Does financial development and trade openness enhance industrial energy consumption? A sustainable developmental perspective

2019 ◽  
Vol 30 (6) ◽  
pp. 1297-1313 ◽  
Author(s):  
Salman Haider ◽  
Masudul Hasan Adil
Keyword(s):  
Energy Efficiency ◽  
Energy Consumption ◽  
Financial Development ◽  
Trade Openness ◽  
Value Added ◽  
Sustainable Growth ◽  
Content Type ◽  
Long Run ◽  
Industrial Energy ◽  
Industrial Energy Consumption

Purpose The purpose of this paper is investigate the dynamic linkages among industrial energy use, industrial value added, financial development (FD) and trade openness, in case of India. The study covers the annual frequency data on both aggregate and disaggregate variables for the period 1971–2016. Design/methodology/approach The autoregressive distributed lag bounds testing approach is applied to examine the long-run relation among variables under consideration. Also, Johansen and Juselius (1990) and vector error-correction mechanism results confirm the result of cointegration. Furthermore, non-linear relationship in the model is also tested. Findings It has been found that there exists long-run relationship among variables. Long-run estimates show that increasing FD leads to more energy uses. Hence, FD should be directed in such a way that it incentivises firms to invest in energy-efficient technology. Furthermore, it is also found that study supports the evidence of conservative hypothesis, which supports that the energy conservation policy should be adopted in the industrial sector. Energy efficiency programme needs to be designed very carefully to achieve a higher level of energy efficiency. This leads to a sustainable growth and low carbon emission. Originality/value This paper examines the recent trend in Indian industrial energy consumption and does a comprehensive analysis using a robust econometric method. We have developed a lucid model to examine the deriving factors of industrial energy consumption.

Analysis and forecast of Tianjin’s industrial energy consumption

2017 ◽  
Vol 11 (1) ◽  
pp. 46-64 ◽  
Author(s):  
Hongqing Zhu ◽  
Xiaoling Ge ◽  
Yang Wang ◽  
Zequn Ding
Keyword(s):  
Energy Efficiency ◽  
Energy Consumption ◽  
Energy Saving ◽  
Industrial Structure ◽  
Added Value ◽  
Average Error ◽  
Content Type ◽  
Industrial Energy ◽  
Industrial Energy Efficiency ◽  
Industrial Energy Consumption

Purpose This paper aims to study the present situation of Tianjin industrial energy consumption carbon emissions and put forward constructive suggestions for future energy-saving emission reduction work. Design/methodology/approach Using the energy consumption data form the Tianjin’s Industrial Energy Efficiency Guide (TJBS, 2009-2013) and Tianjin’s Statistical Yearbook (NBS, 2006-2012), some models were able to predict the future with a high degree of accuracy. Findings With an average error of 3.06 per cent for the logistic regression model and an average error of 2.03 per cent for the gray model, the R2 for the energy elasticity model is 0.99158. It also indicated that between 2008 and 2012, the energy consumption per unit of industrial added value decreased by approximately 33.61 per cent. These results show that energy-saving efforts and the optimization of the industrial structure have increased the energy efficiency of Tianjin. Originality/value The authors think that their contribution refers to a combination between methodology of forecasting and industrial energy consumption.

scholarly journals Technological Energy Efficiency Improvements in Cement Industries

2021 ◽  
Vol 13 (7) ◽  
pp. 3810
Author(s):  
Alessandra Cantini ◽  
Leonardo Leoni ◽  
Filippo De Carlo ◽  
Marcello Salvio ◽  
Chiara Martini ◽  
...  
Keyword(s):  
Energy Efficiency ◽  
Energy Consumption ◽  
Descriptive Analysis ◽  
Cement Industry ◽  
Cement Plant ◽  
Improve Energy Efficiency ◽  
Energy Needs ◽  
Industrial Energy ◽  
Industrial Energy Consumption ◽  
Alternative Solutions

The cement industry is highly energy-intensive, consuming approximately 7% of global industrial energy consumption each year. Improving production technology is a good strategy to reduce the energy needs of a cement plant. The market offers a wide variety of alternative solutions; besides, the literature already provides reviews of opportunities to improve energy efficiency in a cement plant. However, the technology is constantly developing, so the available alternatives may change within a few years. To keep the knowledge updated, investigating the current attractiveness of each solution is pivotal to analyze real companies. This article aims at describing the recent application in the Italian cement industry and the future perspectives of technologies. A sample of plant was investigated through the analysis of mandatory energy audit considering the type of interventions they have recently implemented, or they intend to implement. The outcome is a descriptive analysis, useful for companies willing to improve their sustainability. Results prove that solutions to reduce the energy consumption of auxiliary systems such as compressors, engines, and pumps are currently the most attractive opportunities. Moreover, the results prove that consulting sector experts enables the collection of updated ideas for improving technologies, thus giving valuable inputs to the scientific research.

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

Economies ◽  
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.

The impact of financial development, economic growth and energy consumption on environmental degradation

2015 ◽  
Vol 26 (5) ◽  
pp. 666-682 ◽  
Author(s):  
Madhu Sehrawat ◽  
A K Giri ◽  
Geetilaxmi Mohapatra
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Financial Development ◽  
Environmental Degradation ◽  
Series Data ◽  
Development Economic ◽  
Content Type ◽  
Indian Economy ◽  
Long Run ◽  
The Impact

Purpose – The purpose of this paper is to investigate the impact of financial development, economic growth and energy consumption on environment degradation for Indian economy by using the time series data for the period 1971-2011. Design/methodology/approach – The stationary properties of the variables are checked by ADF, DF-GLS, PP and Ng-Perron unit root tests. The long-run relationship is examined by implementing the Autoregressive Distributed Lag bounds testing approach to co-integration and error correction method (ECM) is applied to examine the short-run dynamics. The direction of the causality is checked by VECM framework and variance decomposition is used to predict exogenous shocks of the variables. Findings – The empirical evidence confirms the existence of long-run relationship among the variables. Financial development appears to increase environmental degradation in India. The main contributors to environmental degradation are: economic growth, energy consumption financial development and urbanization. The results also lend support to the existence of environmental Kuznets curves for Indian economy. Research limitations/implications – The present study suggests that environmental degradation can be reduced at the cost of economic growth or energy efficient technologies should be encouraged to enhance the domestic product with the help of financial sector by improving environmental friendly technologies from advanced economies. Originality/value – This paper proposes to make a contribution to the existing literature through examining the relationship between financial development and environmental degradation in Indian economy during 1971-2011 by employing modern econometric techniques.

Does remittance inflow stimulate electricity consumption in India? An empirical insight

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Malayaranjan Sahoo ◽  
Narayan Sethi
Keyword(s):  
Energy Demand ◽  
Structural Break ◽  
Trade Openness ◽  
Electricity Consumption ◽  
Sustainable Growth ◽  
Content Type ◽  
Environment Policy ◽  
Sustainable Environment ◽  
Long Run ◽  
The Face

PurposeThe purpose of this paper is to examine whether remittance inflow stimulate electricity consumption in India with other macroeconomic variables such as FDI, trade openness and urbanization in energy demand function from 1975–2017.Design/methodology/approachWe have applied structural break and co-integration tests for stationarity and long-run relationship between the variables. The Toda–Yamamatoo causality is employed for investigation of causal relationship between the variables, and robustness of causality linkages is also tested by applying innovative accounting approach (IAA).FindingsOur empirical analysis shows there is presence of long-run relationship among the variables. We find that remittance inflows stimulate electricity consumption in India. Industrialization is positively linked with electricity demand. However, trade openness declines the electricity consumption, but urbanization increases it. Furthermore, remittances inflows cause electricity consumption.Originality/valueOn the basis of findings, we conclude that due to positive impacts of remittances inflows, trade openness and urbanization, policymakers in the Indian economy need to be careful while designing sustainable environment policy. Otherwise, any sustainable environment policy in the name of protecting green environment will hamper the growth of remittance inflows, urbanization and FDI. If this exists, it may be argued that sustainable growth in India will not be possible in the face of sustainable environment policy.

Does trade openness affects global carbon dioxide emissions

2020 ◽  
Vol 31 (1) ◽  
pp. 32-53 ◽  
Author(s):  
Mohd Arshad Ansari ◽  
Salman Haider ◽  
N.A. Khan
Keyword(s):  
Carbon Dioxide ◽  
Saudi Arabia ◽  
Energy Consumption ◽  
Time Series Data ◽  
Structural Break ◽  
Trade Openness ◽  
Series Data ◽  
Content Type ◽  
Long Run ◽  
The Usa

Purpose The purpose of this paper is to analyze the effect of economic growth, international trade and energy consumption on the global carbon dioxide (CO2) emissions, in the case of top CO2 emitters, namely, USA, Japan, Canada, Iran, Saudi Arabia, UK, Australia, Italy, France and Spain using the annual data from 1971 to 2013. Design/methodology/approach For this purpose, the time series, data technique is applied. Unit root test with structural break and the bounds testing approach for cointegration in the presence of structural break is tested. Finally, a vector error correction model for the Granger causality test is applied to detect the direction of causality. The authors have used the techniques that will help in examining the structural break in the time series data. Findings The results reveal that their exists a long-run relationship between CO2 emissions and its determinants in the USA, Canada, Iran, Saudi Arabia, the UK, Australia, Italy, France and Spain, energy consumption is the main determinant of carbon dioxide (CO2) emissions in the long run and for direction of causality, the authors found bidirectional causality in the long run between energy consumption and CO2 emissions in the USA, Canada, Iran, Saudi Arabia and the UK, and Granger causality running in opposite direction in the case of Australia from CO2 emissions to energy consumption was analyzed. In terms of growth-trade-pollution nexus (USA, Canada, Iran and France) hold one-way causality running from economic growth and trade openness to CO2 emissions (IV) the environmental Kuznets curve hypothesis is validated only for the USA. Robust policy implications can be derived from this study. First, without harming the economy, these countries can reduce the use of energy consumption for lower pollution. Second, the amount of trade should be decreased to lower the emissions because the authors find that an increase in trade does Granger cause to CO2 emissions in the long run. Originality/value There has been no study that investigated the relationship between CO2 emissions, real income, consumption of energy and international trade in the environmental Kuznets relation for the top CO2 emitter’s countries over the period of 1971–2013. The authors did a comparative study of the empirical finding among these nations.

GDP, energy consumption and financial development in Italy

2018 ◽  
Vol 12 (1) ◽  
pp. 28-43 ◽  
Author(s):  
Cosimo Magazzino
Keyword(s):  
Energy Consumption ◽  
Granger Causality ◽  
Financial Development ◽  
Oil Prices ◽  
Content Type ◽  
Real Gdp ◽  
Long Run ◽  
Causality Tests ◽  
Granger Causality Tests ◽  
Toda And Yamamoto

Purpose This study aims to explore the relationship among energy consumption, real income, financial development and oil prices in Italy over the period 1960-2014. Design/methodology/approach Different econometric techniques – such as the General Methods of Moment (GMM) or the AutoRegressive Distributed Lags (ARDL) bounds test – are usually used in the empirical analysis. Moreover, both the Toda and Yamamoto causality tests and the Granger causality tests are applied to the data. Findings The results of unit root and stationarity tests show that the variables are non-stationary at levels, but stationary in first-differences form, or I(1). The ARDL bounds F-test reveals an evidence of a long-run relationship among the four variables at 1% significance level. Moreover, an increase in real GDP and oil prices has a significant effect on energy consumption in the long run. The coefficients of estimated error correction term are also negative and statistically significant. In addition, the paper explores the causal relationship between the variables by using a VAR framework, with Toda and Yamamoto but also Granger causality tests, within both multivariate and bivariate systems. The findings indicate that energy consumption is affected by real GDP. Originality/value The study also filled the literature gap of applying ARDL technique to examine this relevant issue for Italy.

The Kyoto Protocol and CO2 emission: is India still hibernating?

2018 ◽  
Vol 11 (2) ◽  
pp. 152-168 ◽  
Author(s):  
Aaqib Ahmad Bhat ◽  
Prajna Paramita Mishra
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Kyoto Protocol ◽  
Empirical Relationship ◽  
Trade Openness ◽  
Content Type ◽  
Long Run ◽  
Short Run ◽  
International Climate ◽  
The Impact

Purpose The purpose of this study is to investigate the relationship between CO2 emission and its core determinants, namely, economic growth, energy consumption and trade openness in the pre- and post-Kyoto Protocol era in the Indian economy. Design/methodology/approach The study uses the ARDL bounds test to analyze the long-run and short-run empirical relationship between the interested variables for the time period 1971-2013. A dummy variable representing the Kyoto Protocol regime has been included to examine the likely impact of international climate policies (Kyoto Protocol) in controlling and reducing CO2 emission in India. Findings The empirical results indicate the possibility of increase in CO2 emission from India even after the Kyoto Protocol regime. Evidence of inverted U-shaped relationship between CO2 emission and economic growth (EKC hypothesis) has been confirmed. However, compared to increase in CO2 emission, the magnitude of decrease due to improvement in economic growth is relatively lesser. Energy consumption and trade openness are also found to increase CO2 emission. Research limitations/implications The results indicate that there is a lack of commitment on the part of India to curtail CO2 emission, which can be disastrous for future prosperity. Financing the renewable electricity generation, R&D subsidy and tax-free renewable energy seems to be imperative to address this catastrophic problem. Originality/value This study is the first attempt to analyze the impact of international climate policy (Kyoto Protocol) on CO2 emission by incorporating a fixed dummy in the ARDL specifications.

Trade Openness, Financial Development Index and Economic Growth

2014 ◽  
Vol 6 (4) ◽  
pp. 362-375 ◽  
Author(s):  
Dogga Satyanarayana Murthy ◽  
Suresh Kumar Patra ◽  
Amaresh Samantaraya
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Trade Openness ◽  
Output Growth ◽  
Domestic Demand ◽  
Policy Implications ◽  
Content Type ◽  
Development Index ◽  
Long Run ◽  
Financial Development Index

Purpose – The purpose of this article is to examine the inter-relationship and direction of causality among three macroeconomic variables such as trade liberalization, financial development and economic growth. Design/methodology/approach – The empirical analysis is based on the principal component analysis as method to construct financial development index (FDI), augmented Dickey–Fuller and Phillips–Perron tests as the unit root test, Johansen’s co-integration test and VECM for direction of causality in the long run among TOP, FDI and economic growth. Findings – The empirical results confirmed that there exists a long-run association among trade openness, financial development and economic growth. This study has also found that there is bidirectional causality between financial development and growth. However, the causality runs from growth to finance is stronger than that from finance to growth. This study also observed unidirectional causality that runs from financial development and economic growth to trade openness. Research limitations/implications – The policy implications that could be drawn from the present study is that, initiation of financial reforms to improve the size of financial system would lead to higher economic growth. Another key implication from this study is that because trade openness has no effect on both domestic financial sector development and output growth, it would be better to deploy the resources into creating a sustained domestic demand rather than concentrating more on the external front in general and trade openness in particular. Originality/value – The study constructs a summary IFD for India by taking into account four broad financial development indicators for the period 1971-2012. The present paper also suggests that it would be better to deploy the resources to create a sustained domestic demand rather than concentrating more on the external front in general and trade openness in particular.

scholarly journals Examining the Industrial Energy Consumption Determinants: A Panel Bayesian Model Averaging Approach

Energies ◽  
2019 ◽  
Vol 13 (1) ◽  
pp. 70
Author(s):  
Djula Borozan ◽  
Luka Borozan
Keyword(s):  
Energy Consumption ◽  
Energy Use ◽  
Early Stage ◽  
Value Added ◽  
Entrepreneurial Activity ◽  
Different Types ◽  
Industrial Energy ◽  
Framework Conditions ◽  
Industrial Energy Consumption ◽  
The Impact

The paper explores the impact of early stage and established entrepreneurs on industrial energy consumption across European countries for the period 2001–2017. It proposes that industrial energy consumption is a complex multifaceted result of value-added activities conducted by different types of entrepreneurs and the quality of macroeconomic and entrepreneurial framework conditions, which support or hinder entrepreneurial activity and consequently energy use. After selecting the most appropriate model using a panel Bayesian averaging model approach, a fixed effects panel regression analysis was conducted to investigate more deeply the impact of different types of entrepreneurs on industrial energy consumption. The results show that early stage and established entrepreneurs exhibit different behavioral patterns with respect to energy use. The former follows, although statistically insignificantly, a U-shaped energy use curve. By contrast, the latter follows statistically significantly an inverted U-shaped curve. Additionally, the results confirm the important role of the governments and other policy authorities in creating favorable framework conditions, which can support the changes in behavioral energy practices and the development of new or established businesses aiming for sustainability.

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