scholarly journals CO2 Emission, Energy Consumption and Economic Development in Malaysia

2015 ◽  
Vol 6 (1) ◽  
pp. 674-678
Author(s):  
Hamizah bt Muhyidin ◽  
Md. Khaled Saifullah ◽  
Yap Su Fei
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Total Energy ◽  
Granger Causality ◽  
Industrial Production ◽  
Co2 Emission ◽  
Total Energy Consumption ◽  
Production Index ◽  
Industrial Production Index ◽  
Long Run

Environmental awareness and its relation to the development of economy have garnered increased attention in recent years. This study analyzes the long-run relationship between environment degradation, economic growth, total energy consumption and industrial production index growth in Malaysia from year 1970 to 2012. The time series data are estimated using Johansen and Julies Cointegration test and VECM Granger causality test. The empirical analysis suggests a long-run cointegration relationship between all series. Granger causality analysis indicates strong evidence of uni-directional Granger causality running from economic growth and industrial production index growth to total energy consumption in the long-run. Also, the result shows evidence of a bi-directional Granger causality between total energy consumption and CO2 emission. This situation suggests that a pollution abatement policies and higher investment to control for CO2 emission will not jeopardize the economic sustainability and industry output in the long run. This study suggests that previous policies should be complimented with increasing the efficiency of energy use by employing a fuel balancing strategies and promoting the use of renewable energy resources like bio-fuel, solar energy and wind.

ANALYSIS OF THE RELATIONSHIP BETWEEN ECONOMIC GROWTH, INFLATION AND UNEMPLOYMENT IN TURKEY WITH THE ARDL BOUNDS TESTING APPROACH

2021 ◽  
Vol 6 (15) ◽  
pp. 299-312
Author(s):  
Özlem KARADAĞ AK
Keyword(s):  
Economic Growth ◽  
Industrial Production ◽  
Consumer Price Index ◽  
Bounds Testing ◽  
Short Term ◽  
Production Index ◽  
Distributed Lag ◽  
Distributed Lag Model ◽  
Industrial Production Index ◽  
Cointegration Relationship

The aim of this study is to examine the effects of economic growth and inflation on unemployment for the period 2005:1- 2020:9 in Turkey by using ARDL (Auto Regressive Distributed Lag) model. In the study, firstly unit root tests were carried out to determine whether economic growth (ind) and inflation (cpi) have long and short-term effects on unemployment (unemp). Then, the ARDL method was used to determine whether there is a long-term relationship between the series in the model where the unemployment rate is the dependent variable, the Industrial Production Index representing economic growth and the Consumer Price Index (CPI) representing inflation. Instead of GDP, the Industrial Production Index was preferred both to harmonize with the monthly data and to make a production-based analysis. As a result of the analysis, it was determined that there was a statistically significant cointegration relationship between the variables, and the short-term relationship was analyzed with the error correction model (ECM). As a result of the analysis, it has been determined that there is a cointegration relationship between unemployment, inflation rate and economic growth in Turkey. According to the results of the analysis, negative between unemployment and industrial production index; It is seen that there is a positive relationship between unemployment and inflation.

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.

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 Dynamics of Japan’s Industrial Production and CO2 Emissions: Causality, Long-Run Trend and Implication

2019 ◽  
Author(s):  
Wahid Murad ◽  
Md. Mahmudul Alam ◽  
Mazharul Islam
Keyword(s):  
Granger Causality ◽  
Co2 Emissions ◽  
Industrial Production ◽  
Co2 Emission ◽  
Industrial Sector ◽  
Industrial Emissions ◽  
Iron And Steel ◽  
Long Run ◽  
Equilibrium Level ◽  
Residential And Commercial Sectors

While CO2 emissions from the residential and commercial sectors of Japan have increased significantly since 1990 the country‟s industrial emissions make up the largest share of those emissions. The historical CO2 emission performance data also indicate that the iron and steel, chemical, paper and pulp and cement were the top four largest industrial emitters, and these top four emitting industries contributed nearly two-third of the industrial sector‟s total CO2 emission amount during 1990-2015. Evidently, any appropriate efforts or strategies guided by an empirical investigation like this are expected to help Japan‟s industrial emitters move toward a more tolerable and less polluted carbon footprint, which is well-matched with the country‟s commitment to Kyoto Protocol. This study is thus an effort to empirically investigate the causality and long-run trend/relationship between Japan‟s industrial production and CO2 emissions and to propose some corporate environmental strategies using the econometric techniques of Vector Error Correction (VEC) and Granger causality. It found that there exists no Granger causality between Japan‟s industrial production and CO2 emissions in any direction. But the VEC estimation reveals that an increase in Japan‟s industrial production by 1% is associated with a 0.08% increase in the country‟s CO2 emissions. It also reveals that any disequilibrium between Japan‟s industrial production and CO2 emissions could take about 0.7 quarters for half of the error to be corrected for. The adjustment rate for Japan‟s industrial production is found to be positive but quite slow at the rate of 0.08% per year. Since Japan‟s CO2 emissions vis-à-vis its industrial production is found to have reached above the long-run equilibrium level, its industrial sector is expected to encounter with stricter government regulations requiring reduction of CO2 emissions to the targeted/equilibrium level in the future.

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 Faktor Internal, Makroekonomi dan Pembiayaan Bermasalah Bank Syariah di Indonesia

2019 ◽  
Vol 9 (1) ◽  
pp. 41-56
Author(s):  
Yudhistira Ardana
Keyword(s):  
Exchange Rate ◽  
Industrial Production ◽  
Capital Adequacy ◽  
Production Index ◽  
Industrial Production Index ◽  
Long Run ◽  
Capital Adequacy Ratio ◽  
Internal And External Factors ◽  
Ratio Variables

Non Performing Financing is the most important issue for banks to survive. This study aims to analyze the determination of internal and external factors on Non Performing FInancing on Sharia Banking in Indonesia. This study uses Error Correction Model analysis techniques. The results show that in the short term the variables that have a significant effect on Non Performing Financing on Sharia Banking in Indonesia are inflation variables, while the Exchange Rate, Bank Indonesia Certificate of Wadi’ah, Industrial Production Index, Financing Deposite Ratio, and Capital Adequacy Ratio variables have no significant effect. In the long run the variables that are influential are Exchange Rate, Bank Indonesia Certificate of Wadi’ah, Financing Deposite Ratio, and Capital Adequacy Ratio, while Inflation and Industrial Production Index have no significant effect.

scholarly journals Energy consumption and economic growth in Ethiopia: A dynamic causal linkage

2018 ◽  
Vol 29 (8) ◽  
pp. 1393-1412 ◽  
Author(s):  
Sheilla Nyasha ◽  
Yvonne Gwenhure ◽  
Nicholas M Odhiambo
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Granger Causality ◽  
Trade Openness ◽  
Bounds Testing ◽  
Policy Makers ◽  
Long Run ◽  
Short Run ◽  
Variable Bias ◽  
Causality Model

In this study, we have explored the causal relationship between energy consumption and economic growth in Ethiopia, during the period from 1971 to 2013. We have employed a multivariate Granger-causality framework that incorporates financial development, investment and trade openness as intermittent variables – in an effort to address the omission-of-variable bias. Based on the newly developed ARDL bounds testing approach to co-integration and the error-correction model-based causality model, our results show that in Ethiopia, there is a distinct unidirectional Granger-causality from economic growth to energy consumption. These results apply, irrespective of whether the estimation is done in the short run or in the long run. We recommend that policy makers in Ethiopia should consider expanding their energy-mix options, in order to cope with the future demand arising from the real sector growth.

scholarly journals Petroleum Consumption and Financial Development in Malaysia

2016 ◽  
Author(s):  
Jen-Eem Chen ◽  
Yan-Ling Tan ◽  
Chin-Yu Lee ◽  
Lim-Thye Goh
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Granger Causality ◽  
Financial Development ◽  
Granger Causality Test ◽  
Financial Sector ◽  
Causality Test ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run

This paper aims to contribute to the existing literature by examining the dynamic relationship among petroleum consumption, financial development, economic growth and energy price. The sample of this study is based on the Malaysian annual data from 1980 to 2010. The model specification was examined in the Autoregressive Distributed Lag (ARDL) framework and the results revealed the existence of a long-run equilibrium. The findings indicated that financial development and economic growth cause a demand for energy to escalate in the long run. The Toda-Yamamoto (TYDL) non Granger-causality test provides evidence that there is unidirectional Granger-causality running from financial development and economic growth to energy consumption in the long run. This suggests that Malaysia is not an energy-dependent country. Hence, the government could implement energy conservation policies to reduce the waste of energy use. Given that development in the financial sector, and economic growth increase petroleum consumption in Malaysia, the policies pertaining to energy consumption should incorporate the development of the financial sector and economic growth of country.   Keywords: Petroleum consumption, financial development, non-renewable energy, Autoregressive Distributed Lag (ARDL), Toda-Yamamoto (TYDL) non Granger-causality test

scholarly journals The Causal Relationship between Energy Consumption, CO2 Emission, Population Growth and Economic Growth in South Africa: A Multivariate Investigation

2020 ◽  
pp. 1-5
Author(s):  
Erasmus L Owusu ◽  
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Energy Consumption ◽  
Population Growth ◽  
Causal Relationship ◽  
Co2 Emission ◽  
Electricity Consumption ◽  
Electricity Production ◽  
Bounds Testing ◽  
Long Run

The paper empirically examines the short and long-run causal relationship between energy consumption, CO2 emission, population growth and economic growth in South Africa. In so doing, the paper employs multivariate Granger-Causality within an ARDL-bounds testing approach to co-integration and unrestricted error correction model (UECM). The paper finds that energy usage and electricity consumption cause economic growth in South Africa but only in the short run. Additionally, the paper finds that, economic growth, population growth and energy consumption cause CO2 emission. Thus, policies should be targeted at the expansion of renewable and efficient electricity production in order to cope with the expected demand from expected population growth and from increasing demand from industries in order to maintain 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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