Economic Growth And Carbon Emissions In South Africa: An Empirical Investigation

In this paper we examine the causal relationship between CO2 emissions and economic growth in South Africa - using the newly developed ARDL-Bounds testing approach. We incorporate energy consumption in a bivariate causality setting between CO2 emissions and economic growth, thereby creating a simple trivariate model. Our empirical results show that there is a distinct unidirectional causal flow from economic growth to carbon emissions in South Africa. We also find that energy consumption Granger-causes both carbon emissions and economic growth. We recommend that energy conservation policies, as well as appropriate forms of renewable energy, should be explored in South Africa in order to enable the country to reduce its carbon emission footprint without necessarily sacrificing its output growth. The results apply irrespective of whether the causality is estimated in the short or in the long run.

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Economic Growth And Carbon Emissions In South Africa: An Empirical Investigation

International Business & Economics Research Journal (IBER) ◽

10.19030/iber.v10i7.4668 ◽

2011 ◽

Vol 10 (7) ◽

pp. 75 ◽

Cited By ~ 2

Author(s):

Nicholas M. Odhiambo

Keyword(s):

Economic Growth ◽

South Africa ◽

Energy Consumption ◽

Co2 Emissions ◽

Carbon Emissions ◽

Empirical Investigation ◽

Output Growth ◽

Bounds Testing ◽

Conservation Policies ◽

Long Run

In this paper we examine the causal relationship between CO2 emissions and economic growth in South Africa - using the newly developed ARDL-Bounds testing approach. We incorporate energy consumption in a bivariate causality setting between CO2 emissions and economic growth, thereby creating a simple trivariate model. Our empirical results show that there is a distinct unidirectional causal flow from economic growth to carbon emissions in South Africa. We also find that energy consumption Granger-causes both carbon emissions and economic growth. We recommend that energy conservation policies, as well as appropriate forms of renewable energy, should be explored in South Africa in order to enable the country to reduce its carbon emission footprint without necessarily sacrificing its output growth. The results apply irrespective of whether the causality is estimated in the short or in the long run.

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

Energies ◽

10.3390/en14113165 ◽

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.

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

Global Business Review ◽

10.1177/0972150920916653 ◽

2020 ◽

pp. 097215092091665 ◽

Cited By ~ 3

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.

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Dynamic linkages between renewable energy, carbon emissions and economic growth through nonlinear ARDL approach: Evidence from Iran

PLoS ONE ◽

10.1371/journal.pone.0253464 ◽

2021 ◽

Vol 16 (7) ◽

pp. e0253464

Author(s):

M. S. Karimi ◽

S. Ahmad ◽

H. Karamelikli ◽

D. T. Dinç ◽

Y. A. Khan ◽

...

Keyword(s):

Economic Growth ◽

Renewable Energy ◽

Energy Consumption ◽

Carbon Emissions ◽

Gdp Per Capita ◽

Bounds Testing ◽

Renewable Energy Consumption ◽

Economic Implications ◽

Long Run ◽

Per Capita

This study examines the relationship between economic growth, renewable energy consumption, and carbon emissions in Iran between 1975–2017, and the bounds testing approach to cointegration and the asymmetric method was used in this study. The results reveal that in the long run increase in renewable energy consumption and CO2 emissions causes an increase in real GDP per capita. Meanwhile, the decrease in renewable energy has the same effect, but GDP per capita reacts more strongly to the rise in renewable energy than the decline. Besides, in the long run, a reduction of CO2 emissions has an insignificant impact on GDP per capita. Furthermore, the results from asymmetric tests suggest that reducing CO2 emissions and renewable energy consumption do not have an essential role in decreasing growth in the short run. In contrast, an increase in renewable energy consumption and CO2 emissions do contribute to boosting the growth. These results may be attributable to the less renewable energy in the energy portfolio of Iran. Additionally, the coefficients on capital and labor are statistically significant, and we discuss the economic implications of the results and propose specific policy recommendations.

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

10.47363/jesmr/2020(1)110 ◽

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

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Energy consumption and financial development in South Africa

Ekonomski pregled ◽

10.32910/ep.70.1.3 ◽

2019 ◽

Vol 70 (1) ◽

pp. 41-61

Author(s):

Nicholas M. Odhiambo

Keyword(s):

Economic Growth ◽

South Africa ◽

Energy Consumption ◽

Interest Rates ◽

Financial Development ◽

Financial Institutions ◽

Bank Lending ◽

Bounds Testing ◽

Causality Test ◽

Long Run

This paper examines the dynamic relationship between energy consumption and financial development in South Africa during the period 1980-2013. In order to address the omission of variable bias, the study has included economic growth as an intermittent variable between financial development and energy consumption. Unlike some previous studies, this study uses three proxies for financial development: i) domestic credit to the private sector as a percentage of GDP as a proxy for financial institutions’ depth; ii) bank credit to bank deposits as a proxy for financial institutions’ stability; and iii) bank lending-deposit spread as a proxy for financial institutions’ efficiency. Using the ARDL bounds testing approach to cointegration and Granger-causality test, the obtained results show that there is a distinct long-run unidirectional causal flow from financial development to energy consumption in South Africa. This applies irrespective of which proxy has been used to measure the level of financial development. The study also finds that there is a long-run unidirectional causality from economic growth to energy consumption, and a unidirectional causality from economic growth to financial development when bank lending-deposit interest rates spread is used as a proxy for financial development. This, therefore, implies that energy consumption in South Africa is largely driven by the growth-led financial development in the long run.

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Energy, Emissions and the Economy: Empirical Analysis from Pakistan

The Pakistan Development Review ◽

10.30541/v53i4iipp.383-401 ◽

2014 ◽

Vol 53 (4II) ◽

pp. 383-401 ◽

Cited By ~ 2

Author(s):

Muhammad Tariq Mahmood ◽

Sadaf Shahab

Keyword(s):

Economic Growth ◽

Energy Consumption ◽

Co2 Emissions ◽

Fossil Fuels ◽

Kuznets Curve ◽

Bounds Testing ◽

Long Run ◽

Negative Impacts ◽

Energy Emissions ◽

Carbon Dioxide Co2

It is now an established fact that the most important environmental problem of our era is global warming.1 The rising quantity of worldwide carbon dioxide (CO2) emissions seems to be escalating this problem. As the emissions generally result from consumption of fossil fuels, decreasing energy spending seems to be the direct way of handling the emissions problem. However, because of the possible negative impacts on economic growth, cutting the energy utilisation is likely to be the “less preferred road”. Moreover, if the Environmental Kuznets Curve (EKC) hypothesis applies to the emissions and income link, economic growth by itself may become a solution to the problem of environmental degradation [Rothman and de Bruyn (1998)]. Coondoo and Dinda (2002), however, argue that both developing and developed economies must sacrifice economic growth. Still, countries may opt for different policies to fight global environmental problems, mainly depending on the type of relationship between CO2 emissions, income, and energy consumption over the long run [Soytas and Sari (2006)]. Hence, the emissions-energy-income nexus needs to be studied carefully and in detail for every economy, but more so for the developing countries. In this paper, we investigate the relationship between energy consumption, CO2 emissions and the economy in Pakistan from a long run perspective, in a multivariate framework controlling for gross fixed capital, labour and exports by employing ARDL bounds testing approach.

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Research publications and economic growth in South Africa: an empirical investigation

International Journal of Social Economics ◽

10.1108/ijse-05-2014-0103 ◽

2016 ◽

Vol 43 (7) ◽

pp. 662-675

Author(s):

Nicholas M Odhiambo ◽

Lydia Ntenga

Keyword(s):

Economic Growth ◽

South Africa ◽

Causal Relationship ◽

Series Data ◽

Bounds Testing ◽

Content Type ◽

Research Publications ◽

Long Run ◽

Ardl Bounds Testing ◽

Short Run

Purpose – The purpose of this paper is to examine the causal relationship between research publications and economic growth – using time-series data from South Africa. The paper attempts to answer two critical questions: is there a long-run relationship between research publications and economic growth in South Africa? Do research publications from South African researchers Granger-cause economic growth? Design/methodology/approach – Unlike some of the previous studies, the current paper uses a trivariate ECM-based Granger-causality model to examine this linkage. Specifically, the study incorporates education as an intermittent variable between research and economic growth. In addition, the paper uses the recently developed autoregressive distributed lag (ARDL)-bounds testing procedure, which has numerous advantages, especially when the sample size is small. Findings – The results of this study show that there is a long-run relationship between research publications and economic growth in South Africa. The results also show that there is a distinct causal flow from research publications to economic growth in South Africa. This applies both in the short-run and in the long-run. Other results also show that: there is a short-run bidirectional causality between research publications and education; and there is a short-run bi-directional causality between education and economic growth, but a long-run unidirectional causal flow from education to economic growth. Practical implications – The findings of this paper underscore the crucial role that research plays in economic growth and development. Overall, the findings of this study show that research in South Africa is pro-growth. This implies that the recent significant increase in government expenditure on research and innovation, which is aimed at increasing the country’s scientific research outputs, is likely to pay off. Originality/value – To the best of the authors’ knowledge, this paper is the first of its kind to examine in detail the dynamic causal relationship between research outputs and economic growth in South Africa – using the recently developed ARDL-bounds testing approach within a trivariate setting.

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Re-Visting the Electricity-Growth Nexus in South Africa

Studies in Business and Economics ◽

10.1515/sbe-2016-0009 ◽

2016 ◽

Vol 11 (1) ◽

pp. 97-111 ◽

Cited By ~ 2

Author(s):

Andrew Phiri ◽

Bothwell Nyoni

Keyword(s):

Economic Growth ◽

South Africa ◽

South African ◽

Empirical Investigation ◽

Research Study ◽

Electricity Consumption ◽

Domestic Investment ◽

Long Run ◽

Trivariate Analysis

AbstractThis research study contributes to the ever-expanding literature by examining multivariate cointegration and causality relationships between electricity consumption, economic growth and other growth determinants for quarterly South African data collected between 1994/Q1 – 2014/Q4. The motivation behind this current research case study becomes apparent when taking into consideration that no previous studies have gone further than bivariate and trivariate analysis in investigating the electricity-growth nexus in South Africa. In conducting our empirical investigation, our obtained empirical results are two-fold in nature. Firstly, we find significant multivariate long-run cointegration relationships between economic growth, electricity consumption and other growth determinants. Secondly, our empirical analysis offers support in favour of the neutrality hypothesis, that is, the notion of no causal effects existing between electricity consumption and economic growth in the long-run. However, we find that exports directly cause electricity consumption whereas economic growth, domestic investment and employment levels causally flow to exports.

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

International Journal of Service Science Management Engineering and Technology ◽

10.4018/ijssmet.2017040107 ◽

2017 ◽

Vol 8 (2) ◽

pp. 79-90 ◽

Cited By ~ 2

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.

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