Carbon Dioxide Emissions and Economic Growth: A Bivariate Co-integration Analysis for Two Emerging Markets of India and China

2019 ◽  
Vol 24 (1) ◽  
pp. 9-22
Author(s):  
Rakesh Shahani ◽  
Kamya Raghuvansi
Keyword(s):  
Economic Growth ◽  
Carbon Dioxide ◽  
Emerging Markets ◽  
Co2 Emissions ◽  
Serial Correlation ◽  
Functional Form ◽  
Lm Test ◽  
Integration Test ◽  
Per Capita ◽  
India And China

The article investigates the co-integrating relation between carbon dioxide (CO2) emissions and economic growth of India and China: the two emerging markets of Asia. The article also tries to test the functional form of EKC as applicable to India and China. The study takes annual data for the 55 year period from 1960–2014 and the variables included are GDP per capita (a proxy for economic growth) and CO2 emissions per capita (a proxy for the environmental degradation). The co-integrating relation has been tested using Johansen (1988) co-integration test which is supplemented with VAR-VECM Model at p-1 lags with error correction mechanism showing adjustment between short- and long-run equilibrium. The diagnostics include stationarity, parameter stability and structural breaks (using Chow breakeven test & CUSUM plots) and serial correlation (using VEC-LM test). The empirical results showed long-term co-integration between GDP and CO2 emissions for India but not for China with lagged ECM term for India with a value of 0.0466 showed that the 4 per cent of the dis-equilibrium be corrected in same year itself. The stationary test showed that both our variables were stationary either at I(1) or I(2) but none of these were at levels. The null of serial correlation showed no serial correlation. The Chow and Stability tests revealed that for CO2 emissions in India, there was a break in 2009. VEC Granger causality tests showed that there was uni-directional causality for India flowing from GDP to CO2 emissions. EKC functional form of Cubic representation was proved for China where the curve was found to be ‘N’ shaped but EKC could not be proved in case of India.

Is Environment Degradation a Pre-condition to Economic Growth? A Case of India and China

2021 ◽  
pp. 097226292110340
Author(s):  
Rakesh Shahani ◽  
Nitin Khaneja
Keyword(s):  
Economic Growth ◽  
Error Correction ◽  
Environmental Degradation ◽  
Forest Area ◽  
Land Area ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Integration Test ◽  
Per Capita ◽  
India And China

This study is an attempt to model the co-integrating relation between economic growth and environmental degradation for two countries namely India and China. Although CO2 emissions has been the proxy for environmental degradation for most research papers, the study also includes a supplementary proxy environment variable viz forest area as a percentage of land area reflecting the depleting green cover. Thus, the study includes gross domestic product (GDP) per capita as the dependent variable and two regressors as carbon dioxide emissions per capita and forest area as a percentage of land area. The study also includes two additional regressors as trade as a percentage of GDP (proxy for trade openness) and domestic credit to the private sector (proxy for financial development), all converted to natural log terms, and the relation between the variables has been tested using autoregressive distributed lag bounds co-integration approach. The results of the study showed that long-run ‘F’ bounds co-integration test of autoregressive distributed lag was accepted for India but was rejected in case of China. For India, temporal causality was also seen to flow from forest area to per capita GDP with negative cause–effect relation, which was confirmed by Toda and Yamamoto (1995, Journal of Econometrics, 66(1–2), 225–250) causality results. Further with respect to India with a significant co-integration results, vector error correction model was worked out and the results showed that error correction (ECM) coefficient (which was found to be negative and significant) showed that the process of movement towards equilibrium was unexpectedly slow at a rate less than 0.01% per period. The main contribution of the study was to include a new proxy ‘forest area’ for environmental degradation and to empirically prove that with the decrease in forest cover there was a rise in economic growth.

scholarly journals Poverty, Income Inequality and Economic Growth in Nigeria (1981-2019)

2021 ◽  
Author(s):  
Chinonye Emmanuel Onwuka
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Error Correction ◽  
Serial Correlation ◽  
Series Data ◽  
National Bureau ◽  
Chi Square ◽  
Correction Technique ◽  
Lm Test ◽  
Integration Test

Abstract This study empirically examined the relationship between poverty, income inequality and economic growth in Nigeria. The study used time series data from National Bureau of Statistics (NBS) and Central Bank of Nigeria (CBN) Statistical Bulletin between the periods from 1981 to 2019. The study employed the use of Augmented Dickey Fuller test, Co integration test and Error Correction technique. The unit root test results indicated that all the variables were stationary at first difference and co-integration test confirmed a long run relationship among the variables. The error correction model shows that about 96 percent of the discrepancy between the actual and the equilibrium value of economic growth is corrected or eliminated each year. The coefficient of determination (R2) is 0.68 which shows that about 68 percent variations in the economic growth were explained by the independent variables . Furthermore, the Breusch-Godfrey Serial Correlation LM Test shows that the probability of the chi-square (2) is 0.2775 and this is greater than 0.05 at 5% significance level. This therefore confirms the absence of serial correlation. Also, the Breusch-Pagan-Godfrey Heteroscadaticity test indicates that the probability of chi-square (5) is 0.1242 and this is greater than 0.05 at 5% significant level. This also confirms the absence of heteroscedasticity in the model. From the study, the findings revealed that income inequality has a negative relationship with economic growth in the country while poverty was found to be positively related to economic growth. Similarly, the findings also revealed that poverty and income inequality has an insignificant effect on economic growth in Nigeria. Based on the findings, it can be concluded that poverty and income inequality has not significant relationship with economic growth in Nigeria. Thus, the study concludes that there is need for government of the country to come up with an all-inclusive policy and programme that will be targeted to the poor and give them ample opportunities to improve their welfare.

scholarly journals Management of Environmental Performance and Impact of the Carbon Dioxide Emissions (CO2) on the Economic Growth in the GCC Countries

2019 ◽  
pp. 252-268 ◽  
Author(s):  
H. Dkhili ◽  
L. B. Dhiab
Keyword(s):  
Economic Growth ◽  
Carbon Dioxide ◽  
Co2 Emissions ◽  
Environmental Performance ◽  
Carbon Dioxide Emissions ◽  
Environmental Kuznets Curve ◽  
Co2 Emission ◽  
Kuznets Curve ◽  
Gcc Countries ◽  
Integration Test

This paper summarizes the arguments and counterarguments within the scientific discussion on the issue the Management of Environmental Performance and the Carbon Dioxide Emissions (CO2) on the Economic Growth, with an innovative study in the context of the GCC countries. The main goal of the paper is to examine empirically the environmental Kuznets curve hypothesis for the GCC countries. The methodological tool of this contribution tries to measure the effect of the emission of the CO2 on the Growth Economic and environmental performance. The main purpose of the research is focused on the empirical approach justified by the use of a dynamic panel modeling on a sample of the GCC countries during the period of 2002-2018. Systematization literary sources and approaches for solving the problem of the reaction of the development of the Environmental Performance with the level of the the Carbon Dioxide Emissions (CO2) and the economic growth. The study employed a GMM model system. Subsequently, the authors displayed a Panel Co-integration test of Pedroni (2004), the Kao Residual Co-integration test (1999), and the Granger causality tests. The results found unidirectional causal relationships between economic growth and the entire variable of the sample, except the variable CO2 emission. These relationships are statistically significant at the level of 5%. For the relation between Economic Growth and CO2 emission, one the hypothesis of the paper was checking a non-significant and unidirectional relationship. The results showed a long-run unidirectional causality between the variables and implied that Economic Growth in the GCC countries has a positive and significant unidirectional relation with Environment Performance, trade openness, foreign direct investment, and investment. The results confirm the existence of a negative relationship as insignificant, and unidirectional, between economic growth and CO2 emissions in the GCC countries. Finally, this finding doesn’t support the validity of the EKC hypothesis and provide information's to take the necessary policy suggestions to maintain the environmental performance and limit the average of the CO2 emissions. The results of the research can be useful for the GCC countries to avoid the higher level of Carbon Dioxide Emissions (CO2) and maintain a good Environmental Performance. Keywords: environmental performance, Environmental Kuznets Curve, CO2 emissions.

Economic Growth And Carbon Dioxide Emissions: The Environmental Kuznets Curve Hypothesis In Yemen

2021 ◽  
Vol 2021 (68) ◽  
pp. 42-58
Author(s):  
Essa Alhannom ◽  
Ghaleb Mushabab
Keyword(s):  
Economic Growth ◽  
Carbon Dioxide ◽  
Energy Consumption ◽  
Co2 Emissions ◽  
Carbon Dioxide Emissions ◽  
Environmental Kuznets Curve ◽  
Trade Openness ◽  
Kuznets Curve ◽  
Per Capita ◽  
Environmental Kuznets Curve Hypothesis

Abstract This study investigates the validity of the Environmental Kuznets Curve hypothesis in Yemen and the causal relationships between Carbon dioxide emissions, per capita income, energy consumption, trade openness, and industrial share to GDP. ARDL bounds testing approach to cointegration, Error Correction Model, and Toda-Yamamoto procedure to Granger causality techniques were employed on annual data covering the period from 1990 to 2010. long run relationship between CO2 emissions and its determinants with significant effects for per capita GDP and trade openness, whereas, energy consumption and trade openness appear to be important determinants of CO2 emissions in the short run. Besides, based on Narayan and Narayan (2010) approach, it is found that the EKC hypothesis does not hold in Yemen and therefore the effect of per capita income on CO2 emissions is monotonically increasing. Toda-Yamamoto causality test proved the existence of bidirectional causal relationships between economic growth and CO2 emissions, between energy consumption and economic growth, and between trade openness and energy consumption

scholarly journals Desacoplamento entre as Emissões de CO2 e o PIB

2016 ◽  
Vol 2 (3) ◽  
pp. 37-53
Author(s):  
Yves Rocha De Salles Lima ◽  
Tatiane Stellet Machado ◽  
Joao Jose de Assis Rangel
Keyword(s):  
Economic Growth ◽  
Co2 Emissions ◽  
International Energy Agency ◽  
The United States ◽  
Oil Price ◽  
Gdp Per Capita ◽  
Energy Agency ◽  
The Us ◽  
Per Capita ◽  
The One

The objetive of this work is to analyze the variation of CO2 emissions and GDP per capita throughout the years and identify the possible interaction between them. For this purpose, data from the International Energy Agency was collected on two countries, Brazil and the one with the highest GDP worldwide, the United States. Thus, the results showed that CO2 emissions have been following the country’s economic growth for many years. However, these two indicators have started to decouple in the US in 2007 while in Brazil the same happened in 2011. Furthermore, projections for CO2 emissions are made until 2040, considering 6 probable scenarios. These projections showed that even if the oil price decreases, the emissions will not be significantly affected as long as the economic growth does not decelerate.

scholarly journals The travel-related carbon dioxide emissions of atmospheric researchers

2008 ◽  
Vol 8 (2) ◽  
pp. 7373-7389 ◽  
Author(s):  
A. Stohl
Keyword(s):  
Carbon Dioxide ◽  
Co2 Emissions ◽  
Information Exchange ◽  
Carbon Dioxide Emissions ◽  
Radiative Forcing ◽  
Global Climate ◽  
Air Travel ◽  
Ozone Production ◽  
Per Capita ◽  
Carbon Dioxide Co2

Abstract. Most atmospheric scientists agree that greenhouse gas emissions have already caused significant changes to the global climate system and that these changes will accelerate in the near future. At the same time, atmospheric scientists who – like other scientists – rely on international collaboration and information exchange travel a lot and, thereby, cause substantial emissions of carbon dioxide (CO2). In this paper, the CO2 emissions of the employees working at an atmospheric research institute (the Norwegian Institute for Air Research, NILU) caused by all types of business travel (conference visits, workshops, field campaigns, instrument maintainance, etc.) were calculated for the years 2005–2007. It is estimated that more than 90% of the emissions were caused by air travel, 3% by ground travel and 5% by hotel usage. The travel-related annual emissions were between 1.9 and 2.4 t CO2 per employee or between 3.9 and 5.5 t CO2 per scientist. For comparison, the total annual per capita CO2 emissions are 4.5 t worldwide, 1.2 t for India, 3.8 t for China, 5.9 t for Sweden and 19.1 t for Norway. The travel-related CO2 emissions of a NILU scientist, occurring in 24 days of a year on average, exceed the global average annual per capita emission. Norway's per-capita CO2 emissions are among the highest in the world, mostly because of the emissions from the oil industry. If the emissions per NILU scientist derived in this paper are taken as representative for the average Norwegian researcher, travel by Norwegian scientists would nevertheless account for a substantial 0.2% of Norway's total CO2 emissions. Since most of the travel-related emissions are due to air travel, water vapor emissions, ozone production and contrail formation further increase the relative importance of NILU's travel in terms of radiative forcing.

scholarly journals PERTUMBUHAN PENDUDUK, INFLASI DAN KORUPSI: ANALISIS EMPIRIS ENVIRONMENTAL KUZNETS CURVE (EKC) DI KAWASAN ASEAN PERIODE 2002-2016

2019 ◽  
Vol 1 (3) ◽  
pp. 71
Author(s):  
Muhammad Fajri Setia Trianto ◽  
Evi Yulia Purwanti
Keyword(s):  
Economic Growth ◽  
Population Growth ◽  
Co2 Emissions ◽  
Environmental Kuznets Curve ◽  
Secondary Data ◽  
Gdp Per Capita ◽  
Environmental Damage ◽  
Kuznets Curve ◽  
Per Capita ◽  
The Impact

The economy that continues to grow has the impact of environmental damage. This study aims to prove empirically the Environmental Kuznets Curve (EKC) hypothesis by analyzing the relationship of economic growth with environmental damage as measured by GDP per capita, and CO2 emissions. The data used are secondary data in the form of data on GDP per capita, CO2 emissions, population growth, inflation, and control of corruption in 10 countries in the ASEAN region in 2002-2016. Data analysis using the Fixed Effect model. The results show that there is a relationship between economic growth and environmental damage that forms an inverted U curve. Economic growth will initially have a positive effect on environmental damage so that at a point of economic growth negatively affects environmental damage. By adding control variables: population growth, inflation and corruption, inflation and corruption positively impact environmental damage, while population negatively affect environmental damage.

scholarly journals The Impact of Remittances on Poverty Alleviation in Selected Emerging Markets

2018 ◽  
Vol 21 (2) ◽  
pp. 51-68 ◽  
Author(s):  
Kunofiwa Tsaurai
Keyword(s):  
Economic Growth ◽  
Emerging Markets ◽  
Fixed Effects ◽  
Poverty Reduction ◽  
Ordinary Least Squares ◽  
Income Per Capita ◽  
Per Capita ◽  
Migrant Remittances ◽  
The Impact ◽  
Poverty Levels

The study explored the impact of remittances on poverty in selected emerging markets. On the theoretical front, the optimistic view argued that remittances inflow into the labour exporting country reduces poverty whereas the pessimistic view proponents said that remittances dependence syndrome retards both economic growth and income per capita. Separately, using two measures of poverty [the poverty headcount ratio at US $1.90 and US $3.10 a day (% of population)] as dependent variables, the fixed effects approach produced results which supported the remittances led poverty reduction (optimistic) hypothesis whereas the pooled ordinary least squares (OLS) framework found that remittances inflow into the selected emerging markets led to an increase in poverty levels. The implication of the findings is that emerging markets should put in place policies that attract migrant remittances in order to reduce poverty levels. They should avoid over‑reliance on remittances as that might retard economic growth and income per capita.

scholarly journals Reduction of CO2 Emissions Due to Energy Use in Crete-Greece

2016 ◽  
Vol 6 (1) ◽  
pp. 23 ◽  
Author(s):  
John Vourdoubas
Keyword(s):  
Carbon Dioxide ◽  
Energy Consumption ◽  
Co2 Emissions ◽  
Carbon Dioxide Emissions ◽  
Fossil Fuels ◽  
Energy Use ◽  
Heating Oil ◽  
Per Capita ◽  
Reduction Of Co2 ◽  
Negative Growth

Use of fossil fuels in modern societies results in CO2 emissions which, together with other greenhouse gases in the atmosphere, increase environmental degradation and climate changes. Carbon dioxide emissions in a society are strongly related with energy consumption and economic growth, being influenced also from energy intensity, population growth, crude oil and CO2 prices as well as the composition of energy mix and the percentage of renewable energies in it.The last years in Greece, the severe economic crisis has affected all sectors of the economy, has reduced the available income of the citizens and has changed the consumers’ behavior including the consumption of energy in all the activities. Analysis of the available data in the region of Crete over the period 2007-2013 has shown a significant decrease of energy consumption and CO2 emissions due to energy use by 25.90% compared with the reduction of national G.D.P. per capita over the same period by 25.45% indicating the coupling of those emissions with the negative growth of the economy. Carbon dioxide emissions per capita in Crete in 2013 are estimated at 4.96 tons. Main contributors of those emissions in the same year were electricity generation from fuel and heating oil by 64.85%, heating sector by 3.23% and transportation by 31.92%.

An econometric study of carbon dioxide (CO2) emissions, energy consumption, and economic growth of Pakistan

2012 ◽  
Vol 6 (4) ◽  
pp. 518-533 ◽  
Author(s):  
Matloub Hussain ◽  
Muhammad Irfan Javaid ◽  
Paul R. Drake
Keyword(s):  
Economic Growth ◽  
Carbon Dioxide ◽  
Energy Consumption ◽  
Environmental Pollution ◽  
Granger Causality ◽  
Time Series Data ◽  
Series Data ◽  
Future Research ◽  
Content Type ◽  
Per Capita

PurposeThe purpose of this paper is to examine the relationship among environmental pollution, economic growth and energy consumption per capita in the case of Pakistan. The per capital carbon dioxide (CO2) emission is used as the environmental indicator, the commercial energy use per capita as the energy consumption indicator, and the per capita gross domestic product (GDP) as the economic indicator.Design/methodology/approachThe investigation is made on the basis of the environmental Kuznets curve (EKC), using time series data from 1971 to 2006, by applying different econometric tools like ADF Unit Root Johansen Co‐integration VECM and Granger causality tests.FindingsThe Granger causality test shows that there is a long term relationship between these three indicators, with bidirectional causality between per capita CO2 emission and per capita energy consumption. A monotonically increasing curve between GDP and CO2 emission has been found for the sample period, rejecting the EKC relationship, implying that as per capita GDP increases a linear increase will be observed in per capita CO2 emission.Research limitations/implicationsFuture research should replace the economic growth variable, i.e. GDP by industrial growth variable because industrial sector is major contributor of pollution by emitting CO2.Practical implicationsThe empirical findings will help the policy makers of Pakistan in understanding the severity of the CO2 emissions issue and in developing new standards and monitoring networks for reducing CO2 emissions.Originality/valueEnergy consumption is the major cause of environmental pollution in Pakistan but no substantial work has been done in this regard with reference to Pakistan.

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