Exploring the effects of economic growth, population density and international trade on energy consumption and environmental quality in India

2020 ◽  
Vol 14 (6) ◽  
pp. 1177-1203 ◽  
Author(s):  
Mohammad Mafizur Rahman
Keyword(s):  
Economic Growth ◽  
International Trade ◽  
Energy Consumption ◽  
Population Density ◽  
Environmental Quality ◽  
Annual Data ◽  
Causality Test ◽  
Content Type ◽  
Explanatory Variables ◽  
Positive Effects

Purpose This paper aims to investigate the effects of economic growth, population density and international trade on energy consumption and environmental quality in India. Design/methodology/approach Taking annual data of 1971-2011, autoregressive distributed lag bounds testing technique is applied to explore the long run link between the series. The Granger causality test is used to determine the direction of causality between the variables. Findings The obtained results confirm the cointegration of variables, and economic growth and population density are found to have significant positive effects on energy consumption in both the short and long runs. CO2 emissions are also positively and significantly affected by population density and energy consumption, and negatively affected by economic growth. Originality/value The paper is original and valuable in the sense that it has considered two relevant additional explanatory variables, namely, population density and trade openness, which got little attention in the past. This research is an improvement over the previous studies because it has looked at the separate effects of explanatory variables on energy consumption, in addition to the effects on carbon emissions. Therefore, the findings of this research are more reliable because this adopted methodology is better and extensive, and the authors have properly addressed the issue of omitted variable bias.

scholarly journals The drivers of economic growth in China and India: globalization or financial development?

2017 ◽  
Vol 16 (1) ◽  
pp. 54-84 ◽  
Author(s):  
Magda Kandil ◽  
Muhammad Shahbaz ◽  
Mantu Kumar Mahalik ◽  
Duc Khuong Nguyen
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Emerging Market ◽  
Annual Data ◽  
Test Results ◽  
Causality Test ◽  
Content Type ◽  
China And India ◽  
Integration Test ◽  
The Impact

Purpose Using annual data from 1970 to 2013 for China and India, this paper aims to examine the impact of globalization and financial development on economic growth by endogenizing capital and inflation and drawing comparisons between the two fastest growing emerging market economies. Design/methodology/approach In the long run, co-integration test results indicate that financial development increases economic growth in China and India. Findings The results also reveal that globalization accelerates economic growth in India but, surprisingly, impairs economic growth in China, as it increases competition for exports. The results furthermore disclose that acceleration in capitalization and inflation, as a proxy for aggregate demand, are positively linked to economic growth in China and India. Originality/value Causality test results indicate that both financial development and economic growth are interdependent. In contrast, causality runs from higher economic growth to increased globalization in India, while the results do not support long-term causality between globalization and economic growth in China.

The dynamic relationship between CO2 emission, international tourism and energy consumption in Pakistan: a cointegration approach

2019 ◽  
Vol 74 (4) ◽  
pp. 761-779 ◽  
Author(s):  
Yaping Liu ◽  
Tafazal Kumail ◽  
Wajahat Ali ◽  
Farah Sadiq
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Granger Causality ◽  
Environmental Quality ◽  
Energy Use ◽  
Ardl Model ◽  
Content Type ◽  
Dynamic Relationship ◽  
Long Run ◽  
Growth Energy

Purpose The present study aims to investigate the dynamic relationship between international tourist receipts, economic growth, energy use and carbon dioxide (CO2) emissions in Pakistan over the period 1980-2016. Many researchers have investigated the link between tourism and CO2 emissions, but there is no clear picture as the results are contradictory. This study is an attempt to compliment the literature related to tourism and environmental quality. Design/methodology/approach The study adopted the autoregressive distributed lagged (ARDL) model to investigate the short- and long-run estimates simultaneously. The study further applied Granger causality to find out the direction of causalities. To arrive at long-run robust estimates, the study used dynamic ordinary least squares (DOLS) model. Findings The results found that tourist receipts have no significant impact on environmental quality, while growth and energy consumption are the main determinants of CO2 emissions in Pakistan. The Granger causality test confirmed unidirectional causalities from GDP and energy consumption toward CO2 emissions, while tourist receipts do not affect environmental quality. DOLS technique confirmed the long-run estimates of ARDL model. Research limitations/implications The result of the study complements the literature by adding new evidence regarding the nexus of tourism and environment. Findings of the study are important for policymakers and regulatory bodies to place their focus on the development of tourism sector (services sector) rather than energy-intensive manufacturing activities to sustain the growth of the country in higher quartiles, as tourism receipts have no significant negative externalities toward environment, while energy use is one of the key determinants of environmental degradation. Originality/value This study used time series data over the period 1980-2016 for Pakistan to inspect the dynamic relationship between tourist receipts, economic growth, energy consumption and CO2 emissions.

Economic growth, renewable and nonrenewable energy consumption nexus in India

2020 ◽  
Vol 14 (4) ◽  
pp. 777-792 ◽  
Author(s):  
Shruti Shastri ◽  
Geetilaxmi Mohapatra ◽  
A.K. Giri
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Renewable Energy Consumption ◽  
Causality Test ◽  
Content Type ◽  
Long Run ◽  
The Impact ◽  
Asymmetric Causality ◽  
Nonrenewable Energy

Purpose The purpose of this paper is to examine the nexus among economic growth, nonrenewable energy consumption and renewable energy consumption in India over the period 1971-2017. Design/methodology/approach This study uses nonlinear autoregressive distributed lags model and asymmetric causality test to explore nonlinearities in the dynamic interaction among the variables. Findings The findings indicate that the impact of nonrenewable energy consumption and renewable energy consumption on the economic growth is asymmetric in both long run and short run. In long run, a positive shock in nonrenewable energy consumption and renewable energy consumption exerts a positive impact on growth. However, the negative shocks in nonrenewable energy consumption produce larger negative effects on the growth. The results of nonlinear causality test indicate a unidirectional causality from nonrenewable energy consumption and renewable energy consumption to economic growth and thus support “growth hypothesis” in context of India. Practical implications The findings imply that policy measures to discourage nonrenewable energy consumption may produce deflationary effects on economic growth in India. Further, the findings demonstrate the potential role of renewable energy consumption in promoting economic growth. Originality/value To the best of the authors’ knowledge, this study is the first attempt to explore nonlinearities in the relationship between economic growth and the components of energy consumption in terms of renewable and nonrenewable energy consumption.

A comparative analysis of environmental quality and Kuznets curve between two newly industrialized economies

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kanon Kumar Sen ◽  
Md. Thasinul Abedin
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Environmental Quality ◽  
Environmental Kuznets Curve ◽  
Carbon Dioxide Emission ◽  
Kuznets Curve ◽  
Per Capita Gdp ◽  
Content Type ◽  
China And India ◽  
Per Capita

PurposeDue to large amounts of coal burning, huge carbon dioxide emission and poor environmental quality, it is important to identify whether environmental Kuznets curve exists in China and India since in downward period of environmental Kuznets curve, economic growth in these countries will largely contribute to world environmental quality. Further, it helps to make a comparative analysis between China and India on how economic growth will contribute to the environmental quality in both upward and downward period of environmental Kuznets curve due to energy consumption.Design/methodology/approachThis study uses the data of carbon dioxide emission, per capita GDP and energy consumption from 1972 to 2017 to identify individual and panel-level environmental Kuznets curve of China and India. Before going to regression and causality analysis, unit root and cointegration tests are performed.FindingsThis study finds the existence of environmental Kuznets curve in China and India at both individual and panel level. Further, due to high energy consumption, environmental quality in China will deteriorate at a lower rate in the long run than that of India. Next, the increase in economic growth or per capita GDP in the long run will deteriorate environmental quality at a lower rate in China than that of India. Besides, with the zero level of energy consumption and per capita GDP, the environmental quality of China will be worse than that of India. However, increase in per capita GDP after threshold level will improve environmental quality in India at a higher rate than that of China.Research limitations/implicationsIt helps to formalize the comparative relationship between the two large Asian economies by knowing the influence of economic growth on environmental degradation due to energy consumption. However, this study cannot conclude exactly when China and India can avail the downturn in environmental Kuznets curve.Originality/valueIt firstly establishes a link among energy consumption, economic growth and environmental quality between China and India including comparative pace in both upward and downward period of environmental Kuznets curve.

Renewable and non-renewable energy consumption, economic growth and carbon emission in BRICS

2020 ◽  
Vol 14 (1) ◽  
pp. 248-260 ◽  
Author(s):  
Umer Jeelanie Banday ◽  
Ranjan Aneja
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Gdp Growth ◽  
Renewable Energy Consumption ◽  
Causality Test ◽  
Cross Sectional ◽  
Content Type ◽  
Growth Hypothesis

Purpose The purpose of this study is to find the causal relationship among energy consumption (renewable energy and non-renewable energy), gross domestic product (GDP) growth and carbon dioxide (CO2) emission for Brazil, Russia, India, China and South Africa for the period of 1990-2017. Design/methodology/approach The study uses bootstrap Dumitrescu and Hurlin panel causality test, which accepts heterogeneity and dependency in cross-sectional units across emerging countries. Findings The results find unidirectional causality from GDP to CO2 for India, China, Brazil, South Africa and no causality for Russia. The causality results from renewable energy consumption to GDP show that there is evidence of feedback hypothesis for China and Brazil, growth hypothesis for Russia, conservation hypothesis for South Africa and neutrality hypothesis for India. However, the results accept growth hypothesis for India, China, Russia, Brazil and neutrality hypothesis for South Africa. In the case of renewable energy and non-renewable energy consumption to CO2 emission, the results find convergence in India, Russia and South Africa and divergence in China and Brazil. Originality/value It is the first study that investigates the part of balanced economic growth, instead of simply financial development in those economies. Numerous studies have used diverse factors such as economic development, renewable energy, non-renewable energy and CO2 emission; however, the examination has used total GDP growth rate, energy consumption and CO2 emissions.

Can conventional energy be replaced by renewable energy without harming economic growth in non-oil-MENA? Evidence from Granger causality in VECM

2019 ◽  
Vol 15 (2) ◽  
pp. 159-168
Author(s):  
Badry Hechmy
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Granger Causality ◽  
Renewable Energy Consumption ◽  
Causality Test ◽  
Content Type ◽  
Investigation Methods ◽  
The Relationship

Purpose The purpose of this paper is to examine the relationship between renewable energy consumption and economic growth in non-oil countries in the Middle East and North Africa (non-oil-MENA) during the period from 2000 to 2014. The Pedroni (2000) test shows that there is a long-term cointegration relationship between those variables; however, the Granger causality test in the vector error correction model (VECM) shows that this relationship is bidirectional in the short and long term. Thus, to ensure sustainable economic growth without pollution and to reduce dependence on abroad, renewable energies can be chosen as substitutes for conventional energies in the non-oil-MENA countries. Design/methodology/approach First, LLC and IPS unit root tests are used to test the variables stationarity; and, second, Pedroni panel cointegration and Engle–Granger causality by VECM analysis are used to check the relationship between the studied variables. Findings Empirical results show that the renewable energy consumption and economic growth are cointegrated and that there are two-way causal relationships between them in the long and in the short term. These countries must therefore encourage the consumption of renewable energy instead of traditional energy to reduce their dependence on energy from abroad and CO2 pollution. Originality/value The originality of this work lies in the measurements of the study variables and the empirical investigation methods used.

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

2015 ◽  
Vol 9 (3) ◽  
pp. 361-375 ◽  
Author(s):  
Masoud Mohammed Albiman ◽  
Najat Nassor Suleiman ◽  
Hamad Omar Baka
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Environmental Pollution ◽  
Impulse Response ◽  
Carbon Emission ◽  
Variance Decomposition ◽  
Causality Test ◽  
Content Type ◽  
Per Capita ◽  
Toda And Yamamoto

Purpose The purpose of this study is to investigate the dynamic relationship that exists between energy consumption, environmental pollution and per capita economic growth in Tanzania. The energy consumption is represented by electricity usage in kilowatt hours (kWh) per capita, while environmental pollution is represented by carbon emission per metric tons and economic growth by gross domestic product (GDP) per capita. Design/methodology/approach This investigation is made based on the Environmental Kuznets Curve using time series annual data from 1975 to 2013 by applying the more robust causality technique of Toda and Yamamoto non-Causality test (1995), Impulse response and Variance Decomposition, Augumented and Dickey–Fueller test and Philips and Perron Test of unit root tests. Findings Economic growth rate (LGDP) and energy consumption per capita (LENGY), both being unidirectional, cause environmental pollution through carbon emission (LCO2) in Tanzania. Interestingly, after using impulse response, a significant and positive economic growth (GDP per capita) was found due to shocks from electricity per capita (energy consumption) and carbon emission (LCO2) with time. The Variance Decomposition suggested that the percentage of the variations due to shocks or innovations of economic growth (LGDP) and energy consumption (LENGY) to carbon emission is very high and significant, accounting to 46 and 41 per cent, respectively, in 10 years to come. Research limitations/implications The study recommends that, in the future, the relationship be examined using super-exogeneity causality tests that takes into consideration the changes in policy or regime in contrast to Toda and Yamamoto. Furthermore, the addition of other variables such as fixed capital formation and labor force, which were not considered in this study, may result in strong correlation. Practical implications The results imply that the government of Tanzania can adopt environment conservation and energy saving policies without affecting its economic growth. As a matter of fact, to put a stop to persistent environmental pollution in Tanzania, the energy saving policy should be put in place rather quickly. It is imperative that the government implements policies and strategies that ensure continuous economic growth without forsaking the environment. Originality/value Despite the increase in carbon emissions, energy consumption and economic growth in Tanzania since 2000, to date, no previous work has been done to investigate their multivariate relationship. This is the first study that uses the Toda and Yamamoto non-Causality test, Impulse Response and Variance Decomposition Analysis to investigate a trivariate relationship of the variables mentioned above.

Research on the Dynamic Relationship between Energy Consumption Structure and Economic Growth in China

2014 ◽  
Vol 1010-1012 ◽  
pp. 1976-1979
Author(s):  
Li Jiang
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Energy Consumption ◽  
Granger Causality ◽  
Dynamic Equilibrium ◽  
Coal Consumption ◽  
Causality Test ◽  
Positive Effects ◽  
Equilibrium Relationship ◽  
The Impact

With the increasingly development of economy in China, economic growth and efficient use of energy is a hot topic in recent years, also China is under pressure of carbon emissions reductions during the process of economic development. This paper try to do a research to find weather the structure of energy consumption and economic growth exist long-term dynamic equilibrium relationship. Based on VAR model, though Granger causality test, impulse response and variance decomposition, combined with China's development of low-carbon economy, in the years between1978 to 2012 , four results has been showed: First, China's economic growth and energy consumption exist a stable long-run equilibrium relationship. Second, at the 1% level, there is a two-way Granger causality coal consumption and economic growth. Third, in lag 4, the energy consumption is produced positive effects on economic growth and the impact of coal consumption has maximum affect. Forth, the development and utilization of renewable energy is an effective way to solve China's economic development and energy constraints contradictory.

Do macroeconomic uncertainty and financial development cause environmental degradation? Evidence from an emerging economy

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bijoy Rakshit ◽  
Yadawananda Neog
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Financial Development ◽  
Environmental Degradation ◽  
Environmental Quality ◽  
Content Type ◽  
Inflation Volatility ◽  
Macroeconomic Uncertainty ◽  
Consumption Intensity

PurposeThe main purpose of this paper is to empirically investigate the effect of macroeconomic uncertainty on environmental degradation in India over the period 1971–2016. Additionally, this paper considers the role of financial development, energy consumption intensity and economic growth in explaining the variation of environmental degradation in India.Design/methodology/approachThe authors applied the power generalized autoregressive conditional heteroskedasticity model to measure inflation volatility and used it as a proxy for macroeconomic uncertainty. From a methodological perspective, the authors employ the autoregressive distributive lag bound testing model to establish the long-run equilibrium association between the variables. The Toda–Yamamoto causality approach has been used to examine the direction of causality between the variables.FindingsFindings suggest that macroeconomic uncertainty exerts a positive effect on carbon emissions, indicating that higher inflation volatility, as a proxy for macroeconomic uncertainty, hinders India's environmental quality. Financial development, economic growth and energy consumption intensity have also adversely impacted environmental quality.Practical implicationsThe negative association between macroeconomic uncertainty and environmental degradation calls for some stringent policy actions. While formulating policies to promote growth and maintain stability, policymakers and government stakeholders should take into account the environmental effects of macroeconomic policies. There is a need to implement more environmental-friendly technologies in the financial sector that could reduce carbon emission.Originality/valueTo the best of the authors' knowledge, this study is the first that considers the role of macroeconomic uncertainty along with financial development and energy intensity in an emerging economy like India.

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