Analysis of asymmetries in the nexus among energy use, pollution emissions and real output in South Africa

Abstract

This study examines asymmetries in the nexus among energy use, pollution emissions and real output in South Africa using a nonlinear ARDL model advanced by Shin et al. [48]. The findings suggest the presence of asymmetries in the nexus among the indicated variables in the short and long run. Negative and positive shocks of the variables have different effects in sign and magnitude. The findings further show that both energy use and CO2 emissions affect real output; therefore caution is needed when advocating energy and environmental policies in South Africa, and the presence of asymmetries in the relationships among these variables should be taken into account. Further studies are needed to shed more light on asymmetries in the nexus among these important variables.