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.

scholarly journals Dynamic Relationship Between Energy and Economic Growth: Evidence from D8 Countries.

2011 ◽  
Vol 50 (4II) ◽  
pp. 437-458 ◽  
Author(s):  
Sarwat Razzaqi ◽  
Faiz Bilquees ◽  
Saadia . Sherbaz
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Energy Use ◽  
Demand And Supply ◽  
Dynamic Relationship ◽  
Long Run ◽  
Production And Consumption ◽  
Short Run ◽  
Oil Embargo ◽  
The Relationship

Energy sector has a vital influence on an economy, on both demand and supply sides. Therefore, energy production and consumption bear great importance for the developing world. The oil embargo of 1970‘s and its impact on major macroeconomic variables throughout the world attracted many economists to examine the relationship between energy and economic prosperity. The researchers have been unable to establish a definitive direction of causality between the two variables. The purpose of this study is to empirically investigate the dynamic relationship between energy use and economic growth in the D8 countries. The evidence gathered through application of VAR Granger Causality, Johansen Cointegration and VECM proves existence of short-run and long-run correlation between energy use and economic development in all countries. The results supported either uni-directional or bi-directional causality in the D8 countries except for Indonesia in short-run where non-causality was established between the two variables. JEL classifications: C22; Q43. Keywords: Energy Use, Economic Growth, D8, VAR Granger Causality, Cointegration, VECM

Does financial development improve environmental quality in Turkey? An application of endogenous structural breaks based cointegration approach

2018 ◽  
Vol 29 (2) ◽  
pp. 368-384 ◽  
Author(s):  
Javaid Ahmad Dar ◽  
Mohammad Asif
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Environmental Quality ◽  
Unit Root ◽  
Structural Breaks ◽  
Energy Use ◽  
Financial Sector ◽  
Content Type ◽  
Long Run ◽  
Endogenous Structural Breaks

Purpose The purpose of this paper is to investigate the long-run effect of financial sector development, energy use and economic growth on carbon emissions for Turkey, in presence of possible regime shifts over a period of 1960-2013. Design/methodology/approach Along with the conventional unit root tests, Zivot-Andrews unit root test with structural break has been employed to check the stationarity of variables. The cointegrating relationship between variables is investigated by using the autoregressive distributed lag bounds test and Hatemi-J threshold cointegration test. Findings The results confirm a cointegrating relationship between the variables. The long-run relationship between the variables has gone through two endogenous structural breaks in 1976 and 1986. Development of financial sector improves environmental quality whereas energy use and economic growth degrade it. The results challenge the validity of environmental Kuznets curve hypothesis in Turkish economy. Research limitations/implications The study uses domestic credit to private sector as a proxy for development of financial sector. The model can be improved by constructing an index of financial development instead of using a single determinant as a proxy for financial development. Practical implications The study may pave the way for policy makers to capture important environmental pollutants in better way and develop effective and efficient energy and economic policies. This may make significant contribution to curbing CO2 emissions while sustaining economic growth. Originality/value This is the only study to examine long-run impact of financial sector development on carbon emissions, using the threshold cointegration approach. Hence, the study is a gentle request to reduce the possible omitted variable econometric estimation bias and fill the gap in the existing literature.

Tourism, economic growth, energy consumption, and CO2 emissions in China

2020 ◽  
pp. 135481662091845 ◽  
Author(s):  
Jiekuan Zhang ◽  
Yan Zhang
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Granger Causality ◽  
Policy Implications ◽  
Long Run ◽  
Cointegration Tests ◽  
Short Run ◽  
Vecm Granger Causality ◽  
Growth Energy

In this article, we for the first time applied the vector error correction model (VECM) Granger causality approach to investigate the short-run and long-run causal relationships among tourism, economic growth, energy consumption, and carbon dioxide (CO2) emissions for 30 Chinese provinces over the period 2000–2017. The results implied that the analyzed variables became stationary at their first differences. The panel cointegration tests indicated the presence of a long-term equilibrium relationship among these four analyzed variables. Results from the VECM Granger causality tests suggested that the bidirectional short-term causalities were statistically confirmed between gross domestic product (GDP) and tourism. Additionally, we found that some unidirectional short-run causalities existed running from energy consumption to other analyzed variables and bidirectional long-run causalities existed between CO2 emissions and GDP, CO2 emissions and tourism, and GDP and tourism. Moreover, we also found the existence of unidirectional long-term causalities running from energy consumption to other analyzed variables. Based on these findings, we highlighted some key policy implications to develop China’s sustainable tourism.

scholarly journals An empirical study on income and energy consumption in Bangladesh

2019 ◽  
Author(s):  
Gazi Salah Uddin ◽  
Md. Mahmudul Alam ◽  
Wahid Murad
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Energy Use ◽  
Bounds Testing ◽  
Dynamic Relationship ◽  
Real Gdp ◽  
Long Run ◽  
Convergence Process ◽  
Cointegration Tests ◽  
Growth Hypothesis

This study investigates the inter-temporal causal relationship between energy consumption and economic growth in Bangladesh during the period 1971-2007. This issue is of fundamental importance for the developing economy of Bangladesh. We use the Autoregressive Distributive Lag (ARDL) bounds testing approach to cointegration tests to explore the dynamic relationship between energy consumption and economic growth in Bangladesh. We apply newly developed methods based on simulations that are robust to the violation of statistical assumptions especially when the sample size is small as is the case in this paper. The interesting results of the paper are that unidirectional causality runs from energy consumption to economic growth in Bangladesh and then restrictions on the use of energy could lead to a reduction in economic growth. There is a convergence process in the long-run dynamics of energy use to real GDP so that any shock in energy adjusts with real GDP by 2-2.5 year. The growth hypothesis suggests that energy consumption plays an important role in economic growth in Bangladesh

scholarly journals PENGARUH PERTUMBUHAN EKONOMI, PENGGUNAAN ENERGI DAN EKSPOR TERHADAP KUALITAS LINGKUNGAN DI INDONESIA

2018 ◽  
Vol 7 (2) ◽  
pp. 99
Author(s):  
Putriani Putriani ◽  
Idris Idris ◽  
Melti Roza Adry
Keyword(s):  
Economic Growth ◽  
Environmental Quality ◽  
Significant Influence ◽  
Energy Use ◽  
Short Term ◽  
Linear Effect ◽  
Long Run ◽  
The Government ◽  
Growth Energy

This study aims to determine the Influence of Economic Growth, Energy Use and Export to Environmental Quality in Indonesia. The method used is Errror Correction Model (ECM) method. The data used are time series from 1983-2016 collected through documentation from BP Statistical World Energy website, World Bank, Indonesian Central Bureau of Statistics. The results of this study show that in the short term economic growth in linear effect negatively and not significant while the quadratic bepengaruh positive and insignificant to environmental quality in Indonesia. In the long run economic growth in linear has a negative and significant influence while the quadratic bepengaruh positive and significant to the kuaitas environment. Long-term and short-term energy use has a negative and significant impact on environmental quality in Indonesia. Exports in the long run have a negative and significant influence, while short-term has a negative and insignificant effect on environmental quality. The results of this study provide information about the quality of the environment so that the government and the community can protect, supervise and improve the quality of the environment in Indonesia.

Economic growth, carbon dioxide emissions and energy consumption in Algeria: a wavelet coherence approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sidi Mohammed Chekouri ◽  
Abderrahim Chibi ◽  
Mohamed Benbouziane
Keyword(s):  
Economic Growth ◽  
Carbon Dioxide ◽  
Energy Consumption ◽  
Power Spectrum ◽  
Carbon Dioxide Emissions ◽  
Wavelet Coherence ◽  
Causality Test ◽  
Content Type ◽  
Long Run ◽  
Growth Energy

PurposeThe world is nowadays facing major environmental damage and climate change everywhere. Carbon dioxide emissions are major causes of such change. It is in this respect that the current study provides a fresh insight into the dynamic nexus between energy consumption (EC), economic growth (EG) and CO2 emissions in Algeria, as it is considered as one of the top CO2 emitters in Africa.Design/methodology/approachThe authors use the wavelet approaches and Breitung and Candelon (2006) causality test to gauge the association between EC, EG and CO2 emissions over the period 1971–2018. Specifically, this study implements the wavelet power spectrum (WPS) to identify the power and variability of each variable at different time scales. The wavelet coherence, phase differences and partial wavelet coherence are also used to assess the co-movement and lead lag relationship between economic growth, energy consumption and CO2 emissions over different time scale. Finally, Breitung and Candelon (2006) causality test is used to find the causality among variables.FindingsThe wavelet power spectrum results indicate that economic growth, energy consumption and CO2 emissions share common strong variance in the medium and long run. Furthermore, the wavelet coherence results suggest that there is a significant co-movement between EG and CO2 emissions, and EG is the leading variable for CO2 emissions and EC. The results also unveil that both EG and EC cause CO2 emissions both in short and long run. The results suggest that Algeria should take suitable measures towards the promotion of renewable energy sources.Originality/valueThe present empirical study filled the literature gap of applying the wavelet approach and frequency domain spectral causality test to examine this relevant issue for Algeria.

The relationship between financial development and economic growth in Eswatini (formerly Swaziland)

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Siphe-okuhle Fakudze ◽  
Asrat Tsegaye ◽  
Kin Sibanda
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Financial Development ◽  
Granger Causality Test ◽  
Causality Test ◽  
Content Type ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
The Relationship

PurposeThe paper examined the relationship between financial development and economic growth for the period 1996 to 2018 in Eswatini.Design/methodology/approachThe Autoregressive Distributed Lag bounds test (ARDL) was employed to determine the long-run and short-run dynamics of the link between the variables of interest. The Granger causality test was also performed to establish the direction of causality between financial development and economic growth.FindingsThe ARDL results revealed that there is a long-run relationship between financial development and economic growth. The Granger causality test revealed bidirectional causality between money supply and economic growth, and unidirectional causality running from economic growth to financial development. The results highlight that economic growth exerts a positive and significant influence on financial development, validating the demand following hypothesis in Eswatini.Practical implicationsPolicymakers should formulate policies that aims to engineer more economic growth. The policies should strike a balance between deploying funds necessary to stimulate investment and enhancing productivity in order to enliven economic growth in Eswatini.Originality/valueThe study investigates the finance-growth linkage using time series analysis. It determines the long-run and short-run dynamics of this relationship and examines the Granger causality outcomes.

scholarly journals INTERACTION BETWEEN ENERGY CONSUMPTION AND ECONOMIC GROWTH IN INDIA

2017 ◽  
Vol 5 (4) ◽  
pp. 62-71 ◽  
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.

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

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.

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

2019 ◽  
Vol 12 (3) ◽  
pp. 145 ◽  
Author(s):  
Vo ◽  
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.

Sign in / Sign up

Export Citation Format

Share Document