scholarly journals Dynamic Modelling of Energy and Growth in South Asia

2007 ◽  
Vol 46 (4II) ◽  
pp. 481-498 ◽  
Author(s):  
Muhammad Arshad Khan ◽  
Abdul Qayyum
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Energy Consumption ◽  
Energy Conservation ◽  
Raw Materials ◽  
Dynamic Modelling ◽  
Causal Link ◽  
Conservation Policies ◽  
Key Factor ◽  
Energy Dependent

Energy plays an important role on the demand and the supply sides of the economy. On the demand side, energy is one of the products a consumer decides to buy to maximise his utility. On the supply side, energy is the key factor of production in addition to labour, capital and other raw materials. Energy is considered to be the key element in the socio-economic development of a country. It also helps to improve the living standards of the society through the increase in economic growth. This implies that there is a causal link running from energy consumption to economic growth. If causality runs from energy consumption to GDP then it implies that an economy is energy dependent and hence energy is a stimulus to economic growth [Jumbe (2004)]. Shortage of energy may negatively affect economic growth and may cause poor economic performance leading to a reduction of income and employment. On the other hand, if causality runs from GDP to energy consumption, this implies that economy is not energy dependent, and hence energy conservation policies may be implemented without adverse effects on economic growth and employment [Masih and Masih (1997)]. If there is no causality between energy consumption and GDP, it implies that energy conservation policies may be pursued without affecting the economy [Jumbe (2004)]. Based on these arguments, it is necessary to analyse the link between energy consumption and economic growth because it is often argued that the increased availability of energy services act as key stimulus of the process of economic development.

scholarly journals Pollution, Energy Consumption and Economic Growth: evidence from India, China and Brazil

2011 ◽  
Vol 2 (5) ◽  
pp. 233-242
Author(s):  
Mohsen Mehrara
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Environmental Quality ◽  
High Energy ◽  
Smooth Transition ◽  
Conservation Policies ◽  
Bric Countries ◽  
Rapid Economic Growth ◽  
Smooth Transition Regression ◽  
Energy Dependent

This paper examines the relationships between the energy consumption, GDP growth and emission, using Panel Smooth Transition Regression (PSTR) model for BRIC countries over the period 1960 –2006. Our results reveal that environmental quality in these countries has increasingly suffered from high energy consumption. Moreover, rapid economic growth and international trade in energy intensive goods have progressively increased energy consumption. This suggests that excessively high economic growth is a curse for environmental quality and energy conservation policies to reduce unnecessary wastage of energy should be kicked off for energy-dependent BRIC countries.

scholarly journals Dynamic Modelling of Causal Relationship between Energy Consumption, CO2 Emission, and Economic Growth in SE Asian Countries

Energies ◽  
2020 ◽  
Vol 13 (24) ◽  
pp. 6664
Author(s):  
Jaruwan Chontanawat
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Causal Relationship ◽  
Alternative Energy ◽  
Dynamic Modelling ◽  
High Energy ◽  
Sustainable Growth ◽  
Asian Countries ◽  
Conservation Policies ◽  
Long Run

Southeast Asian region is fast growing in terms of economy with rapid population growth, high energy consumption, and pollution. Understanding these linkages are crucial to guidance of appropriate policy. This study aims to examine the causal relationship between energy consumption with economic growth and CO2 emissions of the four selected Asian countries, namely Indonesia, Malaysia, Philippines, and Thailand between the years 1971–2017 using Johansen cointegration method combined with Granger causality model. The results found the evidence of cointegration in all countries implying a long-run relationship among energy consumption, economy and pollution exists. The causality main results show the evidence of unidirectional causality running from economic growth to energy consumption in Indonesia, Malaysia, and Thailand, while the opposite direction was found in Philippines. The results of Indonesia, Malaysia, and Thailand support “conservative hypothesis” suggesting that energy conservation policies could be adopted in these countries as it would not constrain growth of the economies. Whereas the results of Philippines appear to support “growth hypothesis” implying that energy is a key driver to stimulate economy. Limiting the use of energy could affect the economy. Instead, the policies, therefore, should focus on promoting other alternative energy source such as renewable energy in order to maintain sustainable growth.

scholarly journals Energy Sources and Gross Domestic Product: International Evidence

2014 ◽  
Vol 53 (4II) ◽  
pp. 477-490 ◽  
Author(s):  
Waseem Ahmad ◽  
Tanvir Ahmed
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Energy Conservation ◽  
Energy Use ◽  
Output Growth ◽  
Point Of View ◽  
Energy Sources ◽  
Conservation Policies ◽  
The Impact ◽  
The Relationship

The relationship between energy consumption and economic growth received a significant amount of attention in energy economics literature [Al-Iraiani (2006)]. Rufael (2006) stated that different energy sources are a necessary requirement for economic and social development and no country in the world has progressed from subsistence economy without the use of energy. In this regard, four views have emerged over time about the relationship between energy consumption and output growth. One point of view is that energy is the prime source of value and other factors like labor and capital cannot do without energy. Many studies argue that the impact of energy use on growth depends on the structure of the economy and the stage of economic growth of the country concerned [Ghali and Sakka (2004)]. The bulk of the literature reports a uni-directional causality from energy consumption to economic growth. When the causality runs from energy consumption to economic growth, it is also called ‘growth hypothesis’. Table 1 provides a list of the studies, which show such results. It implies that an increase in energy consumption has a significant impact on economic growth and if it is positive, then energy conservation policies have a detrimental impact on economic growth. Alternatively, if an increase in energy consumption has significant negative impact on GDP, it implies that growing economy needs a less amount of energy consumption, may be due to shift towards less energy intensive sectors [Payne (2010)]. Second point of view is that economic growth has a positive influence on energy consumption. There may be uni–directional causality from economic growth to energy consumption. Table 1 displays a list of studies showing such results. When the causality runs from economic growth to energy consumption, it is often referred to as ‘conservation hypothesis’. It implies that energy conservation policies formulated to reduce energy consumption may not adversely affect economic growth. Third point of view is that the cost of energy use is very small compared to GDP and consequently its impact on economic growth is nonsignificant. There may be no causality between energy consumption and GDP; it is often referred to as ‘neutrality hypothesis”.

Study on Dynamic Relationship between Economic Growth and Energy Consumption in Chongqing - Based on 1980-2011 Data

2013 ◽  
Vol 448-453 ◽  
pp. 4319-4324
Author(s):  
Sheng Wang ◽  
Chun Yan Dai ◽  
En Chuang Wang ◽  
Chun Yan Li
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Energy Consumption ◽  
Energy Demand ◽  
Industrial Structure ◽  
Impulse Response Function ◽  
Improve Energy Efficiency ◽  
Dynamic Relationship ◽  
Equilibrium Relationship

Analyzed the dynamic interaction characteristics of Chongqing Economic growth and energy consumption between 1980-2011 based on vector auto regression model, impulse response function. The results showed that: 1 Between the Chongqing's economic growth and energy consumption exist the positive long-term stable equilibrium relationship, Chongqing's economic development depending on energy consumption is too high, to keep the economy in Chongqing's rapid economic development, energy relatively insufficient supply sustainable development must rely on the energy market, which will restrict the development of Chongqing's economy. 2At this stage, Chongqing continuing emphasis on optimizing the industrial structure to improve energy efficiency at the same time, the key is to establish and improve the energy consumption intensity and total energy demand "dual control" under the security system, weakening the energy bottleneck effect on economic growth.

The Role of Entrepreneurial Performance in Supporting Economic Development of Countries: An Empirical Approach

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Valentina Diana Rusu ◽  
Angela Roman
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Social Progress ◽  
Entrepreneurial Performance ◽  
Panel Data Estimation ◽  
Positive Effects ◽  
National Competitiveness ◽  
Key Factor ◽  
Future Economic Development

Abstract Entrepreneurship is recognized as one of the factors stimulating economic growth and increasing economic competitiveness. In addition, the Europe 2020 Strategy has focused its attention on entrepreneurship as a key factor of economic growth, social progress, and employment. In this context, our study examines the role of entrepreneurial performance for sustaining the development of countries, focusing on a sample of European countries. We attempt to reveal if increasing entrepreneurial performance would have significant influence on improving the economic position of countries and their future economic development. Starting from the OECD-Eurostat Entrepreneurship Indicators Programme we use a set of entrepreneurial performance indicators as independent variables and examine to what extent they can influence competitiveness and economic growth, seen as dependent variables of the models. We focus on a period of 10 years (2008–2017) and we apply panel-data estimation techniques. Because the period considered includes the period of the last international financial crisis, we also include in our analysis a dummy variable. Our results emphasize that the changes in entrepreneurial performance play a significant role in enhancing national competitiveness and economic growth. Our findings contribute to the expansion of literature in the field by providing evidence on the correlation of indicators that measure entrepreneurial performance with national competitiveness and economic growth. Moreover, our findings point out the need of the policy makers to adopt measures and policies that help and stimulate entrepreneurs to become more performant because they can generate positive effects to the economy as a whole.

Energy Consumption, CO2 Emissions and Economic Growth: Evidence from India

2011 ◽  
Vol 12 (1) ◽  
pp. 85-122 ◽  
Author(s):  
Aviral Kumar Tiwari
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Energy Conservation ◽  
Co2 Emissions ◽  
Efficient Utilization

The study examined causality using static and dynamic frameworks, by considering energy consumption, C02 emissions and economic growth for India. It used the Granger approach (VECM framework) along with the Dolado and L체tkepohl approach. It found that CO2 Granger-causes GDP while energy consumption does not Granger-cause GDP, GDP does not Granger-cause CO2 while energy consumption Granger-causes CO2 emissions, and CO2 emissions Granger-causes energy consumption but GDP does not Granger-causes CO2 emissions. This implies that India should opt for policies that stress on energy conservation and efficient utilization of energy.

scholarly journals Analysis of Factors Influencing Carbon Emissions in the Energy Base, Xinjiang Autonomous Region, China

2020 ◽  
Vol 12 (3) ◽  
pp. 1089
Author(s):  
Jiancheng Qin ◽  
Hui Tao ◽  
Chinhsien Cheng ◽  
Karthikeyan Brindha ◽  
Minjin Zhan ◽  
...  
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Carbon Emissions ◽  
Energy Intensity ◽  
Economic Structure ◽  
Energy Structure ◽  
Intensity Effect ◽  
Entire Energy ◽  
Key Factor ◽  
Main Factors

Analyzing the driving factors of regional carbon emissions is important for achieving emissions reduction. Based on the Kaya identity and Logarithmic Mean Divisia Index method, we analyzed the effect of population, economic development, energy intensity, renewable energy penetration, and coefficient on carbon emissions during 1990–2016. Afterwards, we analyzed the contribution rate of sectors’ energy intensity effect and sectors’ economic structure effect to the entire energy intensity. The results showed that the influencing factors have different effects on carbon emissions under different stages. During 1990–2000, economic development and population were the main factors contributing to the increase in carbon emissions, and energy intensity was an important factor to curb the carbon emissions increase. The energy intensity of industry and the economic structure of agriculture were the main factors to promote the decline of entire energy intensity. During 2001–2010, economic growth and emission coefficient were the main drivers to escalate the carbon emissions, and energy intensity was the key factor to offset the carbon emissions growth. The economic structure of transportation, and the energy intensity of industry and service were the main factors contributing to the decline of the entire energy intensity. During 2011–2016, economic growth and energy intensity were the main drivers of enhancing carbon emissions, while the coefficient was the key factor in curbing the growth of carbon emissions. The industry’s economic structure and transportation’s energy intensity were the main factors to promote the decline of the entire energy intensity. Finally, the suggestions of emissions reductions are put forward from the aspects of improving energy efficiency, optimizing energy structure and adjusting industrial structure etc.

The Empirical Research of the Relationship between Economic Growth and Energy Consumption in Hebei Province

2014 ◽  
Vol 962-965 ◽  
pp. 2191-2194
Author(s):  
Xiao Gang Li ◽  
Han Meng Zhang
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Hebei Province ◽  
Total Energy Consumption ◽  
Causality Test ◽  
Correction Model ◽  
Model Studies ◽  
Energy Dependent ◽  
The Relationship ◽  
Integration Analysis

According to the statistics from 1980 to 2010 in Hebei province's GDP growth, as well as the total energy consumption EC statistics., the author conducted an empirical study on the relationship between economic growth and energy consumption in Hebei, using co-integration analysis, Granger causality test and error correction model. Studies have shown that it exists cointegration between economic growth and energy consumption in Hebei Province, and there was unidirectional causality from energy consumption to economic growth. that is, economic growth in Hebei Province is energy-dependent. Based on the research results, this paper gives some suggestions for economic development in Hebei Province.

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

2011 ◽  
Vol 10 (7) ◽  
pp. 75 ◽  
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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