scholarly journals R Effects of Energy Consumption on GDP: New Evidence of 24 Countries on Their Natural Resources and Production of Electricity

Ekonomika ◽  
2020 ◽  
Vol 99 (1) ◽  
pp. 26-49
Author(s):  
Rabnawaz Khan ◽  
YuSheng Kong
Keyword(s):  
Energy Consumption ◽  
Co2 Emissions ◽  
Granger Causality Test ◽  
Causality Test ◽  
Fossil Energy ◽  
Economic Output ◽  
The Usa ◽  
Short Run ◽  
Per Capita ◽  
New Evidence

Because of rapid economic expansion, China, the USA, and India have become the largest energy producers and sources of CO2 emissions in the world. They burned over 45% of global fuels in 2016. Meanwhile, the developing strategies of 24 polluted states to decrease fossil energy consumption without additional economic output. This paper explores the effect of world top polluted countries’ CO2 emission, their GDP and production of electricity by potential indicators and identifies the basic factors that contribute to changes in an environment where petroleum, natural gas, coal, nuclear, biomass, and other renewable energy and hydroelectric sources are examined with GDP per capita. We estimate our data for the period from 1968 to 2017 and use the GLM model. The results show that more production of electricity is causing abnormal CO2 emissions. The Granger causality test shows that there is a unidirectional relationship between energy consumption and economic advancement. Also, there is a short-run bidirectional causality that exists among the energy indicators. We find a unilateral causality between energy consumption and economic growth. Therefore, the consumption of energy might be conductive of 24 (polluted) countries and better economic development; the consumption of energy may be failsafe and guaranteed, while we should limit the resources of countries.

Does educational progress impact energy consumption? A causality test for India

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Soumen Rej ◽  
Barnali Nag
Keyword(s):  
Energy Consumption ◽  
Energy Supply ◽  
Causality Test ◽  
Content Type ◽  
Vector Error Correction ◽  
Educational Advancement ◽  
Long Run ◽  
Short Run ◽  
Development Goals ◽  
Per Capita

Purpose Both energy and education have been positioned as priority objectives under the itinerary of UN development goals. Hence, it is necessary to address the implicit inter relationship between these two development goals in the context of developing nations such as India who are trying to grow in both per capita income and socio economic factors whilst struggling with the challenges of a severe energy supply constrained economy. Design/methodology/approach In the present study, the causal relationship between energy consumption per capita and education index (EI) as a proxy of educational advancement is investigated for India for 1990–2016 using the Johansen-Juselius cointegration test and vector error correction model. Findings The empirical results infer although energy consumption per capita and EI lack short run causality in either direction, existence of unidirectional long run causality from EI to per capita energy consumption is found for India. Further, it is observed that energy consumption per capita takes around four years to respond to unit shock in EI. Research limitations/implications The findings from this study imply that with the advancement of education, a rise in per capita energy consumption requirement can be foreseen on the demand side, and hence, India’s energy policy needs to emphasize further its sustainable energy supply goals to meet this additional demand coming from a population with better education facilities. Originality/value The authors hereby confirm that this manuscript is entirely their own original study and not submitted elsewhere.

The relationship between energy consumption and gross domestic product in Hong Kong (1992–2015): Evidence from sectoral analysis and implications on future energy policy

2019 ◽  
Vol 31 (2) ◽  
pp. 215-236
Author(s):  
Ruixiaoxiao Zhang ◽  
Geoffrey QP Shen ◽  
Meng Ni ◽  
Johnny Wong
Keyword(s):  
Time Series ◽  
Energy Consumption ◽  
Gross Domestic Product ◽  
Causal Relationship ◽  
Granger Causality ◽  
Value Added ◽  
Granger Causality Test ◽  
Domestic Product ◽  
Causality Test ◽  
Per Capita

The causal relationship between energy consumption and gross domestic product in Hong Kong from 1992 to 2015 is investigated in this study. Different from the previous studies focusing on the causal relationship between total energy consumption and total gross domestic product per capita, this study further investigates the causal relationship from sectoral perspective, including residential, commercial, industrial and transportation sectors. For each sector, the time series data of sectoral energy consumption and sectoral per capita value added are collected. To conduct the Granger causality test, the unit root test is first applied to analyse the stationarity of time series. The cointegration test is then employed to examine whether causal relationship exists in long-term. Finally, based on the aforementioned tests, both vector error correction model and vector autoregression model can be selected to determine the Granger causality between time series. It is interesting to find that the sectoral energy consumption and corresponding sectoral per capita value-added exhibit quite different causal relationships. For both residential sector and commercial sectors, a unidirectional causal relationship is found running from the sectoral per capita value added to sectoral energy consumption. Oppositely, for industrial sector and transportation sector, a unidirectional causal relationship is found running from sectoral energy consumption to sectoral per capita value added. Regarding the Granger causality test results, the indicative suggestions on energy conservation policies, energy efficiency policies and greenhouse gas emission reduction policies are discussed based on the background of Hong Kong’s economic structure and fuel types.

scholarly journals Does Chinese FDI, Climate Change, and CO2 Emissions Stimulate Agricultural Productivity? An Empirical Evidence from Pakistan

2020 ◽  
Vol 12 (18) ◽  
pp. 7485 ◽  
Author(s):  
Shakeel Ahmad ◽  
Muhammad Tariq ◽  
Touseef Hussain ◽  
Qasir Abbas ◽  
Hamidullah Elham ◽  
...  
Keyword(s):  
Climate Change ◽  
Co2 Emissions ◽  
Agricultural Production ◽  
Direct Investment ◽  
Granger Causality Test ◽  
Test Results ◽  
Causality Test ◽  
Agriculture Sector ◽  
Long Run ◽  
Short Run

Pakistan’s agricultural sector growth is dwindling from the last several years due to insufficient foreign direct investment (FDI) and a drastic climate change-induced raise in temperature, which are severely affecting agricultural production. The FDI has paramount importance for the economy of developing countries as well as the improvement of agricultural production. Based on the time series data from 1984 to 2017, this paper aims to highlight the present situation of the agriculture sector of Pakistan and empirically analyze the short-run and long-run impact of Chinese foreign direct investment (CFDI), climate change, and CO2 emissions on agricultural productivity and causality among the variables. The Autoregressive Distributed Lag Model (ARDL) model and Granger Causality test were employed to find out the long-run, short-run, and causal relationships among the variables of interest. Furthermore, we have employed the Error Correction Model (ECM) to know the convergence of the equilibrium path. The bound test results verified the existence of a long-run association, and the empirical findings confirmed that Chinese FDI has a significant and positive impact, while climate change and CO2 emissions has negative impact on the agricultural growth of Pakistan both in the short-run and long-run. Granger Causality test results revealed that variables of interest exhibit bi-directional and uni-directional causality. The sector-wise flow of FDI reveals that the agriculture sector of Pakistan has comparatively received a less amount of FDI than other sectors of the economy. Based on the findings, it was suggested to the Government of Pakistan and policymakers to induce more FDI in the agriculture sector. Such policies would be helpful for the progress of the agriculture sector as well as for the economic growth of Pakistan.

scholarly journals Financial Market Development and Pollution Nexus in Saudi Arabia: Asymmetrical Analysis

Energies ◽  
2018 ◽  
Vol 11 (12) ◽  
pp. 3462 ◽  
Author(s):  
Haider Mahmood ◽  
Abdullatif Alrasheed ◽  
Maham Furqan
Keyword(s):  
Saudi Arabia ◽  
Energy Consumption ◽  
Co2 Emissions ◽  
Financial Market ◽  
Market Development ◽  
Kuznets Curve ◽  
Long Run ◽  
Short Run ◽  
Per Capita ◽  
Financial Market Development

The study is aimed to scrutinize the presence of Environmental Kuznets Curve (EKC) hypothesis in Saudi Arabia by analyzing a period of 1971–2014. Asymmetrical impacts of Financial Market Development (FMD) and energy consumption per capita have also been tested on CO2 emissions per capita. The estimates buoyed the long and short-run relationships in the hypothesized model, and EKC is found to be true in terms of the relationship between income and pollution. Asymmetrical effects of FMD in the long run and asymmetrical effects of energy consumption per capita in the long and short run are presented on the CO2 emissions per capita. A decreasing FMD is found responsible for environmental degradation, and decreasing energy consumption per capita is found helpful in controlling CO2 emissions. The tested effect of the financial crisis is found insignificant on CO2 emissions.

CO2emissions and militarization in G7 countries: panel cointegration and trivariate causality approaches

2017 ◽  
Vol 22 (6) ◽  
pp. 771-791 ◽  
Author(s):  
Melike Bildirici
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Panel Cointegration ◽  
Energy Policies ◽  
G7 Countries ◽  
Causality Test ◽  
Per Capita Gdp ◽  
Distributed Lag ◽  
Short Run ◽  
Per Capita

AbstractThis paper aims to test the relation among militarization, CO2emissions, economic growth and energy consumption in G7 countries from 1985 to 2015 via panel methods. Long- and short-run coefficients and the causal relationship between the variables are important for G7 countries' energy policies and strategy. Cointegration among CO2emissions, militarization, energy consumption and economic growth was determined by using panel Johansen and panel autoregressive distributed lag (PARDL) methods. Further, the panel trivariate causality test was applied and unidirectional causalities from militarization to CO2emissions and from energy consumption to CO2emissions were found. The evidence of bidirectional causality between per capita GDP and militarization, between per capita GDP and energy consumption, and between energy consumption and militarization was determined. The paper recommends that environmental and energy policies must recognize the differences in the relation between militarization, energy consumption and economic growth in order to maintain sustainable economic growth in the G7 countries.

scholarly journals Impact of Trade and Financial Globalization on Renewable Energy in EU Transition Economies: A Bootstrap Panel Granger Causality Test

Energies ◽  
2020 ◽  
Vol 14 (1) ◽  
pp. 19
Author(s):  
Yilmaz Bayar ◽  
Mahmut Unsal Sasmaz ◽  
Mehmet Hilmi Ozkaya
Keyword(s):  
Renewable Energy ◽  
Co2 Emissions ◽  
Granger Causality Test ◽  
Financial Globalization ◽  
Causality Analysis ◽  
Causality Test ◽  
Real Gdp ◽  
Panel Granger Causality ◽  
Real Gdp Per Capita ◽  
Per Capita

The globalized world has experienced significant environmental degradation together with raising global production and population. In this context, the employment of renewable energy use has become crucial for a sustainable environment and development. In the research, the mutual causality among renewable energy, trade and financial globalization, real GDP per capita, and CO2 emissions in EU transition economies experiencing the integration with global economy was explored through bootstrap panel Granger causality test for the period of 1995–2015. The causality analysis revealed a unilateral causality from trade globalization to renewable energy in Estonia, Latvia, and Slovenia, and from renewable energy to trade globalization in Croatia and Lithuania. However, no significant causality between financial globalization and renewable energy was revealed. On the other side, a unilateral causality from CO2 emissions to renewable energy in Lithuania and Slovenia, and from renewable energy to CO2 emissions in Czechia, Hungary, and Latvia and a reciprocal causality between renewable energy to CO2 emissions in Romania and Slovakia and a unilateral causality from real GDP per capita to renewable energy in Czechia, Romania, and Slovenia was discovered in the causality analysis.

scholarly journals Urbanisasi, Konsumsi Energi, dan Emisi CO2 : Adakah Perbedaan Korelasinya di Kawasan Barat Indonesia (KBI) dan Kawasan Timur Indonesia (KTI)?

2019 ◽  
Vol 7 (3) ◽  
pp. 166-180
Author(s):  
Anastasia Widya Kristiani ◽  
Widyono Soetjipto
Keyword(s):  
Energy Consumption ◽  
Co2 Emissions ◽  
Negative Correlation ◽  
Estimation Method ◽  
Rapid Urbanization ◽  
Fossil Energy ◽  
Urban And Regional Planning ◽  
Panel Data Estimation ◽  
Stage Of Development ◽  
Per Capita

Indonesia’s rapid urbanization has become one of the indicators of development that also continues to increase. It is undeniable, improving stage of development is often have an impact on environmental degradation such as excessive fossil energy consumption and CO2 emissions. However, not all regions in Indonesia are at the same stage of development. There are high economic and socio-demographic inequalities and differences between western Indonesia (KBI) and eastern Indonesia (KTI). This study aims to provide empirical evidence and analyze impact of urbanization on energy consumption and CO2 emissions in the country that has different stage of developments across the region. Taking regional heterogeneity in Indonesia, panel data estimation method was applied at the provincial level during the 2011-2015 period. The results of the study show that urbanization in KBI and KTI has different effects on per capita fossil energy consumption. Urbanization in KBI has a positive relationship to per capita energy consumption, whereas urbanization in the KTI has a negative correlation. Urbanization in KBI has a negative correlation with CO2 emissions. However, there was no difference effect of urbanization on CO2 emissions in both of region because the estimation results in KTI showed values that were not statistically significant. These findings not only help advance the existing literature, but also add insight to policy makers in the urban and regional planning.

scholarly journals Effects of Energy Consumption of Top 24 Polluted Countries on their GDP: New Evidence Based on Natural Resources and Production of Electricity

2019 ◽  
Author(s):  
Rabnawaz Khan ◽  
YuSheng Kong
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Probit Analysis ◽  
Evidence Based ◽  
Economic Output ◽  
Rapid Economic Growth ◽  
Short Run ◽  
Energy Indicators ◽  
Using Data ◽  
New Evidence

Results of rapid economic growth, China, USA, and India have become the largest energy stealer and the greatest emitter of CO2 in the world and burn over 45% of global fuels in 2016. Meanwhile, the developing strategies of 24 polluted countries to decrease the energy consumption without additional economic output. This paper is exploring the effect of world top polluted countries C02 emission and their GDP and the production of electricity by energy indicators. The GLM model is not predict logistic and probit analysis directly; instead, it is mainly used for instinct to response of CO2 emission, using data for the period 1968-2017. The huge production of electricity will cause of abnormal CO2; this study offers true indication of exploring consumption of energy issues from the perspective of Granger casual and a positive unidirectional causality is detected between energy consumption to economic growth, while short-run bidirectional casualty exists among energy indicators.

scholarly journals A Causal Nexus of Energy Consumption, Private Investment, Economic Growth and Environmental Degradation: Evidence from Pakistan

2020 ◽  
Vol 6 (2) ◽  
pp. 367-376
Author(s):  
Shabana Parveen ◽  
Hazrat Ali ◽  
Habib Elahi Sahibzada ◽  
Sohail Farooq
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Granger Causality ◽  
Co2 Emissions ◽  
Environmental Degradation ◽  
Private Investment ◽  
Granger Causality Test ◽  
Var Model ◽  
Causality Test ◽  
Policy Makers

The importance of private investment in the growth process of a country cannot be denied, however, its relationship with environmental degradation has not got much attention from researchers yet. The present study is an attempt to divert the attention of researchers and policy makers to the association with private investment and environmental degradation.  The time series data was used from 1975 to 2017. The data was taken from WDI. To analyze the causal link among environmental degradation, private investment, energy consumption and economic growth, Vector Autoregressive (VAR) model is used. Granger causality test is employed for knowing the course of causality in the variables. The results of the VAR model suggest that if an innovation of one standard deviation occurs from outside, it takes about 12 years for CO2 emissions, 9 years for private investment, 10 years for energy consumption and about 8years for economic growth to adjust. Moreover, the results show that most of the variation in all variables is explained by their own. Granger causality test identifies four unilateral causalities in the variables running from CO2 emissions to economic growth while the consumption of energy to CO2 emissions, energy consumption to economic growth while  from economic growth to private investment. The study recommends policy makers to make environmental friendly policies regarding consumption of energy, private investment and also economic growth.

scholarly journals The Relationship between Financial Development and Energy Consumption in South Africa

Economies ◽  
2021 ◽  
Vol 9 (4) ◽  
pp. 158
Author(s):  
Palesa Milliscent Lefatsa ◽  
Kin Sibanda ◽  
Rufaro Garidzirai
Keyword(s):  
South Africa ◽  
Energy Consumption ◽  
Private Sector ◽  
Granger Causality ◽  
Financial Development ◽  
Granger Causality Test ◽  
Causality Test ◽  
Long Run ◽  
Short Run ◽  
The Relationship

This paper examines the nexus between financial development and energy consumption in South Africa. To determine the long run and short run relationship between financial development and energy consumption in South Africa, the paper uses an Auto Regressive Distributed Lag bounds test (ARDL) and Granger causality test to establish the type of correlation between 1980 and 2018. ARDL bounds testing method offers concrete long-run estimates and t-statistics as it is flexible whether the adopted variables are I(0) or I(1).The study used per capita (kilogram, kg of oil equivalent) to measure total energy consumption, domestic credit to the private sector (percentage of gross domestic product, GDP) to measure financial development, real GDP growth (to capture economic growth), industrial value added (percentage of GDP) to measure industrialization, and urban population (percentage of total population) to capture urbanization. Results from ARDL showed that the relationship between financial development and energy consumption is positive in nature both in short-run and long-run. Granger causality test results revealed unidirectional causality from financial development to energy consumption. Policymakers need to formulate policy reforms that channels more credit to private sector development in order to bolster more energy use in South Africa. There ought to be proper balance between financial development and energy consumption to avoid electricity crisis.

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