AN INVESTIGATION OF THE CAUSAL RELATIONSHIP BETWEEN ENERGY CONSUMPTION AND ECONOMIC GROWTH: A CASE STUDY OF VIETNAM

The study aims to test the long-run cointegration relationship and causality among China’s carbon emissions, economic growth, energy consumption and trade openness for the period 1971–2013. Autoregressive Distributed Lag (ARDL) model incorporating with structural breaks and Vector Error Correction Model (VECM) Granger causality test are applied in this study. The empirical results reveal that inverted-U shape relationship exists between carbon emissions and economic growth in the long-run, but it doesn’t hold in short-run, proving that Environmental Kuznets Curve (EKC) is a long-run phenomenon rather than short-run. Moreover, energy consumption and trade openness are found to have positive impacts on carbon emissions in the long-run and short-run. As for causality test the result showed that bi-directional causal relationship exists between energy consumption and carbon emissions in the long-run. In the short-run, unidirectional causality is found running from trade openness to carbon emissions.

The causal nexus between economic growth and energy consumption: New evidence from global panel of 53 countries

With its increasing population and growing economy, Türkiye's demand for energy consumption is increasing rapidly. This study contributes to the energy-economic growth literature by examining the relationship between real gross domestic product and electricity consumption by adding the determinants of the production function in Türkiye, such as labor and capital, and using annual data for the period 1988-2019. Autoregressive Distributed Lag Bounds Test, Error Correction Mechanism and Granger Causality Test were used to evaluate the relationship between energy consumption (EC), economic growth (EG), labor, and capital in the long and short term. The results show that there is a cointegration relationship between EG and EC. The error correction coefficient is significant, and a short-term deviation recovers within a period of 2.5 years and reaches the long-term balance. Moreover, a causal relationship from EC to EG was determined. This reveals that EC plays an important role in Türkiye's EG paradigm and supports the growth hypothesis. It is suggested that policies should prioritize increasing energy investments in Türkiye in order to promote stable economic growth.

This study plays its role in the literature by investigating the impact of energy consumption on agriculture sector, and environmental cleanliness on Gross Domestic Product, in five South Asian countries from the period of 1990 to 2015. Energy is now becoming a challenge for the South Asian countries especially country like Pakistan. Developing countries are in a race to gather more and more resource for the production of energy. The main objective of research is to examine the short-run and long-run relationship between economic growth and energy consumption on agriculture sector of economy in South Asian countries. Granger causality test and Error correction model is employed to get the results. The empirical results showed the presence of co-integration among the variables and it indicates gross domestic product has a positive relationship with energy consumption in agriculture sector and environmental cleanliness. Granger causality results showed that unidirectional causality is present between gross domestic product and agricultural sector while no causality is present among environment cleanliness.

Energy for economic growth, industrialization, environment and natural resources: Living with just enough

There has been growing interest in studying the relationship between energy strategies (energy efficiency and energy diversity) and economic growth to achieve the low-carbon economy goals in recent years. However, the available empirical evidence is scarce and provides contradictory results, limiting the policy implications of the existing findings. Therefore, this study aims to comprehensively examine the possible nexus between low-carbon energy strategies and economic growth for developed and developing economies. The empirical approach involves exploring the Granger causal relationships using a panel Granger (non) causality test and estimating the long-run effects by employing a panel autoregressive distributed lag modeling framework. The dataset covers panels of developed (28 countries) and developing (34 countries) economies over the period 1990-2017. Estimated results from the causality test reveal that in the economic growth-energy efficiency nexus, a unidirectional Granger causality exists for developed economies (running from economic growth to energy efficiency). In contrast, a bidirectional Granger causality is evident for developing economies. In the economic growth-energy diversity nexus, only unidirectional Granger causality exists for developed (running from economic growth to energy diversity) and developing (from energy diversity to economic growth) economies. The long-run coefficient estimates show that energy efficiency promotes economic growth for both developed and developing economies, but energy diversity promotes economic growth only for developing economies. Economic growth discourages energy efficiency for developed economies but encourages energy efficiency for developing economies. However, economic growth promotes energy diversity for both developed and developing economies. The findings of this study suggest that there is an immediate need to mitigate the adverse effect of economic growth on energy efficiency by focusing more on energy-savings behavior and practices for developed economies. Moreover, energy efficiency and energy diversity can be considered an alternate strategy to achieve higher economic growth with low carbon emissions for developing economies.

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.

This paper aims to investigate the direction of causality between economic growth, energy consumption and trade openness in case of Iran for the period 1967–2012. We apply the newly developed combined cointegration test proposed by Bayer and Hanck (2013). Vector Error Correction Model (VECM) is applied to determine the direction of causality between these three variables. The result of Bayer-Hanck cointegration test reveals the existence of cointegration between variables. The causality analysis indicates just a unidirectional causality from energy consumption to trade openness in short run. The long run causality test explores the bidirectional causality between economic growth and energy consumption, and between openness and energy consumption as well as unidirectional Granger causality from openness to economic growth. In addition, we used variance decomposition method and impulse response functions to show the dynamics of these relationships that confirmed low energy efficiency. This paper provides policy makers with insights to design policies for economic growth with a view to energy consumption and trade.

Recent advances in time series analysis have permitted the investigation of the long-run and short-run relationship between export and economic growth in terms of co integration analysis and error correction mechanism. The paper empirically examines the relationship between export and economic growth in the short-run and long-run by using Indian data over the period, 1950-51 to 2000-2001. There is some evidence of co integration to establish a long-run relationship between export and economic growth found through Johansen and Johansen Juselius Co integration tests. Using the Granger Causality test we find empirical support for unidirectional Granger causality running from export to economic growth.

CO2, economic growth, and energy consumption in China's provinces: Investigating the spatiotemporal and econometric characteristics of China's CO2 emissions

Over the last 50years, urban population of Turkey has grown from 25 to 75%. Urbanization is highly linked with one of the most important global problems which is global warming through accelerating economic growth, energy consumption, and trade openness that are considered to be the main indicators of climate change in environmental literature. The main purpose of the present research is to examine the long-run effect of economic growth, energy consumption, trade openness, and urbanization on environmental degradation and causal link among the indicators under consideration in Turkey by taking into account the moderating role of urbanization over the period of 1960-2016. Aiming to establish robust findings, this study utilized both traditional and modern econometric techniques, including Bayer and Hanck cointegration, Gregory and Hansen cointegration, fully modified ordinary least squares (FMOLS) and dynamic ordinary least square (DOLS), Granger causality, Toda-Yamamoto causality, and Gradual Shift causality tests. The cointegration tests reveal that carbon dioxide (CO2) emissions and economic growth, energy consumption, trade openness, urbanization, and the moderating role of urbanization are cointegrated. The outcomes of the long-run estimators-FMOLS and DOLS-reveals that environmental Kuznets curve (EKC) hypothesis is valid and the existence of moderating role of urbanization on indicators of CO2 emissions is confirmed for the case of Turkey. Moreover, the causality tests mirror that while energy consumption, trade openness, and urbanization are important for predicting CO2 emissions, the moderating role of urbanization leads CO2 emissions in the short run.

This paper, based on 1978–2010 energy consumption and economic growth data, investigates the relationship between energy consumption and economic growth in Heilongjiang Province using co-integration and Granger causal test with vector error correction (VEC) model. The co-integration test reveals the long equilibrium relationship between economic growth and energy consumption in Heilongjiang and the long unidirectional causality from energy consumption to economic growth. The energy consumption promotes economic development in Heilongjiang Province. Finally, we give some suggestions on how to coordinated growth between economic growth and energy consumption in Heilongjiang Province .

This paper attempts to investigate the short-run and long-run relationship and causality between energy consumption and economic growth during 1960–2006 period for Turkey. Johansen and Juselius cointegration method and vector error correction model (VECM) have been employed to examine this issue. After finding cointegration among variables, a VECM is estimated and the Granger causality tests were carried out based on a VECM. The results have shown that there is no short-run causality in both energy consumption and GDP models. The results also confirmed that there is unidirectional long-run causality among variables of interest and the direction of long-run causality is running from per capita GDP to per capita energy consumption. As a result, conservation hypothesis which postulates unidirectional causality from economic growth to energy consumption is confirmed for Turkey. Taken together, these empirical findings involve valuable information for policy makers.

Investigating the multivariate Granger causality between energy consumption, economic growth and CO2 emissions in Ghana

This study explored the effect of energy consumption and economic growth on CO2 emissions. The relationship between energy consumption, economic growth and CO2 emissions was assessed using regression analysis (the pooled OLS regression and fixed effects methods), Granger causality and panel cointegration tests. Data from 70 countries between 1994–2013 were analysed. The result of the Granger causality tests revealed that the study variables (population, capital stock and economic growth) have a bi-directional causal relationship with CO2 emissions, while energy consumption has a uni-directional relationship. Likewise, the outcome of the cointegration tests established that a long-run relationship exists among the study variables (energy consumption and economic growth) with CO2 emissions. However, the pooled OLS and fixed methods both showed that energy consumption and economic growth have a significant positive impact on CO2 emissions. Hence, this study supports the need for a global transition to a low carbon economy primarily through climate finance, which refers to local, national, or transnational financing, that may be drawn from public, private and alternative sources of financing. This will help foster large-scale investments in clean energy, that are required to significantly reduce CO2 emissions.