Investigating the Causal Linkage Among Economic Growth, Energy Consumption and CO2 Emissions in Thailand: An Application of the Wavelet Coherence Approach

2020 ◽  
Vol 10 (1) ◽  
pp. 17-26 ◽  
Author(s):  
Tomiwa Sunday Adebayo ◽  
Gbenga Daniel Akinsola
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Co2 Emissions ◽  
Time Series Data ◽  
Wavelet Coherence ◽  
Series Data ◽  
Energy Usage ◽  
Positive Correlation ◽  
Long Run ◽  
Growth Energy

The study aims to explore the causal linkage between CO2 emissions, economic growth and energy consumption in Thailand utilizing the wavelet coherence approach, conventional Granger and the Toda-Yamamoto causality techniques. In this study, In this study, time-series data spanning the period between 1971 and 2018 were used. No prior study has used the wavelet coherence approach to collect information on the association and causal interrelationship among these economic variables at different frequencies and timeframes in Thailand. The study objectives are structured to answer the following question: Does economic growth and energy consumption lead to CO2 emissions in Thailand?. The findings revealed that: (a) Changes in economic growth led to changes in CO2 emissions in Thailand at different frequencies (different scales) between 1971 and 2018. (b) A bidirectional causal relationship between CO2 emissions and energy consumption. (c) A positive correlation between CO2 emissions and energy usage in the short and long-run between 1971 and 2018. (d) A positive correlation between GDP growth and CO2 emissions in the short and long-run between 1971 and 2018. The study suggested that Thailand should initiate stronger policies towards enhancing the efficiency of energy and energy-usage programs to minimize unnecessary energy waste.

Empirical Analysis of the Relationship Between Energy Consumption, CO2 Emissions and Economic Growth in Tunisia

2020 ◽  
pp. 437-449
Author(s):  
Sana Essaber Jouini ◽  
Etidel Labidi
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Co2 Emissions ◽  
Time Series Data ◽  
Series Data ◽  
Causality Analysis ◽  
Significance Level ◽  
Conservation Policies ◽  
Long Run ◽  
Growth Energy

This paper examines the long run and causal relationship issues between economic growth, energy consumption and carbon emissions by using vector error correction model for the case of Tunisia within 1970-2010. Empirical results using time series data suggest an evidence of a long-run relationship between the variables at 5% significance level in Tunisia. A Granger causality analysis is conducted amongst the variables. The overall results indicate bidirectional causality between energy consumption and CO2 emissions and a unidirectional causality running from pollutant emissions to economic growth. But there is no direct relation between energy consumption and economic growth. Thus, our results reveal that in short term energy conservation policies, such as rationing energy consumption have no effect on the real output growth of Tunisia.

Empirical Analysis of the Relationship Between Energy Consumption, CO2 Emissions and Economic Growth in Tunisia

2017 ◽  
Vol 8 (2) ◽  
pp. 79-90 ◽  
Author(s):  
Sana Essaber Jouini ◽  
Etidel Labidi
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Co2 Emissions ◽  
Time Series Data ◽  
Output Growth ◽  
Pollutant Emissions ◽  
Series Data ◽  
Causality Analysis ◽  
Significance Level ◽  
Long Run

This paper examines the long run and causal relationship issues between economic growth, energy consumption and carbon emissions by using vector error correction model for the case of Tunisia within 1970-2010. Empirical results using time series data suggest an evidence of a long-run relationship between the variables at 5% significance level in Tunisia. A Granger causality analysis is conducted amongst the variables. The overall results indicate bidirectional causality between energy consumption and CO2 emissions and a unidirectional causality running from pollutant emissions to economic growth. But there is no direct relation between energy consumption and economic growth. Thus, our results reveal that in short term energy conservation policies, such as rationing energy consumption have no effect on the real output growth of Tunisia.

scholarly journals The Dynamic Relationship among Economic Growth, Energy Consumption and Environment in Iran

2015 ◽  
Vol 50 ◽  
pp. 118-128
Author(s):  
Hamid Amadeh ◽  
Parisa Kafi
Keyword(s):  
Economic Growth ◽  
Carbon Dioxide ◽  
Energy Consumption ◽  
Carbon Dioxide Emissions ◽  
Time Series Data ◽  
Series Data ◽  
Long Run ◽  
Integration Test ◽  
The Government ◽  
Growth Energy

In recent decades, environmental risks and hazards are more visible. These damages caused by a combination of factors such as population growth, economic growth, energy, and industrial activities. This study discusses long-run equilibrium relationship, short-term dynamic relationships and causal relationships between energy consumption, economic growth and the environment (carbon dioxide emissions) in Iran, by using time series data during 1971-2009, through Co integration test. Co integration test demonstrates that a long-run relationship exists among the three variables. It is obvious that carbon dioxide emissions will be increased by positive shock of energy consumption and economic growth, by a one percent increase in energy consumption and economic growth, carbon dioxide emissions will increase 55 and 43 percent respectively. The result of this study is important because of reducing carbon dioxide emissions from energy use and economic development matters. In other words, to reduce carbon dioxide emissions, the government should reduce the amount of Petroleum products in energy consumption, and it also improves the efficiency of using energy.

scholarly journals The relationship between energy consumption, economic growth and carbon dioxide emissions in Pakistan

2020 ◽  
Vol 6 (1) ◽  
Author(s):  
Muhammad Kamran Khan ◽  
Muhammad Imran Khan ◽  
Muhammad Rehan
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Co2 Emissions ◽  
Environmental Degradation ◽  
Carbon Dioxide Emissions ◽  
Time Series Data ◽  
Renewable Energy Sources ◽  
Series Data ◽  
Energy Sources

AbstractDeveloping countries are facing the problem of environmental degradation. Environmental degradation is caused by the use of non-renewable energy consumptions for economic growth but the consequences of environmental degradation cannot be ignored. This primary purpose of this study is to investigate the nexus between energy consumption, economic growth and CO2 emission in Pakistan by using annual time series data from 1965 to 2015. The estimated results of ARDL indicate that energy consumption and economic growth increase the CO2 emissions in Pakistan both in short run and long run. Based on the estimated results it is recommended that policy maker in Pakistan should adopt and promote such renewable energy sources that will help to meet the increased demand for energy by replacing old traditional energy sources such as coal, gas, and oil. Renewable energy sources are reusable that can reduce the CO2 emissions and also ensure sustainable economic development of Pakistan.

scholarly journals Investigating the Causal Relationships among Carbon Emissions, Economic Growth, and Life Expectancy in Turkey: Evidence from Time and Frequency Domain Causality Techniques

2021 ◽  
Vol 13 (5) ◽  
pp. 2924
Author(s):  
Husam Rjoub ◽  
Jamiu Adetola Odugbesan ◽  
Tomiwa Sunday Adebayo ◽  
Wing-Keung Wong
Keyword(s):  
Economic Growth ◽  
Life Expectancy ◽  
Frequency Domain ◽  
Causal Relationship ◽  
Carbon Emissions ◽  
Time Series Data ◽  
Wavelet Coherence ◽  
Series Data ◽  
Causal Relationships ◽  
Long Run

It is not a gainsaying that challenges to both healthy living and the environment are the result of deteriorating environmental quality with the attendant effect on environmental sustainability. To provide a solution to the issue, our study uses long time-series data from 1960 to 2018, and employs an overlapping generational model, the Bayer–Hanck cointegration test, wavelet coherence, Fourier Toda–Yamamoto, and Breitung–Candelon frequency-domain spectral causality tests to investigate the causal relationships among carbon emissions (CO2), economic growth (GDP), and life expectancy (LE) in Turkey. Different from the literature, we find a positive co-movement between life expectancy and CO2 and a positive correlation between LE and GDP at different scales; CO2 has a causal relationship with LE and a bidirectional causal relationship between LE and GDP, as well as short, medium, and long-run causal relationships with LE; GDP has medium and long-run causal relationships with LE, and LE has short, medium, and long-run causal relationships with GDP. Our findings guide policymakers on their policy decision-making that will address the energy consumption, environmental degradation, human health, environmental hazards, and allocation to science and technology in Turkey with the aim of ensuring overall sustainable development.

scholarly journals Environmental costs of political instability in Pakistan: policy options for clean energy consumption and environment

2021 ◽  
Author(s):  
Muhammad Tayyab Sohail ◽  
Muhammad Tariq Majeed ◽  
Parvez Ahmed Shaikh ◽  
Zubaria Andlib
Keyword(s):  
Energy Consumption ◽  
Co2 Emissions ◽  
Environmental Quality ◽  
Time Series Data ◽  
Political Instability ◽  
Political Stability ◽  
Clean Energy ◽  
Series Data ◽  
Environmental Damage ◽  
Long Run

Abstract Using time-series data of Pakistan from 1990 to 2019, this study explores the asymmetric effects of political instability on clean energy consumption and CO2 emissions. The results from the traditional ARDL model show that political stability lessens environmental damage by reducing CO2 emissions in the long run. However, when we used the nonlinear ARDL approach we found that political instability reduces the consumption of clean energy but also leads to damage environmental quality in long run in Pakistan. While political stability increases the consumption of clean energy but also helps to improve environmental quality in the short run in Pakistan. Thus, macroeconomic policies to promote expansion in clean energy consumption will directly stimulate green economic growth and environmental quality.

scholarly journals The Imperativeness of Environmental Quality in China Amidst Renewable Energy Consumption and Trade Openness

2021 ◽  
Vol 13 (9) ◽  
pp. 5054
Author(s):  
Özgür Bayram Soylu ◽  
Tomiwa Sunday Adebayo ◽  
Dervis Kirikkaleli
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Co2 Emissions ◽  
Trade Openness ◽  
Wavelet Coherence ◽  
Energy Usage ◽  
Causality Test ◽  
Gradual Shift ◽  
Long Run ◽  
Multiple Wavelet Coherence

It is widely accepted that CO2 emissions are the primary cause of climate change and environmental destruction. China, the world’s biggest carbon emitter, is the subject of this research. Utilizing the wavelet tools (wavelet correlation, wavelet coherence, multiple wavelet coherence, and partial wavelet coherence), the present study intends to capture the time-frequency dependence between CO2 emissions and renewable energy, economic growth, trade openness, and energy usage in China between 1965 and 2019. The advantage of the wavelet tools is that they can differentiate between short, medium, and long-run dynamics over the period of study. Furthermore, the study utilized the gradual shift causality test to capture the causal interconnection between CO2 emissions and the regressors. The findings from Bayer and Hanck showed a long-run relationship among the variables of interest. Furthermore, the findings from the wavelet coherence test revealed a positive relationship between CO2 emissions and economic growth and energy usage at all frequencies. Although there is a weak negative relationship between renewable energy and CO2 emissions in the short run, there is no significant co-movement between CO2 emissions and trade openness. The outcomes of the partial and multiple wavelet coherence also give credence to the outcomes of the wavelet coherence test. Lastly, the gradual shift causality test revealed a one-way causality from energy usage and economic growth to CO2 emissions. Based on the findings, suitable policy suggestions were proposed.

scholarly journals Sustainability of Energy-Induced Growth Nexus in Brazil: Do Carbon Emissions and Urbanization Matter?

2021 ◽  
Vol 13 (8) ◽  
pp. 4371 ◽  
Author(s):  
Tomiwa Sunday Adebayo ◽  
Abraham Ayobamiji Awosusi ◽  
Jamiu Adetola Odugbesan ◽  
Gbenga Daniel Akinsola ◽  
Wing-Keung Wong ◽  
...  
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Co2 Emissions ◽  
Economic Performance ◽  
Trade Openness ◽  
Least Square ◽  
Wavelet Coherence ◽  
Gradual Shift ◽  
Long Run ◽  
Causality Tests

This study assesses the relationship between economic performance and environmental sustainability by taking into account the role of energy consumption, urbanization, and trade openness in Brazil by using data spanning from 1965 to 2019. The study is distinct from previously documented studies in literature in terms of scope for Brazil, where few entries have been recorded. The major objectives are to address the questions: (a) Is there a long-run connection between the variables under consideration? (b) Can CO2 emissions, trade openness, and energy consumption predict economic performance of Brazil? (c) What is the connection between economic growth and the independent variables at different frequencies and time-period? Furthermore, the study utilized dynamic ordinary least square (DOLS), fully modified ordinary least square (FMOLS), Maki Cointegration, and autoregressive distributed lag (ARDL) to capture the long-run association between the variables of interest. Also, we used the Wavelet coherence and Gradual-shift causality tests to capture the causal linkage between economic growth and the regressors. The advantage of the wavelet coherence test is that it can capture causal linkage between series at different frequencies and periods. The outcome of both Maki cointegration and ARDL bounds testing to cointegration affirms the presence of long-run interaction among the parameters of interest. Furthermore, the outcomes of the DOLS and FMOLS revealed that energy consumption, CO2 emissions, and urbanization exert positive impacts on economic growth in Brazil while there is no significant connection between trade openness and economic growth. Moreover, Gradual shift causality test outcomes disclosed that urbanization, trade openness, CO2 emissions and energy usage can predict the economic performance of Brazil. The outcomes of the wavelet coherence test give credence to the FMOLS, DOLS, and Gradual shift causality tests.

scholarly journals An empirical analysis of the energy consumption – real GDP nexus for Zimbabwe

2013 ◽  
Vol 10 (3) ◽  
pp. 426-433
Author(s):  
Kunofiwa Tsaurai
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Time Series Data ◽  
Scale Up ◽  
Series Data ◽  
Causality Test ◽  
Long Run ◽  
Causality Relationship ◽  
Capital Development ◽  
Growth Hypothesis

This study looked into causality relationship between energy consumption and economic growth in Zimbabwe using time series data spanning from 1980 to 2011. Four views explaining the causality relationship between energy consumption and economic growth include the growth hypothesis, conservation hypothesis, feedback hypothesis and the neutrality hypothesis. Whilst the growth hypothesis argues that energy consumption promotes economic growth, conservation hypothesis says that it is in fact economic growth that drives energy consumption. The feedback hypothesis argues that both energy consumption and economic growth promote each other whilst according to the neutrality hypothesis, no causality relationship exist between the two variables either in the short or long run. Using the bi-variate causality test framework, this study failed to establish any direct causality relationship between energy consumption and economic growth. However, the results imply the existence of an indirect bi-directional causality relationship between the two variables. The study therefore recommends Zimbabwe authorities not only to scale up investment into energy generation capacity improvement infrastructure but also address indirect factors like employment, human capital development, financial market development, and government consumption, among others in order to boost sustainable economic growth.

scholarly journals DETERMINING THE ROLE OF ENERGY CONSUMPTION AND AIR POLLUTION ON PAKISTAN’S ECONOMIC GROWTH: APPLICATION OF AUTOREGRESSIVE DISTRIBUTIVE LAG MODEL (ARDL)

2020 ◽  
Vol 7 (3) ◽  
pp. 189-204
Author(s):  
Baseerat Sultana ◽  
Abdul Mansoor
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Electric Power ◽  
Co2 Emission ◽  
Nuclear Energy ◽  
Time Series Data ◽  
High Mass ◽  
Series Data ◽  
Long Run ◽  
The Impact

Abstract: The goals of the study are to observe the impact of energy consumption, CO2 emission on Pakistan’s economic growth by using and annual time series data from 1980 to 2016.  The Auto regressive lag distributive (ARDL) model is applied to find out the correlation between the variables. The short run elasticity shows that CO2 emission, fossil fuel and hydro energy consumption decreases Pakistan’s economic growth, while nuclear energy consumption and electric power consumption substantially increases GDP per capita of the country. In the long run, nuclear energy consumption and electric power generation support country’s economic growth, which need more friendly environmental policies to reduce high mass carbon emissions in a country.  

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