scholarly journals Key Drivers of Consumption-Based Carbon Emissions: Empirical Evidence from SAARC countries

2021 ◽  
Author(s):  
Komal Kanwar Shekhawat ◽  
Arvind Kumar Yadav ◽  
Md Sahnewaz Sanu ◽  
Pushp Kumar
Keyword(s):  
Energy Consumption ◽  
Co2 Emissions ◽  
Environmental Degradation ◽  
Renewable Energy Sources ◽  
Trade Openness ◽  
Panel Cointegration ◽  
Long Run ◽  
Growth Energy ◽  
Trade Share ◽  
Cointegration Relationship

Abstract To devise an appropriate climate policy dealing with environmental degradation, reliable measurement of CO2 emissions is essential. In the recent past, most researchers have utilized production-based emissions in their studies, ignoring the important role of consumption-based emissions in environmental degradation. Therefore, the present research examines the drivers of consumption-based CO2 emissions in SAARC nations over the period 1990 to 2018. By employing traditional and second-generation panel cointegration methodologies, the study, more specifically, explores the link between consumption-based CO2 emissions and its four macroeconomic determinates, namely, GDP growth, energy consumption, FDI, and trade openness (measured by Composite Trade Share Index). The study also applies the FMLOS and DOLS techniques for calculating the long-run elasticities of regressors with respect to the explained variable. The results establish a cointegration relationship between the variables and validate the “EKC hypothesis” for the SAARC region. It is also found that in the long run, as expected, energy consumption enhances the consumption-based CO2 emissions while FDI and trade openness improve the environmental quality by plummeting emissions. Most importantly, the study rejects the “pollution-haven hypothesis” for the SAARC region based on the negative and statistically significant coefficient of FDI. Lastly, based on the results, some policies are recommended for the abatement of environmental degradation in SAARC countries. As the SAARC nations rely heavily on fossil-based energy, it is suggestive for these economies to enhance the level of energy efficiency and augment the share of renewable energy sources in the energy-mix. Furthermore, the policy-designers in this region should encourage trade openness and liberalize inward FDI for containing consumption-based emissions.

scholarly journals Energy Consumption, Income, Trading Openness, and Environmental Pollution: Testing Environmental Kuznets Curve Hypothesis

2020 ◽  
Vol 55 (1) ◽  
Author(s):  
Nguyen Van Chien
Keyword(s):  
Energy Consumption ◽  
Environmental Pollution ◽  
Co2 Emissions ◽  
Environmental Kuznets Curve ◽  
Renewable Energy Sources ◽  
Trade Openness ◽  
Energy Sources ◽  
Kuznets Curve ◽  
Long Run ◽  
Short Run

The purpose of this study is to examine the effects of energy consumption, economic growth, and trade openness on environmental pollution in a developing country, especially in the case of Vietnam. The study was conducted on the basis of time-series data collected in the period of time between the years 1990 and 2014. By a method of autoregressive distributed lag and testing the hypothesis of the environmental Kuznets curve, our result demonstrated that environmental Kuznets curve could be found in both the long run and short run. There existed an inverted U-shaped relationship between different pollutants and per capita income. Further, energy consumption could positively affect carbon dioxide (CO2) emissions in the short run, but negatively could affect CO2 emissions in the long run because of transformation from non-renewable energy sources to renewable energy sources. In addition, environmental pollution converged on its long-run equilibrium by at least 29.4% with the speed adjustment via the channel of income, energy consumption, and trade openness. In terms of trade openness, the country has a positive and significant effect on CO2 emissions in both the long run and short run.

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.

THE DRIVERS OF ENVIRONMENTAL DEGRADATION IN ASEAN+China: DO FINANCIAL DEVELOPMENT AND URBANIZATION HAVE ANY MODERATING EFFECT?

2020 ◽  
pp. 2050024 ◽  
Author(s):  
KIZITO UYI EHIGIAMUSOE
Keyword(s):  
Renewable Energy ◽  
Energy Consumption ◽  
Financial Development ◽  
Environmental Degradation ◽  
Trade Openness ◽  
High Carbon ◽  
Cross Sectional ◽  
Cross Sectional Dependence ◽  
Growth Energy ◽  
The Impact

This study examines the drivers of environmental degradation in [Formula: see text]. It focusses on three unresolved questions: (i) Does the inclusion of China in ASEAN panel aggravate environmental degradation, given that China is a high carbon emissions country? (ii) Does financial development moderate the impact of energy consumption on environmental degradation in ASEAN? (iii) Does urbanization moderate the impact of energy consumption on environmental degradation in ASEAN? It employs empirical strategies that account for heterogeneity, endogeneity and cross-sectional dependence. The results show that economic growth, energy consumption and non-renewable energy aggravate environmental degradation, whereas renewable energy, foreign direct investment and trade openness mitigate it. The inclusion of China in ASEAN panel weakens the EKC hypothesis. Financial development favorably moderates the effect of energy consumption on environmental degradation in ASEAN, but adversely moderates the effect in [Formula: see text]. Urbanization adversely moderates the impact of energy consumption on environmental degradation in both panels. Hence, efforts to address environmental degradation should consider these different drivers.

scholarly journals FINANCIAL DEVELOPMENT, INCOME, TRADE, AND URBANIZATION ON CO2 EMISSIONS: NEW EVIDENCE FROM KYOTO ANNEX COUNTRIES

2018 ◽  
Vol 9 (3) ◽  
pp. 17 ◽  
Author(s):  
Muhammad Rizwan Nazir ◽  
Muhammad Imran Nazir ◽  
Shujahat Haider Hashmi ◽  
Zeeshan Fareed
Keyword(s):  
Co2 Emissions ◽  
Financial Development ◽  
Environmental Degradation ◽  
Trade Openness ◽  
Negative Influence ◽  
Financial Reforms ◽  
Long Run ◽  
Short Run ◽  
Carbon Dioxide Co2 ◽  
The Impact

This study attempts to empirically investigate the impact of financial development, income, trade openness, and urbanization on carbon dioxide (CO2) emissions for the 21 Kyoto Annex countries using a balance panel data and GMM system over the period of 1970-2016. The results show a positive relationship between income and CO2 emissions in long-run. All models support the EKC hypothesis which assumes an inverted U-shaped relationship among income and environmental degradation. Financial development has a long-run negative influence on CO2 emissions, indicating that financial development reduces the environmental degradation. This means that financial development can be used as an implement to keep the degradation environmental clean by presenting financial reforms. The urbanization declines the CO2 emissions; however, it is essential for the policymakers and urban planners in these countries to control the rapid increase in urbanization. The panel causality confirms that bi-directional causal relationship between financial development, CO2 emissions, income, trade openness, and Urbanization in short-run.

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 Environmental Kuznets Curve Hypothesis on CO2 Emissions: Evidence for China

2021 ◽  
Vol 14 (3) ◽  
pp. 93
Author(s):  
Jihuan Zhang
Keyword(s):  
Energy Consumption ◽  
Co2 Emissions ◽  
Environmental Kuznets Curve ◽  
Trade Openness ◽  
Co2 Reduction ◽  
Kuznets Curve ◽  
Ekc Hypothesis ◽  
Distributed Lag ◽  
Long Run ◽  
Negative Effect

China is the largest CO2 emitter in the world, and it shared 28% of the global CO2 emissions in 2017. According to the Paris Agreement, it is estimated that China’s CO2 emissions will reach its peak by 2030. However, whether or not the CO2 emissions in China will rise again from its peak is still unknown. If the emission level continues to increase, the Chinese policymakers might have to introduce a severe CO2 reduction policy. The aim of this paper is to conduct an empirical analysis on the long-standing relationship between CO2 emissions and income while controlling energy consumption, trade openness, and urbanization. The autoregressive distributed lag (ARDL) model and the bounds test were adopted in evaluating the validity of the Environmental Kuznets Curve (EKC) hypothesis. The quantile regression was also used as an inference approach. The study reveals two major findings: first, instead of the conventional U-shaped EKC hypothesis, there is the N-shaped relationship between CO2 emissions and real gross domestic product (GDP) per capita in the long run. Second, a positive effect of energy consumption and a negative effect of urbanization on CO2 emissions, in the long run, are also estimated. Quantitatively, if energy consumption rises by 1%, then CO2 emissions will increase by 0.9% in the long run. Therefore, the findings suggest that a breakthrough, in terms of policymaking and energy innovation under China’s specific socioeconomic and political circumstances, are required for future decades.

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.

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 Carbon Emissions and Income Trajectory in Eight Heterogeneous Countries: The Role of Trade Openness, Energy Consumption and Population Dynamics

2013 ◽  
Vol 9 (2) ◽  
Author(s):  
OLUWOLE OWOYE ◽  
OLUGBENGA A. ONAFOWORA
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Co2 Emissions ◽  
Trade Openness ◽  
Policy Decision ◽  
Kuznets Curve ◽  
Ekc Hypothesis ◽  
Sample Mean ◽  
Long Run ◽  
Wide Range

This paper examines the long-run and dynamic temporal relationships between economic growth, energy consumption, population density, trade openness, and carbon dioxide    (CO2) emissions in Brazil, China, Egypt, Japan, Mexico, Nigeria, South Korea, and South Africa based on the environment Kuznets curve (EKC) hypothesis. We employ the ARDL Bounds test to cointegration and CUSUM and CUSUMSQ tests to ensure long-run cointegration and parameter stability.  The estimated results show that the inverted U-shaped EKC hypothesis holds in Japan and South Korea.  In the other six countries, the long-run relationship between economic growth and CO2 emissions follows an N-shaped trajectory and the estimated turning points are much higher than the sample mean. In addition, the results indicate that energy consumption Granger-causes both CO2 emissions and economic growth in all the countries.  An important implication of our findings is that it would be ill-advised for the policy decision makers to adopt the EKC postulate as the conceptual basis for policies favoring economic growth unconditionally. A wide range of policy initiatives that would induce increased demand for better environment quality and its sustainability should be explored in tandem with measures to spur economic growth.

scholarly journals The Role of Energy Consumption, Economic Growth and Globalization in Environmental Degradation: Empirical Evidence from the BRICS Region

2021 ◽  
Vol 13 (4) ◽  
pp. 1924
Author(s):  
Habib Ur Rahman ◽  
Umer Zaman ◽  
Jarosław Górecki
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Least Squares ◽  
Environmental Degradation ◽  
Carbon Emission ◽  
Panel Cointegration ◽  
Ordinary Least Squares ◽  
Kuznets Curve ◽  
Annual Data ◽  
Long Run

This paper examines the effect of energy consumption, globalization, and economic growth on the CO2 emission of the BRICS (Brazil, Russian Federation, India, China and South Africa) region. Using annual data from 1989 to 2019, this research applies a panel cointegration approach. In this framework, we use Fully Modified Ordinary Least Squares (FMOLS) and Dynamic Ordinary Least Squares (DOLS) methods to examine the long-run relationship between the selected variables. This empirical investigation reveals that there is a long-run association between these variables, and energy consumption positively and significantly affects the carbon emission in these countries. These results indicate that energy consumption is the primary source of environmental degradation in the region. In contrast, the globalization (KOF Index of Globalization) negatively and significantly affects the carbon emission, implying the improvement of environmental quality. Further, this research could not find the presence of environmental Kuznets curve in the region. Policy guidelines are suggested in the line of findings.

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