scholarly journals Nexus Between Carbon Emissions, Energy Consumption, Urbanization and Economic Growth in Asia: Evidence From Common Correlated Effects Mean Group Estimator (CCEMG)

2021 ◽  
Vol 8 ◽  
Author(s):  
Yusuf Babatunde Adeneye ◽  
Amar Hisham Jaaffar ◽  
Chai Aun Ooi ◽  
Say Keat Ooi
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Carbon Emission ◽  
Panel Cointegration ◽  
Energy Prices ◽  
Asian Countries ◽  
Cross Sectional ◽  
Long Run ◽  
Cointegration Tests ◽  
Common Correlated Effects

This study investigates the dynamic relationships between carbon emission, urbanization, energy consumption, and economic growth in a panel of 42 Asian countries for the period 2000–2014 using dynamic common correlated effects panel data modeling. This study employs second generation cross-sectional Pesaran (J. Appl. Econom., 2007, 22(2), 265-312) panel unit root, Westerlund panel cointegration tests (Econom. Stat., 2007, 69(6), 709-748), and Pesaran’s (Econometrica, 2006, 74(4), 967-1012) common correlated effects mean group estimation technique. These approaches allow for cross-sectional dependence, and are robust to the presence of common factors, serial correlation, and slope heterogeneity. The Common Correlated Effect Mean Group test reveals a high average coefficient of 0.602 between carbon emission and energy consumption while low coefficients of 0.114 and 0.184 for the pairs of carbon emission-urbanization and carbon emission-GDP, respectively for the panel as a whole, suggesting a cointegration between carbon emission, urbanization, energy consumption, and economic growth. The results indicate that there is relatively high carbon emission especially for highly populated and geopolitical risk Asian countries in the short run. Findings reveal long run relationships between the variables, which is attributed to the on-going carbon taxation and energy prices. Our results are robust to PMG-ARDL estimator. Overall, these findings cast important implications on renewable energy policy and urban planning insights for the policymakers.

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.

scholarly journals Panel Cointegration and Pooled Mean Group Estimations of Energy-Output Dynamics in South Asia

2012 ◽  
Vol 4 (5) ◽  
pp. 277-286 ◽  
Author(s):  
Anupam Das ◽  
Muhammad Akhtaruzzaman .
Keyword(s):  
Energy Consumption ◽  
South Asia ◽  
South Asian ◽  
Specific Effect ◽  
Panel Cointegration ◽  
Energy Output ◽  
Asian Countries ◽  
Pooled Mean Group ◽  
Long Run ◽  
Cointegration Tests

This study employs the panel cointegration and pooled mean group (PMG) techniques to examine the long run relationships between energy consumption and GDP for 5 South Asian countries from 1981 to 2009. Unit root and panel cointegration tests find a long run relationship between energy consumption and GDP after allowing for country-specific effect. Furthermore, we use the PMG technique to identify the magnitude of this relationship. Our results are consistent with the theory that suggests a role of energy use in GDP. On average, a 1% increase in energy consumption leads to a 0.61% increase in the long run GDP in South Asia from 1981 to 2009. Hence, it is apparent that energy is an important component to maintain the economic activities in these countries. These results have important implications for policy makers of South Asian countries which have experienced magnificent growth performance along with a sharp rise in consumption demand for energy in last few decades.

scholarly journals The Causality between Education and GDP Growth in Asian Countries

2015 ◽  
Vol 50 ◽  
pp. 28-35 ◽  
Author(s):  
Mohsen Mehrara ◽  
Maysam Musai
Keyword(s):  
Economic Growth ◽  
Formal Education ◽  
Panel Cointegration ◽  
Capital Formation ◽  
Cointegration Analysis ◽  
Point Of View ◽  
Asian Countries ◽  
Variable Model ◽  
Long Run ◽  
Educational Investments

This paper investigates the causal relationship between education and GDP in 40 Asian countries by using panel unit root tests and panel cointegration analysis for the period 1970-2010. A three-variable model is formulated with capital formation as the third variable. The results show a strong causality from investment and economic growth to education in these countries. Yet, education does not have any significant effects on GDP and investment in short- and long-run. It means that it is the capital formation and GDP that drives education in mentioned countries, not vice versa. So the findings of this paper support the point of view that it is higher economic growth that leads to higher education proxy. It seems that as the number of enrollments raise, the quality of the education declines. Moreover, the formal education systems are not market oriented in these countries. This may be the reason why huge educational investments in these developing countries fail to generate higher growth. By promoting practice-oriented training for students particularly in technical disciplines and matching education system to the needs of the labor market, it will help create long-term jobs and improve the country’s future prospects.

Terrorism, environmental pollution, foreign direct investment (FDI), energy consumption, and economic growth: Evidences from China, India, Israel, and Turkey

2020 ◽  
pp. 0958305X2091940
Author(s):  
Melike E Bildirici
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Energy Consumption ◽  
Environmental Pollution ◽  
Direct Investment ◽  
Panel Cointegration ◽  
Panel Causality ◽  
Policy And Strategy ◽  
Cointegration Tests ◽  
Causality Tests

In this paper, it was aimed to investigate the relation between economic growth, terrorism, foreign direct investment (FDI) inflow, environmental pollution, and energy consumption in China, India, Israel, and Turkey for a time span of 43 years from 1975 to 2017. Three different panel cointegration methods to determine the cointegration relation and two different causality methods to find the direction of causality were simultaneously used, since the presence of cointegration and direction of causality are fundamental to design economic policy and strategy. After similar results from panel cointegration tests were obtained, the causality tests were applied. Panel causality tests determined the evidence of uni-directional causality from terrorism, FDI, and energy usage to CO2 emission.

scholarly journals The Relationship between Financial Development and Renewable Energy Consumption in South Asian Countries

2021 ◽  
Author(s):  
Sakib Amin ◽  
Farhan Khan ◽  
Ashfaqur Rahman
Keyword(s):  
Renewable Energy ◽  
Energy Consumption ◽  
Financial Development ◽  
Energy Use ◽  
Green Energy ◽  
Renewable Energy Consumption ◽  
Causality Test ◽  
Cross Sectional ◽  
Long Run ◽  
Cointegration Tests

Abstract We analyse how the financial development and green energy use are linked to the countries of South Asia from 1990 to 2018. Domestic credit to the private sector and renewable energy consumption is being used in this paper as indicators of financial development and the use of renewable energy. On the indication of cross-sectional dependency among the variables of the models, we apply second generation panel unit root tests and cointegration tests to check the stationarity properties and long-run cointegration relation among the variables. We find that variables are stationary at the first difference, and long-run cointegration exists. By applying robust dynamic heterogeneous and cross-section augmented estimators, we find that increase in GDP increases renewable energy consumption by 1.56-0.50%; however reduces by 0.07-0.03% after certain thresholds. Furthermore, increase in financial development, on average, reduces the propensity of renewable energy consumption by 0.15-0.07% in the long-run. On the other hand, the Dumitrescu-Hurlin panel causality test shows a unidirectional relationship from GDP to financial development and financial development to renewable energy consumption but not vice versa. We suggest that the selected countries revisit and restructure the renewable energy policy and emphasise institutional reforms to strengthen renewable energy development in the upcoming years.

scholarly journals Energy and economic growth in G20 countries: Panel cointegration analysis

2020 ◽  
Vol 9 (2) ◽  
pp. 56 ◽  
Author(s):  
Aynur Pala
Keyword(s):  
Economic Growth ◽  
Global Warming ◽  
Energy Consumption ◽  
Energy Demand ◽  
Panel Cointegration ◽  
Cointegration Analysis ◽  
Vector Error Correction ◽  
Long Run ◽  
Equilibrium Relationship ◽  
Dynamic Ols

Rising economic performance has enlarged energy demand, carbon emissions and global warming. Policymakers need to avoid global warming. Therefore, energy-growth nexus is important. This paper empirically investigates the relationship between energy consumption and economic growth for a panel of G20 countries over the period 1990-2016. For this purpose, the paper considers the panel cointegration and panel vector error correction model. Panel cointegration test set out a long-run equilibrium relationship. Long-run relationship is estimated using a Fully Modified OLS (FMOLS) and Dynamic OLS (DOLS). The results show that causality run from energy consumption to GDP. It is indicates that “growth hypothesis” is valid for G20 countries.

scholarly journals DYNAMICS OF EXPORTS, INFRASTRUCTURE, AND GROWTH IN GCC: VARS AND CAUSALITY TESTING

2021 ◽  
Vol 5 (2) ◽  
Author(s):  
Sufian Eltayeb Mohamed
Keyword(s):  
Economic Growth ◽  
Fixed Effects ◽  
Financial Institution ◽  
Random Effect ◽  
Random Effect Model ◽  
Panel Cointegration ◽  
Least Square ◽  
Public Expenditures ◽  
Long Run ◽  
Cointegration Tests

The paper is concerned with analyzing the dynamic effects of exports and infrastructure on GCC economic growth. Panel cointegration methodology is used to test for the existence of a long relationship between the variable. Two tests, Kao (1999) and Johansen cointegration tests are applied to check for cointegration. The results of the two tests reveal that there exists a long run co-integrating relationship between export and infrastructure proxies and economic growth in GCC countries. Additionally, fully modified least square (FMOLS) and dynamic ordinary least square (DOLS) were used to test the magnitude of the long relationship among variables. The results show that export and infrastructure variables are positive and have significant impact on the long run growth of the GCC economy. Further, fixed –effects method is selected as random effect model is rejected based on Hausman test result. The results of fixed effect show that export and infrastructure variables ate positive and statistically significant. With regard to policy, variable mixed results were obtained. As a policy recommendation the study, suggest that proper absorptive capacity such as deep financial institution, good infrastructure quality and supplementing public expenditures should be met in order to maximize the benefits of exports. JEL: C33; O11; F10; O19; O47 <p> </p><p><strong> Article visualizations:</strong></p><p><img src="/-counters-/edu_01/0875/a.php" alt="Hit counter" /></p>

Nexus of Renewable Energy Consumption, Economic Growth, Population Growth, FDI, and Environmental Degradation in South Asian Countries: New Evidence from Driscoll-Kraay Standard Error Approach

2021 ◽  
Vol 3 (2) ◽  
pp. 200-211
Author(s):  
Ansar Abbas Shah ◽  
Muhammad Sajjad Hussain ◽  
Muhammad Atif Nawaz ◽  
Mazhar Iqbal
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Population Growth ◽  
South Asian ◽  
Environmental Degradation ◽  
Asian Countries ◽  
Renewable Energy Consumption ◽  
Cross Sectional ◽  
Cross Sectional Dependence

Environmental degradation is the most prominent area nowadays, especially in developing counties where high renewable energy consumption and population growth deteriorate the atmosphere of the country. Thus, the current study investigates the nexus among renewable energy consumption, economic growth (EG), population growth, foreign direct investment (FDI), and environmental degradation in South Asian countries. The covariance matrix estimators that are developed by “Driscoll and Kraay” are used in this study. The primary property of this estimator is that it does not account for the cross-sectional dependence; thus, it provides substantial, robust outcomes among the cross-sectional units while in the presence of cross-sectional dependence. The data was collected from the World Development Indicators (WDI) from 2001 to 2019. The findings exposed that positive nexus among the population growth, FDI, and environmental degradation while renewable energy consumption and EG has negative nexus with environmental degradation and also not supported the EKC hypothesis in South Asian countries. These findings suggested that the regulators should develop policies that reduce environmental degradation in the presence of high EG, energy consumption, FDI, and population growth.

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