An econometric study of energy consumption, carbon emissions and economic growth in South Asia: 1972-2009

2014 ◽  
Vol 11 (3) ◽  
pp. 182-195 ◽  
Author(s):  
Harishankar Vidyarthi
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
South Asia ◽  
Carbon Emissions ◽  
Content Type ◽  
Energy Mix ◽  
Long Run ◽  
Equilibrium Relationship ◽  
Short Run ◽  
Long Run Equilibrium

Purpose – The purpose of this paper is to empirically examine the relationship between energy consumption, carbon emissions and economic growth for a panel of five South Asian economies namely India, Pakistan, Bangladesh, Sri Lanka and Nepal over the period 1972-2009 within multivariate framework. Design/methodology/approach – The study uses Pedroni cointegration and Granger causality test based on panel vector error correction model to examine long-run equilibrium relationship and direction of causation in short run and long run between energy consumption, carbon emissions and economic growth in South Asia. Findings – Cointegration result indicates the long-run equilibrium relationship between economic growth, energy consumption and carbon emissions for panel. Causality results suggest that bidirectional causality exist between energy consumption-GDP, and unidirectional causality from carbon emissions to GDP and energy consumption in long run. However, energy consumption causes carbon emissions in short run. Practical implications – Implementing energy efficiency measures and reducing dependence on fossils fuels by scaling up carbon free energy resources like nuclear, renewables including hydropower in energy mix is necessary for sustainable and inclusive growth in the region. Originality/value – South Asia economies need to sacrifice economic growth for reducing the carbon emissions in long run if the region dependence on fossils fuels including coal, oil and natural gas in energy mix continues at same pace.

scholarly journals Economic Development, CO2 Emissions and Energy Use Nexus-Evidence from the Danube Region Countries

Energies ◽  
2021 ◽  
Vol 14 (11) ◽  
pp. 3165
Author(s):  
Eva Litavcová ◽  
Jana Chovancová
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Co2 Emissions ◽  
Carbon Emissions ◽  
Bounds Testing ◽  
Mutual Cooperation ◽  
Long Run ◽  
Short Run ◽  
Danube Region ◽  
The Impact

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.

Does Temperature Contribute to Environment Degradation? Pakistani Experience Based on Nonlinear Bounds Testing Approach

2020 ◽  
pp. 097215092091665 ◽  
Author(s):  
Muhammad Saeed Meo ◽  
Solomon Prince Nathaniel ◽  
Muhammad Murtaza Khan ◽  
Qasim Ali Nisar ◽  
Tehreem Fatima
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Carbon Emissions ◽  
Energy Use ◽  
Global Climate ◽  
Bounds Testing ◽  
Renewable Energy Consumption ◽  
Global Climate Changes ◽  
Long Run ◽  
Short Run

Many developing countries are acutely vulnerable to global climate changes. In Pakistan, carbon emissions are primarily contributed by the factor of energy production from oil, gas and coal. The objective of this study is to estimate the asymmetric impact of temperature, energy use, economic growth, water scarcity on CO2 emissions in Pakistan over their period of 1960–2016. Based on nonlinear bounds testing (NARDL) approach, it is confirmed that there is an asymmetric relationship between temperature and CO2 emission, while energy use, population growth and economic growth have a positive effect in the short run. In the long run, energy consumption and economic growth were found to increase emission, while a temperature decrease by 1 per cent leads to 5 per cent decrease in carbon emissions. Population and water availability also reduces emission in Pakistan. Further, the study also confirms the long-run relationship between the variables. The finding of the study noticeably supports the policy to increase renewable energy consumption.

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.

scholarly journals An analysis of IT software and service exports from India

2020 ◽  
Vol 4 (1) ◽  
pp. 3-25
Author(s):  
Manzoor Hassan Malik ◽  
Nirmala Velan
Keyword(s):  
Human Capital ◽  
Exchange Rate ◽  
Error Correction ◽  
Content Type ◽  
Long Run ◽  
External Demand ◽  
Equilibrium Relationship ◽  
Short Run ◽  
The Given ◽  
Long Run Equilibrium

PurposeThe aims of the paper are to investigate IT software and service export function for India. First, cointegration tests have been used to investigate the long-run equilibrium relationship of the given variables. Second, long-run coefficients and associated error correction mechanism are estimated.Design/methodology/approachAnnual time series data on IT software and service exports, human capital, exchange rate, investment in IT, external demand and openness index have been used for the present study during the period 1980–2017. The data are collected from the National Association of Software and Service Companies (NASSCOM), Planning Commission of India, University Grants Commission (UGC) of India, real effective exchange rate (REER) database and World Bank development indicators. Auto regressive distributed lag (ARDL) model is used to analyze both short-run and long-run dynamic behaviour of economic variables with appropriate asymptotic inferences.FindingsResults of the analysis show the stable long-run equilibrium relationship among the given variables. It is found that external demand, exchange rate, human capital and openness index have a substantial long-run impact on the IT software and service exports. We also found that the coefficient of error correction term is negative and significant at 1% of the level of significance, which confirms the existence of stable long-run relationship which means adjustment will take place when there is a short-run deviation to its long-run equilibrium after a shock.Research limitations/implicationsThere may be other determinants of software and service exports apart from those considered by the present study. Due to the non-availability of data, the study considers only important determinants that determine the software and service exports in India. The IT exports are an emerging and dynamic field of economic activity and the rate of change is so rapid that the relevance of individual factors may change over time. The study period is also limited to available data.Practical implicationsThe paper has implications for achieving sustainability in IT software and service exports growth. It is recommended that policies directed at improving the performance of IT software and service exports should largely consider the long-run behaviour of these variables.Originality/valueThis paper focuses on originality in the analysis of the relationship among the given variables including IT software and service exports, human capital, exchange rate, investment in IT, external demand and openness index in India. All the work has been done in original by the authors, and the work used has been acknowledged properly.

Financial development, energy consumption, technology, urbanization, economic output and carbon emissions nexus in BRICS countries: an empirical analysis

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chandrashekar Raghutla ◽  
Krishna Reddy Chittedi
Keyword(s):  
Energy Consumption ◽  
Financial Development ◽  
Emerging Economies ◽  
Carbon Emissions ◽  
Urban Population ◽  
Content Type ◽  
Economic Output ◽  
Long Run ◽  
Short Run ◽  
The Impact

PurposeThe study investigates the impact of financial development, urban population, technology and energy consumption on economic output and carbon emissions in Brazil, Russia, India, China and South Africa (BRICS) economies.Design/methodology/approachThe study uses Johansen Fisher type panel cointegration, fully modified ordinary least square and heterogeneous panel causality tests to examine long-run, long-run elasticities and short-run relationships. For conducting the tests, the study selected five emerging economies, i.e. Brazil, Russia, India, China and South Africa and used balanced panel data for the period between 1998 and 2016.FindingsThe empirical results confirm the presence of a long-run cointegration relationship among the variables. We find that financial development, technology and energy consumption have a considerable positive impact on economic output. Also, financial development, urban population and technology help reduce carbon (CO2) emissions and ensure an improved environmental quality in the long run in the five emerging economies. In the short run, a bidirectional causal relationship is noticed between financial development and CO2 emissions.Practical implicationsClean energy, technological development and investments by public–private partnerships are required in the public and private sectors to reduce carbon emissions. This not only ensures improved environmental quality but also increases energy efficiency, thereby reducing dependency on traditional energy consumption.Originality/valueAs its contribution to the extant literature, the study examines the impact of financial development, energy consumption, technology, urbanization, economic output and carbon emissions in BRICS economies. The findings of the research suggest both the governments and policymakers of these five emerging economies to develop more effective policies toward bolstering the financial development and increasing the use of technology. These, in turn, ensure sustainable development with low CO2 emission in the future and, eventually, pushing those five emerging market economies toward sustainable economic growth.

Structural change and economic growth in selected emerging economies

2015 ◽  
Vol 14 (2) ◽  
pp. 98-116 ◽  
Author(s):  
Muhamed Zulkhibri ◽  
Ismaeel Naiya ◽  
Reza Ghazal
Keyword(s):  
Economic Growth ◽  
Structural Change ◽  
Panel Cointegration ◽  
Growth Equation ◽  
Content Type ◽  
Long Run ◽  
Equilibrium Relationship ◽  
The Impact ◽  
The Relationship ◽  
Long Run Equilibrium

Purpose – This paper aims to investigate the relationship between structural change and economic growth for a panel of four developing countries, namely, Malaysia, Nigeria, Turkey and Indonesia over 1960-2010. Design/methodology/approach – The study extent the growth equation by incorporating degree of openness, labour and investment and construct structural change indices – modified Lilien index and the norm of absolute values. It utilizes the recently developed panel cointegration techniques to test and estimate the long-run equilibrium of the growth equation. Findings – The results confirm that structural change and economic growth are cointegrated at the panel level, indicating the presence of long-run equilibrium relationship. However, the impact of structural change on economic growth seems to be small and evolve slowly. Originality/value – The findings indicate the need for policymakers to identify the binding constraints that impede growth and the importance of institutionalize policy to encourage investment in productive sectors.

scholarly journals Influencing Factors of New Energy Development in China: Based on ARDL Cointegration and Granger Causality Analysis

2021 ◽  
Vol 9 ◽  
Author(s):  
Fuliang Xue ◽  
Xiaotong Feng ◽  
Jing Liu
Keyword(s):  
Economic Growth ◽  
Power Generation ◽  
Energy Consumption ◽  
Carbon Emissions ◽  
Industrial Structure ◽  
Energy Development ◽  
Energy Prices ◽  
Long Run ◽  
New Energy ◽  
Short Run

The development and competition of the new energy industry will become an important battlefield of a new round of technological and industrial competition. This study use the annual data from 1990 to 2019 to understand the factors affecting the development of new energy development in China by examining the long-run and causal relationship among the proportion of new energy consumption, energy prices, carbon emissions, industrial structure, economic growth, and new energy power generation in a multivariate model for China. The findings indicate that in the long run, new energy generation is positively linked with new energy consumption, whereas energy prices and carbon emissions have a negative and significant impact on new energy consumption. In the short run, economic growth can promote the growth of new energy consumption. However, this positive effect is gradually formed and is unlikely to happen soon. However, whether the impact of industrial structure optimization on new energy consumption is a long- or short-run estimate is not significant. Causality results suggest that a one-way Granger causality exists between each factor and new energy consumption in different lag orders, except for industrial structure. Re-examining the energy price mechanism and carbon emission mechanism policy, maintaining stable GDP growth, increasing the installed capacity of new energy power generation, and improving power generation conversion efficiency are vital for ensuring new energy development.

scholarly journals Investigating the Asymmetric Effect of Economic Growth on Environmental Quality in the Next 11 Countries

Energies ◽  
2021 ◽  
Vol 14 (2) ◽  
pp. 491
Author(s):  
Gideon Kwaku Minua Ampofo ◽  
Jinhua Cheng ◽  
Edwin Twum Ayimadu ◽  
Daniel Akwasi Asante
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
South Korea ◽  
Carbon Emissions ◽  
Carbon Emission ◽  
Policy Implications ◽  
Asymmetric Effect ◽  
Long Run ◽  
Short Run ◽  
Asymmetric Causality

This study investigates the asymmetric cointegration and causal relationships between economic growth, carbon emissions, and energy consumption in the next eleven (11) countries over the period 1972–2013. The nonlinear autoregressive distributed lag (NARDL) bounds testing approach and nonpragmatic Granger causality tests are employed. This research’s empirical results have entrenched vital relationships that have significant policy implications. We affirm nonlinear cointegration among the variables in Bangladesh, Iran, Turkey, and Vietnam. The long-run asymmetric effect outcomes indicate a definite boom in economic growth, significantly increases carbon emission in Turkey, and a decline in Vietnam. Additionally, a positive shock to energy consumption significantly increases the carbon emission in Bangladesh, Iran, and Turkey, but a decrease in emissions in Vietnam. Findings from the Wald test reveal a long-run asymmetric effect between carbon emission and economic growth in Bangladesh, Iran, and Vietnam, and for Iran, an asymmetric short-run impact. Long-run and short-run asymmetric effects between carbon emission and energy consumption in Bangladesh and Iran. In terms of asymmetric causality results, bidirectional causality between carbon emission and economic growth was noted in Bangladesh and Turkey, and a unidirectional causality from economic growth to carbon emission in Egypt and South Korea. Energy consumption causes carbon emission in Bangladesh, Egypt, Pakistan, South Korea, and not vice versa. We determined a bidirectional asymmetric causality relationship between carbon emission and energy consumption in Vietnam and a unidirectional causality link from carbon emissions to Turkey’s energy consumption.

scholarly journals Environmental sustainability, trade and economic growth in India: implications for public policy

2020 ◽  
Vol 4 (2) ◽  
pp. 141-160
Author(s):  
Aparna Sajeev ◽  
Simrit Kaur
Keyword(s):  
Economic Growth ◽  
Carbon Emissions ◽  
Direct Investment ◽  
Economic Freedom ◽  
Trade Openness ◽  
Online Database ◽  
Size Of Government ◽  
Content Type ◽  
Long Run ◽  
Short Run

PurposeBased on the hypothesis of the environmental Kuznets curve (EKC), the purpose of this study is to investigate the relationship between environmental pollutants (as measured by CO2 emissions) and GDP for India, over the period 1980–2012. The presence of an inverted “U” shape relationship is examined while controlling for factors such as the degree of trade openness, foreign direct investment, oil prices, the legal system and industrialization.Design/methodology/approachTo verify whether the EKC follows a linear, quadratic or polynomial form, autoregressive distributed lag (ARDL) bounds testing approach for cointegration with structural breaks is adopted. The annual time series data for carbon emissions (CO2), economic growth (GDP), industrial development (industrialization), foreign direct investment and trade openness have been obtained from World Development Indicators online database. Crude oil price (international price index) for the period is collected from the International Monetary Fund. Data for total petroleum consumption are collected from the US Energy Information Agency. Data for economic freedom variables are from the Fraser Institute's Economic Freedom Index's online database.FindingsThe findings support the existence of inverted U-shaped EKC in the short-run, but not in the long-run. A linear monotonic relationship has also been estimated in select model specifications. Additionally, trade openness has been estimated to reduce emissions in models, which incorporate FDI. Else, where significant, its impact on carbon emissions is adverse. A rise in fuel price leads to reduction in carbon emissions across model specifications. Further, the lower size of government degrades the environment both in the long-run and short-run.Practical implicationsGiven the existence of the pollution haven hypothesis, wherein more trade and foreign direct investments cause environmental degradation, the paper proposes formulation of appropriate regulatory mechanisms that are environmentally friendly. Additionally, India's new economic policies, favoring liberalization, privatization and globalization, reinforces the need to strengthen environmental regulations.Originality/valueIncorporation of economic freedom as measured by the “Size of Government” in the EKC model is unique. “Size of Government” deserves a special mention. The rationale for including this explanatory variable is to understand whether countries with lower government size are more polluting. After all, theory does suggest that goods and services, which have higher social cost vis-à-vis private cost, shall be overproduced in economies that adopt more market-friendly policies, necessitating government intervention. In the study, size of government is measured as per the definition and methodology adopted by Fraser Institute's Economic Freedom of the World Index.

Energy consumption and growth in South Asia: evidence from a panel error correction model

2015 ◽  
Vol 9 (3) ◽  
pp. 295-310 ◽  
Author(s):  
Harishankar Vidyarthi
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
South Asia ◽  
Capital Formation ◽  
Fixed Capital ◽  
Gdp Per Capita ◽  
Content Type ◽  
Long Run ◽  
Fixed Capital Formation ◽  
Per Capita

Purpose The purpose of the paper is to empirically examine the relationship between energy consumption and economic growth for a panel of five South Asian economies, namely, India, Pakistan, Bangladesh, Sri Lanka and Nepal over the period from 1971 to 2010 within a multivariate framework. Design/methodology/approach The study uses Pedroni cointegration and Granger causality test based on panel vector error correction model to examine long-run equilibrium relationship and direction of causation in the short and long run between energy consumption and economic growth using energy inclusive Cobb–Douglas production function for a panel of five South Asia countries, namely India, Pakistan, Bangladesh, Sri Lanka and Nepal. Findings Pedroni’s panel cointegration test indicates the long-run equilibrium relationship between economic growth per capita, energy consumption per capita and real gross fixed capital formation per capita for panel. Further, 1 per cent increase in energy consumption per capita increases the gross domestic product (GDP) per capita by 0.8424 per cent for the panel. Causality results suggest bidirectional causality between energy consumption per capita, gross fixed capital formation per capita and GDP per capita in the long run and unidirectional causality running from energy consumption per capita and gross fixed capital formation per capita to GDP per capita in the short run. Practical implications These South Asian countries should implement an expansionary energy policies through improving the energy infrastructure, energy efficiency measures and exploiting massive renewables’ availability for low-cost, affordable clean energy access for all, especially in the yet unserved rural and remote areas for further stimulating economic growth. Originality/value Implementing energy efficiency measures and massive renewables development (wind, solar and hydropower) may help the affordable and clean energy access and reducing fossils fuel dependence and its associated greenhouse emissions in South Asia.

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