◽

Voluntary Contraction ◽

Net Energy ◽

Omitted Variables ◽

Production Models ◽

Long Run ◽

Short Run ◽

Growth Production ◽

Dynamic Time

Abstract The non-reproducible nature of energy, coupled to its essentiality either as a direct or an intermediary input, makes it a crucial factor of production. We posit that it is, a complement to capital and labor and should be included in growth production models. Mauritius is a net energy importer, hence information about the nexus between energy consumption and economic growth is central to policy-making. This paper attempts to analyze this relationship for Mauritius within a multivariate framework over the period 1961 to 2019. The work adopts a dynamic time series framework (VECM approach) to account for dynamism, causality, endogeneity and omitted variables. Empirical results reveal long-run and short-run elasticities of energy consumption on economics growth of 0.33 and 0.17 respectively, thus giving credence to the thesis that energy is an important growth determinant in Mauritius. We also uncovered bi-directional causality between energy consumption and economic growth in both the long-run and the short-run. Therefore, unexpected and/ or voluntary contraction in either economic growth or energy consumption could result in a ‘feedback effect’ and dent either.JEL: Q4, O1

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The Impact of Industrialization, Trade Openness, Financial Development, and Energy Consumption on Economic Growth in Indonesia

Economies ◽

10.3390/economies9040174 ◽

2021 ◽

Vol 9 (4) ◽

pp. 174

Author(s):

Khalid Eltayeb Elfaki ◽

Rossanto Dwi Handoyo ◽

Kabiru Hannafi Ibrahim

Keyword(s):

Economic Growth ◽

Energy Consumption ◽

Least Squares ◽

Financial Development ◽

Correction Term ◽

Trade Openness ◽

Ordinary Least Squares ◽

Distributed Lag ◽

Long Run ◽

The Impact

This study aimed to scrutinize the impact of financial development, energy consumption, industrialization, and trade openness on economic growth in Indonesia over the period 1984–2018. To do so, the study employed the autoregressive distributed lag (ARDL) model to estimate the long-run and short-run nexus among the variables. Furthermore, fully modified ordinary least squares (FMOLS), dynamic least squares (DOLS), and canonical cointegrating regression (CCR) were used for a more robust examination of the empirical findings. The result of cointegration confirms the presence of cointegration among the variables. Findings from the ARDL indicate that industrialization, energy consumption, and financial development (measured by domestic credit) positively influence economic growth in the long run. However, financial development (measured by money supply) and trade openness demonstrate a negative effect on economic growth. The positive nexus among industrialization, financial development, energy consumption, and economic growth explains that these variables were stimulating growth in Indonesia. The error correction term indicates a 68% annual adjustment from any deviation in the previous period’s long-run equilibrium economic growth. These findings provide a strong testimony that industrialization and financial development are key to sustained long-run economic growth in Indonesia.

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INTERACTION BETWEEN ENERGY CONSUMPTION AND ECONOMIC GROWTH IN INDIA

International Journal of Research -GRANTHAALAYAH ◽

10.29121/granthaalayah.v5.i4.2017.1795 ◽

2017 ◽

Vol 5 (4) ◽

pp. 62-71 ◽

Cited By ~ 1

Author(s):

Nandakumar ◽

Devasia ◽

Thomachan

Keyword(s):

Economic Growth ◽

Energy Consumption ◽

World Bank ◽

Energy Use ◽

Annual Data ◽

Sample Period ◽

Development Indicators ◽

Long Run ◽

World Development

This Paper examines the relation between energy use and GDP percapita of India. It used the annual data from 1971-2013, obtained from World Development Indicators of World Bank for India. The variables used in this study are – Percapita GDP and Energy consumption in Kilograms of oil equivalent (Kgoe). The result shows long run relation between energy use and GDP percapita. The result also shows that Energy Use granger causes GDP percapita of India for the sample period.

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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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Revisited the Relationship Between Economic Growth and Transport Infrastructure in India: An Empirical Study

The Indian Economic Journal ◽

10.1177/00194662211063535 ◽

2021 ◽

pp. 001946622110635

Author(s):

Prabir Kumar Ghosh ◽

Soumyananda Dinda

Keyword(s):

Economic Growth ◽

Dynamic Models ◽

Composite Index ◽

Principal Component ◽

Transport Infrastructure ◽

Positive Contribution ◽

Model Framework ◽

Vector Error Correction ◽

Long Run ◽

The Relationship

This study empirically re-examines the relationship between transport infrastructure and economic growth in India for the period 1990–2017. Multivariate dynamic models are applied to estimate the relationship between economic growth and different modes of transport infrastructure namely road, rail and air transports in the vector error correction model framework. The results reveal that road and air transports have significant positive contribution to economic growth in the long-run while rail transport is insignificant. This study further examines the said issue using unit free index variables and has constructed a composite index of transport infrastructure using principal component analysis to analyse the nexus between aggregate transport infrastructure and economic growth in India in the post globalisation era. The results of the study indicate the bidirectional causality between aggregate transport infrastructure and economic growth. Results of this study suggest incorporating feedback issue in policy formulations. JEL Codes: C22, O18, R4

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Does transportation infrastructure impact economic growth in India?

Journal of Facilities Management ◽

10.1108/jfm-03-2021-0032 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Sreenu Nenavath

Keyword(s):

Economic Growth ◽

Economic Development ◽

Positive Impact ◽

Transport Infrastructure ◽

Causality Test ◽

Content Type ◽

Long Run ◽

Short Run ◽

The Government ◽

Determinants Of Economic Growth

Purpose This paper aims to show a long run and causal association between economic growth and transport infrastructure. Design/methodology/approach In this study, the authors use ARDL models through the period 1990 – 2020 to investigate the relationship between transport infrastructure and economic growth in India. Findings The infrastructure has a positive impact on economic growth in India for the long run. Moreover, Granger causality test demonstrates a unidirectional relationship between transport infrastructure to economic development. Stimulatingly, the paper highlights the effect of air infrastructure statistically insignificant on economic growth in the long and short-run period. Originality/value The original outcome from the study delivers an inclusive depiction of determinants of economic growth from transport infrastructure in India, and these findings will help the policymakers to frame policies to improve the transport infrastructure. Hence, it is proposed that the government of Indian should focus more to upsurge the transport infrastructure for higher economic development.

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On the restricted form of energy-growth nexus: a global level VECM approach and the historical structural breaks

International Journal of Energy Sector Management ◽

10.1108/ijesm-09-2019-0009 ◽

2020 ◽

Vol 14 (6) ◽

pp. 1205-1220

Author(s):

Luís Miguel Marques ◽

José Alberto Fuinhas ◽

António Cardoso Marques

Keyword(s):

Economic Growth ◽

Energy Consumption ◽

Positive Impact ◽

Global Level ◽

Global Energy ◽

Content Type ◽

Energy Growth ◽

Restricted Form ◽

Long Run ◽

The Impact

Purpose The purpose of this paper is to focus on global energy consumption using the economic growth nexus, the prevalent energy hypothesis at a global level and the impact of the main historical events assessed for the period from 1965 to 2015. Design/methodology/approach Given the confirmed presence of endogeneity and cointegration between energy consumption and economic growth, a vector error correction with structural dummies model was used. Furthermore, the impulse-response functions and variance decomposition were computed to evaluate the variables’ dynamics. Findings Bi-directional causality running from energy consumption to economic growth was found, both in the short and long-run, supporting the feedback hypothesis. It is proved that the 2008 crisis impacted on the global energy–growth nexus. Furthermore, there is evidence of the impact of the 1990s oil price shock on the nexus. Innovations in energy consumption have a positive impact on economic growth; however, this impact tends to be null in the long run. Practical implications The results suggest that at a global level, any energy policy should be carefully designed in order not to hamper economic growth. Countries should not remain indifferent to the policies that other countries might follow. Very few historical crises impacted on the global energy–growth nexus. Originality/value This paper offers a different approach to the study of the energy–growth nexus. The energy–growth nexus is analysed in the major macroeconomic aggregate. Global variables reveal their relevance as a benchmark in the energy–growth nexus. Furthermore, this paper arrives at some conclusions about how historical crises impact on global relationships.

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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 ◽

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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Do High Oil Prices Obstruct the Transition to Renewable Energy Consumption?

Sustainability ◽

10.3390/su12114689 ◽

2020 ◽

Vol 12 (11) ◽

pp. 4689 ◽

Cited By ~ 3

Author(s):

Shahriyar Mukhtarov ◽

Jeyhun I. Mikayilov ◽

Sugra Humbatova ◽

Vugar Muradov

Keyword(s):

Economic Growth ◽

Renewable Energy ◽

Energy Consumption ◽

Negative Impact ◽

Oil Prices ◽

Oil Price ◽

Renewable Energy Consumption ◽

Long Run ◽

Carbon Dioxide Co2 ◽

The Impact

The study analyzes the impact of economic growth, carbon dioxide (CO2) emissions, and oil price on renewable energy consumption in Azerbaijan for the data spanning from 1992 to 2015, utilizing structural time series modeling approach. Estimation results reveal that there is a long-run positive and statistically significant effect of economic growth on renewable energy consumption and a negative impact of oil price in the case of Azerbaijan, for the studied period. The negative impact of oil price on renewable energy consumption can be seen as an indication of comfort brought by the environment of higher oil prices, which delays the transition from conventional energy sources to renewable energy consumption for the studied country case. Also, we find that the effect of CO2 on renewable energy consumption is negative but statistically insignificant. The results of this article might be beneficial for policymakers and support the current literature for further research for oil-rich developing countries.

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