Asymmetric impact of energy consumption on environmental degradation: evidence from Australia, China, and USA.

Abstract

The goal of this study is to examine the asymmetric impact of disaggregate energy consumption, i.e., oil, gas, coal, and electricity consumption on environmental degradation in Australia, China, and USA. The study uses annual time series data of three courtiers, i.e., Australia, China, and USA from 1975 to 2018 and applies nonlinear ARDL (NARDL) model to examine the long run and short run relationship. Results show that an increase in oil and coal consumption in Australia; oil, gas, and electricity consumption in China; and oil, coal, and gas consumption in USA leads to increase in the carbon dioxide emissions in the long run. However, a decrease in oil, gas, and electricity consumption in Australia; oil and electricity consumption in China; and coal, gas, and electricity consumption in USA reduces carbon dioxide emissions in the long run. Research and development centers are required to control pollution through new technologies, while to reduce emissions use renewable energy resources as a source of energy.