scholarly journals Investigating Energy Use, Environment Pollution, and Economic Growth in Developing Countries

2020 ◽  
Vol 24 (1) ◽  
pp. 275-293 ◽  
Author(s):  
Hooman Abdollahi
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Energy Consumption ◽  
Fossil Fuels ◽  
Energy Use ◽  
Total Population ◽  
Labour Force ◽  
Trade Openness ◽  
Environment Pollution ◽  
Bidirectional Relationship

AbstractAttaining continuous economic growth entails special consideration of energy sector and the environment. Compliance with this purpose may be more intricate in the uncertain milieu of developing countries. The present paper examines the nature of causality between energy consumption, environment pollution, and economic growth in 8 contiguous developing countries, considering GDP per capita, CO2 emissions, energy use, labour force, total population, urban population, capital formation, financial development, and trade openness. The author applied spatial simultaneous equations for random effects panel data to investigate the spatial interactions of adjacent countries over the period from 1998 to 2011. The findings reveal that energy consumption, environment degradation, and economic growth of a country influence those of its neighbours. Additionally, the results document bidirectional causal relationship between economic growth and environment pollution, as well as between environment pollution and energy consumption. Thus, there is a bidirectional relationship between energy use and economic growth. Fossil fuels replacement with renewable energy and usage of tax instruments to reduce greenhouse gas are recommended.

scholarly journals Causality between Trade Openness and Energy Consumption: What Causes What in High, Middle and Low Income Countries

2014 ◽  
Vol 53 (4II) ◽  
pp. 423-459
Author(s):  
Muhammad Shahbaz ◽  
Samia Nasreen ◽  
Chong Hui Ling ◽  
Rashid Sbia
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Energy Consumption ◽  
Scale Effect ◽  
Energy Demand ◽  
Trade Openness ◽  
Composite Effect ◽  
Domestic Production ◽  
Technique Effect ◽  
Advanced Technologies

Trade liberalisation has affected the flow of trade (goods and services) between developed and developing countries. The Heckscher-Ohlin trade theory reveals that under free trade, developing countries would specialise in the production of those goods that are produced by relatively abundant factors of production such as labour and natural resources. Developed countries would specialise in the production of those goods that are produced by human capital and manufactured in capital-intensive activities. Trade openness entails movement of goods produced in one country for either consumption or further processing to other country. Production of those goods is not possible without the effective use of energy. Trade openness affects energy demand via scale effect, technique effect and composite effect. Other things being same, trade openness increases economic activities, thus stimulates domestic production and hence economic growth. A surge in domestic production increases energy demand , which is commonly referred as scale effect. Such scale effect is caused by trade openness. Economic condition of the country and extent of relationship between economic growth and trade openness determine the impact of trade openness on energy consumption [Shahbaz, et al. (2013); Cole (2006)]. Trade openness enables developing economies to import advanced technologies from developed economies. The adoption of advanced technology lowers energy intensity. The use of advanced technologies result in less energy consumption and more output that is usually referred to as technique effect [Arrow (1962)]. Composite effect reveals the shift of production structure from agriculture to industry with the use of energy intensive production techniques. In initial stages of economic development economy is based largely on agriculture sector, thus the use of energy is relatively less. As economy starts shifting from agriculture to industry, the energy consumption increases.

scholarly journals Medium- and High-Tech Export and Renewable Energy Consumption: Non-Linear Evidence from the ASEAN Countries

Energies ◽  
2021 ◽  
Vol 14 (15) ◽  
pp. 4419
Author(s):  
Cong Khai Dinh ◽  
Quang Thanh Ngo ◽  
Trung Thanh Nguyen
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Fixed Effects ◽  
Fossil Fuels ◽  
Energy Use ◽  
High Tech ◽  
Renewable Energy Consumption ◽  
Development Indicators ◽  
The Impact

Sustaining economic growth while reducing dependence on fossil fuels remains a challenge for our world to fight against climate change and therefore finding a way to promote economic growth and increase renewable energy use is needed. This paper uses a 22-year panel dataset (1994–2015) of 9 countries in the Association of Southeast Asian Nations provided by the World Bank World Development Indicators to examine the impact of medium- and high-tech export on renewable energy use. We employ a fixed-effects regression model with the Driscoll–Kraay nonparametric covariance matrix estimator to account for sectoral and temporal dependence. We also control for inflation, employment, population growth, and gross domestic product per capita in our estimations. Our results demonstrate a U-shaped association between medium- and high-tech export and renewable energy consumption of these economies. The results propose that enhancing medium- and high-tech export could be a feasible solution for promoting renewable energy consumption.

Diversified Energy Use in Twentieth-Century Japanese Households

2020 ◽  
Vol 9 (1) ◽  
pp. 110-138
Author(s):  
Tomoki Shimanishi
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Interwar Period ◽  
Fossil Fuels ◽  
Energy Use ◽  
Oil And Gas ◽  
Industrial Sector ◽  
Energy Sources ◽  
Asian Countries ◽  
The 1960S

Abstract This article examines the popularization process of rentan and mametan (cylindrical anthracite briquettes and anthracite briquette balls) in Japanese households. It points out that the scarcity of wood and charcoal and the supply of anthracite and molasses (used as an adhesive) from Asian countries encouraged the invention and implementation of such new types of fuels in the interwar period. They were widely accepted because they did not change conventional energy use habits. The study also shows that until the diffusion of imported fluid fossil fuels such as oil and gas in the 1960s, those kinds of briquettes had been supporting the energy consumption of family units as transitional energy. In other words, while Japan was experiencing a so-called “energy revolution” from coal to oil in the industrial sector, the use of diverse energy sources continued in the household sector. These two different paths of energy consumption played a role in mitigating overall energy constraints and concurrently sustaining a high economic growth.

The relationship between international trade openness and economic growth in the developing economies

2015 ◽  
Vol 8 (2) ◽  
pp. 123-139 ◽  
Author(s):  
Muhammad Tahir ◽  
Toseef Azid
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Developing Economies ◽  
Labour Force ◽  
Trade Openness ◽  
Content Type ◽  
Long Run ◽  
Speed Up ◽  
Determinants Of Economic Growth ◽  
The Relationship

Purpose – This paper aims to establish a relationship between trade openness and economic growth in the context of the developing countries. This study has proposed a new measure of trade openness to the literature, as the available measures are flawed. Design/methodology/approach – Empirical analyses are carried out with the help of panel econometric techniques. Findings – The main finding of the paper is that the relationship between trade openness and economic growth is positive and statistically significant for developing countries. Besides trade openness, other determinants of economic growth such as investment and labour force are also significantly related with economic growth and carry expected coefficients. Further, it is found that frequent fluctuations in prices are detrimental to long-run economic growth. Practical implications – Therefore, the developing countries are suggested to speed up the process of trade liberalization and also pay favourable attention to other determinants of economic growth to achieve high economic growth. Originality/value – The authors have used a new measure of trade openness apart from the conventional trade volume measure of trade openness.

scholarly journals An Empirical Study on the Relationship Between Energy Consumption and GDP in China

2021 ◽  
Author(s):  
Jian Zhang ◽  
Xin Zhou
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Causal Relationship ◽  
Energy Use ◽  
Trade Openness ◽  
Returns To Scale ◽  
Simultaneous Equation ◽  
Equation Model ◽  
Use Efficiency ◽  
Urbanization Rate

Based on the provincial panel data of China from 1990 to 2018, this paper establishes a simultaneous equation model containing exogenous variables such as capital stock, urbanization and trade liberalization to explore the causal relationship between energy consumption and economic growth. The study found that China’s GDP and energy consumption influence each other, which is manifested as an endogenous causal relationship in the economic system. When the economic aggregate increases, the demand for energy has risen sharply. However, due to the low energy use efficiency production mode and environmental destruction and pollution, energy consumption shows a negative scale effect that restricts economic growth. China’s economic growth is manifested in diminishing returns to scale, and the urbanization rate and trade openness have a significant impact on energy consumption.

scholarly journals THE ECONOMY-ENERGY-ENVIRONMENT NEXUS IN IMF’S TOP 2 BIGGEST ECONOMIES: A TY APPROACH

2019 ◽  
Vol 21 (1) ◽  
pp. 1-22
Author(s):  
Ebenezer Fiifi Emire Atta Mills ◽  
Kailin Zeng ◽  
Mavis Agyapomah Baafi
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Granger Causality ◽  
Financial Development ◽  
Carbon Emissions ◽  
Energy Use ◽  
Trade Openness ◽  
Decomposition Analysis ◽  
The Usa ◽  
Variance Decomposition Analysis

This paper assesses the relationship between carbon emissions, economic growth and, energy consumption, in USA and China from the perspective of Granger causality, in a multivariate framework controlling for financial development, urbanization, and trade openness. Econometric techniques employed include unit root tests, Toda and Yamamoto Granger causality, and generalized impulse response and variance decomposition analysis for the time horizon 1980–2017. Test results indicate that governments of the USA and China cannot implement sturdier strategic energy policies in the long run without inhibiting the growth of the economy because of the bidirectional causative linkage between economic growth and energy use. A causal link does not exist between carbon emissions and financial development for both countries. Nevertheless, in the USA, there exists a unidirectional Granger causality controlling from energy consumption to financial development. In both economies, urbanization Granger causes CO2 emissions and energy use but the reverse does not hold. An upsurge in energy consumption and carbon emissions will lead to a surge in trade openness but not vice versa for China. A noteworthy result is that there is a substantiation of unidirectional causality from energy consumption to carbon emissions in both countries. In the USA, impulse response and variance decomposition analysis disclosed the effect of financial development is projected to have diminutive magnitude whiles in the future, energy use, economic growth, trade openness, and urbanization would influence carbon emissions significantly. The impacts of trade openness and financial development are expected to be of little importance in China. The general findings implied that urbanization, economic growth, and energy consumption influenced CO2 emissions significantly in the USA and China. Understanding these similar and contrasting situations is essential to reaching a global agreement on climate change affecting IMF’s top 2 biggest economies.

Electricity consumption and economic growth in ASEAN

2017 ◽  
Vol 5 (2) ◽  
pp. 16
Author(s):  
Ahmad Ghazali Ismail ◽  
Arlinah Abd Rashid ◽  
Azlina Hanif
Keyword(s):  
Economic Growth ◽  
Energy Use ◽  
Electricity Consumption ◽  
Panel Estimation ◽  
Real Gdp ◽  
Long Run ◽  
Bidirectional Relationship ◽  
Short Run ◽  
Using Data ◽  
The Relationship

The relationship and causality direction between electricity consumption and economic growth is an important issue in the fields of energy economics and policies towards energy use. Extensive literatures has discussed the issue, but the array of findings provides anything but consensus on either the existence of relations or direction of causality between the variables. This study extends research in this area by studying the long-run and causal relations between economic growth, electricity consumption, labour and capital based on the neo-classical one sector aggregate production technology mode using data of electricity consumption and real GDP for ASEAN from the year 1983 to 2012. The analysis is conducted using advanced panel estimation approaches and found no causality in the short run while in the long-run, the results indicate that there are bidirectional relationship among variables. This study provides supplementary evidences of relationship between electricity consumption and economic growth in ASEAN.

scholarly journals A Review on Energy and Renewable Energy Policies in Iran

2021 ◽  
Vol 13 (13) ◽  
pp. 7328
Author(s):  
Saeed Solaymani
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Causal Relationship ◽  
Energy Security ◽  
Fossil Fuels ◽  
Agricultural Products ◽  
Energy Resources ◽  
Causality Analysis ◽  
Renewable Energy Consumption

Iran, endowed with abundant renewable and non-renewable energy resources, particularly non-renewable resources, faces challenges such as air pollution, climate change and energy security. As a leading exporter and consumer of fossil fuels, it is also attempting to use renewable energy as part of its energy mix toward energy security and sustainability. Due to its favorable geographic characteristics, Iran has diverse and accessible renewable sources, which provide appropriate substitutes to reduce dependence on fossil fuels. Therefore, this study aims to examine trends in energy demand, policies and development of renewable energies and the causal relationship between renewable and non-renewable energies and economic growth using two methodologies. This study first reviews the current state of energy and energy policies and then employs Granger causality analysis to test the relationships between the variables considered. Results showed that renewable energy technologies currently do not have a significant and adequate role in the energy supply of Iran. To encourage the use of renewable energy, especially in electricity production, fuel diversification policies and development program goals were introduced in the late 2000s and early 2010s. Diversifying energy resources is a key pillar of Iran’s new plan. In addition to solar and hydropower, biomass from the municipal waste from large cities and other agricultural products, including fruits, can be used to generate energy and renewable sources. While present policies indicate the incorporation of sustainable energy sources, further efforts are needed to offset the use of fossil fuels. Moreover, the study predicts that with the production capacity of agricultural products in 2018, approximately 4.8 billion liters of bioethanol can be obtained from crop residues and about 526 thousand tons of biodiesel from oilseeds annually. Granger’s causality analysis also shows that there is a unidirectional causal relationship between economic growth to renewable and non-renewable energy use. Labor force and gross fixed capital formation cause renewable energy consumption, and nonrenewable energy consumption causes renewable energy consumption.

scholarly journals The Impact of Lack of Clean Cooking Fuels on Sustainable Development in Developing Countries

2018 ◽  
Author(s):  
Ifeoluwa Garba ◽  
Richard Bellingham
Keyword(s):  
Sustainable Development ◽  
Developing Countries ◽  
Fossil Fuels ◽  
Energy Use ◽  
Business Models ◽  
Clean Energy ◽  
Well Being ◽  
The World ◽  
Cooking Fuels ◽  
The Impact

Access to energy is crucial in tackling many of the current global development challenges that impact on people’s economic, health and social well-being as well as the ability to meet the commitments of reducing carbon emissions through clean energy use. Despite increased attention from multiple governments and agencies, energy poverty remains a serious sustainable development issue in many developing countries. To date, most research have focused on general access to electricity and the generation of clean energy to replace fossil fuels, failing to address the lack of basic access to clean energy for cooking and heating. More people in the world lack access to clean cooking fuels than to electricity. This issue is one aspect of a broader research which investigates the impacts of optimized energy policy and energy business models on sustainable development in developing countries.

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