Abstract
In this paper, we examine the causal relationship between diesel consumption, CO2 emissions and GDP in Cameroon during the period 1975-2008. Cointegration and vector error-correction modelling techniques are used in this study. ADF tests show that the series, after logarithmic transformation, are non-stationary and integrated of order one.This study finds the presence of a long-run equilibrium relationship between the variables. The results of the Granger-causality tests for time series have been estimated.
Highlights
According to Ghosh [1] and Omri [2], there have been three streams of research to investigate the causal relationship between carbon dioxide emissions, energy consumption and economic growth
The results of the Augmented Dickey-Fuller (ADF) tests on the integration properties of the CO2 emissions, diesel consumption and GDP for Cameroon indicate that the series are stationary in first difference
The cointegration analysis is typically applied to verify if there exists a long run relationship between the variables
Summary
According to Ghosh [1] and Omri [2], there have been three streams of research to investigate the causal relationship between carbon dioxide emissions, energy consumption and economic growth. Investigating the causal relationship between economic growth and environmental pollutants constitutes the first stream of research. Researchers study the existence of environmental Kuznets curve [3] [4]. The causal relationship between energy consumption and economic growth is the second stream of research. Starting with the work of Kraft and Kraft [5], a number of studies examine the causal relationship between energy consumption and economic growth [6] [7]. The last stream of research has emerged in the recent literature, which combines two approaches earlier by examining dynamic relationship between CO2 emis-
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