Solar Energy and CO2 Emissions: CCEMG Estimations for 26 Countries

Causality Test ◽

Fossil Energy ◽

Long Run ◽

Common Correlated Effects ◽

The Common ◽

Abstract The impact of renewable energy on environmental sustainability has become much more critical in the era of globalization. Therefore, this study examines the long-run relationships between solar energy consumption, coal energy consumption, financial globalization, economic growth, and CO2 emissions for 26 countries from 2000-2019. We preferred the common correlated effects mean group (CCEMG) method, which considers the cross-section dependence and slope homogeneity observed in the panel. According to CCEMG estimates, solar energy consumption has a negative and significant effect on the level of carbon emissions. Accordingly, a 1% increase in solar energy causes a 0.0106671% reduction in CO2 emissions. On the other hand, a 1% increase in fossil energy consumption causes a rise of 0.2403829% in CO2 emissions. Furthermore, the empirical results of the causality test showed a bidirectional causality between solar energy consumption and CO2 emissions. As a result, this study reveals the importance of solar energy in reducing CO2 emissions.

Solar Energy and CO2 Emissions: CCEMG Estimations for 26 Countries

10.21203/rs.3.rs-688369/v1 ◽

2021 ◽

Author(s):

Taner Güney ◽

Duygu Ince

Keyword(s):

Economic Growth ◽

Renewable Energy ◽

Energy Consumption ◽

Solar Energy ◽

Carbon Emissions ◽

Causality Test ◽

Cross Sectional ◽

Common Correlated Effects ◽

Abstract Although research establishes that the impact of renewable energy on environmental sustainability is critical in the era of globalization, the individual impact of renewable energy on the environment is often ignored. Therefore, this article examines the long-term relationships and direction of these relationships between solar energy consumption, coal energy consumption, financial globalization, economic growth, and environmental pollution for the period from 2000 to 2019 for 26 countries. The study used a range of econometric techniques that account for the cross-sectional dependence and slope homogeneity observed in the panel. The results of the common correlated effects mean group (CCEMG) estimator showed that solar energy consumption has a negative and significant effect on the level of carbon emissions. In addition, economic growth and coal energy increase carbon emissions. Finally, the results of the panel causality test confirmed the existence of various causal relationships among the variables.

FINANCIAL INTEGRATION, ENERGY CONSUMPTION AND ECONOMIC GROWTH IN VIETNAM

Annals of Financial Economics ◽

10.1142/s2010495220500104 ◽

2020 ◽

Vol 15 (03) ◽

pp. 2050010

Author(s):

NGUYEN MINH HA ◽

BUI HOANG NGOC ◽

MICHAEL MCALEER

Keyword(s):

Economic Growth ◽

Energy Consumption ◽

Financial Integration ◽

Positive Impact ◽

Vector Autoregressions ◽

Bounds Testing ◽

Causality Test ◽

Empirical Results ◽

Long Run ◽

The paper investigates the impact of financial integration and energy consumption on economic growth in Vietnam during the period 1986–2017. By applying the Autoregressive Distributed Lag ARDL) approach proposed by Pesaran et al. [Pesaran, MH, Y Shin and RJ Smith (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16(3), 289–326.] and the bounds cointegration test, the empirical results show the existence of long-term cointegration among all the variables, and that an increase in financial integration leads to an increase in economic growth in the long run. There is a positive impact of energy consumption on growth in both the short run and long run. The causality test of Toda and Yamamoto [Toda, HY and T Yamamoto (1995). Statistical inference in vector autoregressions with possibly integrated processes. Journal of Econometrics, 66(1–2), 225–250.] confirm that there is bi-directional causality between the pairs, financial integration and economic growth, and energy consumption and growth, which support the feedback hypothesis. However, there is only uni-directional causality from energy consumption to financial integration. The empirical results should be of major empirical importance for public policy decision-makers to plan sustainable development goals for Vietnam.

Economic growth, renewable and nonrenewable energy consumption nexus in India

International Journal of Energy Sector Management ◽

10.1108/ijesm-06-2019-0016 ◽

2020 ◽

Vol 14 (4) ◽

pp. 777-792 ◽

Cited By ~ 1

Author(s):

Shruti Shastri ◽

Geetilaxmi Mohapatra ◽

A.K. Giri

Keyword(s):

Economic Growth ◽

Renewable Energy ◽

Energy Consumption ◽

Renewable Energy Consumption ◽

Causality Test ◽

Content Type ◽

Long Run ◽

The Impact ◽

Asymmetric Causality ◽

Nonrenewable Energy

Purpose The purpose of this paper is to examine the nexus among economic growth, nonrenewable energy consumption and renewable energy consumption in India over the period 1971-2017. Design/methodology/approach This study uses nonlinear autoregressive distributed lags model and asymmetric causality test to explore nonlinearities in the dynamic interaction among the variables. Findings The findings indicate that the impact of nonrenewable energy consumption and renewable energy consumption on the economic growth is asymmetric in both long run and short run. In long run, a positive shock in nonrenewable energy consumption and renewable energy consumption exerts a positive impact on growth. However, the negative shocks in nonrenewable energy consumption produce larger negative effects on the growth. The results of nonlinear causality test indicate a unidirectional causality from nonrenewable energy consumption and renewable energy consumption to economic growth and thus support “growth hypothesis” in context of India. Practical implications The findings imply that policy measures to discourage nonrenewable energy consumption may produce deflationary effects on economic growth in India. Further, the findings demonstrate the potential role of renewable energy consumption in promoting economic growth. Originality/value To the best of the authors’ knowledge, this study is the first attempt to explore nonlinearities in the relationship between economic growth and the components of energy consumption in terms of renewable and nonrenewable energy consumption.

Probing Environmental Sustainability through Institutional Quality in South Asia

10.20944/preprints201808.0190.v1 ◽

2018 ◽

Author(s):

Ghulam Rasool Madni

Keyword(s):

Energy Consumption ◽

South Asia ◽

Co2 Emissions ◽

Co2 Emission ◽

Positive Impact ◽

Institutional Quality ◽

Kuznets Curve ◽

Long Run ◽

The impact of institutional quality on environmental sustainability is hardly discussed in literature in spite of its crucial role for economies. This article explores the relationship of institutional quality, energy consumption and real GDP on carbon dioxide (CO2) emissions for selected countries of South Asia covering the period of 1996-2015 by applying unit root tests and the starter panel technique. The findings of study highlight that institutional quality in these countries matter for emission of environmental pollutants. The estimated results reveal the significant positive impact of energy consumption on CO2 emission in long run and economic growth has a quadratic relationship with CO2 emission. However, the EKC (Environmental Kuznets Curve) hypothesis is proved by estimation of long run coefficients of real per capita income and its square value. The findings of study propose that not all countries have to sacrifice growth to reduce CO2 emissions as it can be reduced through energy conservation and improved institutional quality.

Investigating the Linkage between Economic Growth and Environmental Sustainability in India: Do Agriculture and Trade Openness Matter?

Sustainability ◽

10.3390/su13094753 ◽

2021 ◽

Vol 13 (9) ◽

pp. 4753

Author(s):

Ayhan Orhan ◽

Tomiwa Sunday Adebayo ◽

Sema Yılmaz Genç ◽

Dervis Kirikkaleli

Keyword(s):

Economic Growth ◽

Energy Consumption ◽

Co2 Emissions ◽

Trade Openness ◽

Sampling Period ◽

Wavelet Coherence ◽

Causality Test ◽

Gradual Shift ◽

Long Run

This paper assesses the linkage between CO2 emissions and economic growth while taking into account the role of energy consumption, agriculture, and trade openness in India. Using data covering the period between 1965 and 2019, the Bayer and Hanck cointegration and Gradual shift causality tests are applied to assess these economic indicators relationships’. Furthermore, we employed the wavelet coherence test. The advantage of the wavelet coherence test is that it differentiates between short-, medium-, and long-run dynamics over the entire sampling period. To the best of the authors’ understanding, the present paper is the first to apply wavelet analysis to investigate this relationship by incorporating agriculture as a determinant of environmental degradation. The empirical outcomes show that all variables appear to be highly correlated with CO2 emissions with the exemption of trade openness. This is further affirmed by the Gradual shift causality test, which shows that agriculture and energy consumption are crucial determinants of CO2 emissions in India. Accordingly, adequate policy measures are proposed based on these findings.

Do Public–Private Partnership Investment in Energy and Technological Innovation Matter for Environmental Sustainability in the East Asia and Pacific Region? An Application of a Frequency Domain Causality Test

Sustainability ◽

10.3390/su13063039 ◽

2021 ◽

Vol 13 (6) ◽

pp. 3039

Author(s):

Tomiwa Sunday Adebayo ◽

Sema Yılmaz Genç ◽

Rui Alexandre Castanho ◽

Dervis Kirikkaleli

Keyword(s):

Renewable Energy ◽

Energy Consumption ◽

Frequency Domain ◽

Co2 Emissions ◽

Technological Innovation ◽

Public Private Partnership ◽

Renewable Energy Consumption ◽

Causality Test ◽

Private Partnership

Environmental sustainability is an important issue for current scholars and policymakers in the East Asian and Pacific region. The causal and long-run effects of technological innovation, public–private partnership investment in energy, and renewable energy consumption on environmental sustainability in the East Asian and Pacific regions have not been comprehensively explored while taking into account the role of economic growth using quarterly data for the period 1992–2015. Therefore, the present study aims to close this literature gap using econometric approaches, namely Bayer–Hanck cointegration, autoregressive distributed lag (ARDL), dynamic ordinary least square (DOLS), and fully modified ordinary least square (FMOLS) tests. Furthermore, the study utilizes the frequency domain causality test to capture the causal impact of public–private partnership investment in energy, renewable energy consumption, technological innovation, and economic growth on CO2 emissions. The advantage of the frequency domain causality test is that it can capture the causality between short-term, medium-term, and long-term variables. The outcomes of the ARDL, FMOLS and DOLS show that renewable energy consumption and technological innovation mitigate CO2 emissions, while public–private partnership investment in energy and economic growth increase CO2 emissions. Moreover, the frequency causality test outcomes reveal that technological innovation, public–private partnership investment in energy, and renewable energy consumption cause CO2 emissions, particularly in the long-term. Thus, as a policy recommendation, the present study recommends promoting renewable energy consumption by focusing more on technological innovation in the East Asia and Pacific regions.

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 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.

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

International Journal of Energy Sector Management ◽

10.1108/ijesm-07-2020-0021 ◽

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 Impact of Industrialization, Trade Openness, Financial Development, and Energy Consumption on Economic Growth in Indonesia

Economies ◽

10.3390/economies9040174 ◽

2021 ◽

Vol 9 (4) ◽

pp. 174

Author(s):

Khalid Eltayeb Elfaki ◽

Rossanto Dwi Handoyo ◽

Kabiru Hannafi Ibrahim

Keyword(s):

Economic Growth ◽

Energy Consumption ◽

Least Squares ◽

Financial Development ◽

Correction Term ◽

Trade Openness ◽

Ordinary Least Squares ◽

Distributed Lag ◽

Long Run ◽

This study aimed to scrutinize the impact of financial development, energy consumption, industrialization, and trade openness on economic growth in Indonesia over the period 1984–2018. To do so, the study employed the autoregressive distributed lag (ARDL) model to estimate the long-run and short-run nexus among the variables. Furthermore, fully modified ordinary least squares (FMOLS), dynamic least squares (DOLS), and canonical cointegrating regression (CCR) were used for a more robust examination of the empirical findings. The result of cointegration confirms the presence of cointegration among the variables. Findings from the ARDL indicate that industrialization, energy consumption, and financial development (measured by domestic credit) positively influence economic growth in the long run. However, financial development (measured by money supply) and trade openness demonstrate a negative effect on economic growth. The positive nexus among industrialization, financial development, energy consumption, and economic growth explains that these variables were stimulating growth in Indonesia. The error correction term indicates a 68% annual adjustment from any deviation in the previous period’s long-run equilibrium economic growth. These findings provide a strong testimony that industrialization and financial development are key to sustained long-run economic growth in Indonesia.

General Patterns and Drivers of Changes in Employment Structure: Evidence from Five European Countries

Scientific Annals of Economics and Business ◽

10.47743/saeb-2020-0018 ◽

2020 ◽

Vol 67 (3) ◽

pp. 333-362

Author(s):

Larysa Yakymova

Keyword(s):

Service Sector ◽

Structural Changes ◽

National Level ◽

Active Phase ◽

Growth Effect ◽

Causality Test ◽

Long Run ◽

Ardl Approach ◽

Impact Of Urbanization ◽

This paper seeks to answer whether the general patterns and drivers of the sectoral employment shifts depend on a country’s level of development. To accomplish this, we examined employment in Germany, Hungary, Poland, Romania and Ukraine at the national level (1998-2018) using econometric analysis, and at the regional NUTS2 level (2009-2018) using shift-share analysis. We obtained evidence that the general trend is the service sector expansion. Using the ARDL approach and the Granger causality test, we identified long-run unidirectional causality running from income proxies to employment in services in all countries except Romania, where the opposite causality was found. We revealed that household income moderates the impact of urbanization on service sector growth in all countries except Poland. At the regional level, the change in the employment rate in services is explained by the national growth effect and slightly by the industry-mix effect if the active phase of structural changes is completed.