Carbon emissions, diverse energy usage and economic growth in south africa: Investigating existence of the environmental kuznets curve (EKC)

Abstract

This article examined the relationships involving carbon emissions, economic growth and energy consumption by employing the environmental Kuznets curve (EKC) in South Africa from 1980 to 2014. The auto regressive distributed lag approach and Johansen cointegration tests proved that the variables are cointegrated. The article findings show that combined (total energy consumption) and hydrocarbon gas and petroleum consumption demonstrates evidence of EKC in the long‐run. Other separated data (primary coal, secondary coal, and electricity consumption) show no evidence of the EKC in the long‐run. Primary coal, secondary coal, electricity and hydrocarbon gas consumption develop positive and statistically significant relationships with carbon emissions in the long‐run but the case of total energy and petroleum consumption was negative and statistically significant. The short‐run results illustrate that combined (total energy consumption) and hydrocarbon gas consumption indicate evidence of EKC. Other separated data (primary coal, secondary coal, electricity, and petroleum consumption) show no evidence of the EKC in the short‐run. Short‐run results also indicated that total energy, primary coal, secondary coal, and electricity consumption report positive and statistically significant relationship with carbon emissions but hydrocarbon gas and petroleum consumption indicate positive but insignificant associations. Granger causality test based on vector error correction method (VECM) are also presented to ascertain causality. © 2018 American Institute of Chemical Engineers Environ Prog, 38: 30–46, 2019 Highlights The EKC hypothesis was examined in South Africa by employing energy combined and separated data. The EKC is supported in energy combined data in both short and long‐run but varies in separated data. Primary coal, secondary coal, electricity and hydrocarbon gas consumption develop positive and statistically significant relationships with carbon emissions in the long‐run. Total energy and petroleum consumption generate negative and statistically significant associations with carbon emissions in the long‐run. Total energy, primary coal, secondary coal and electricity show positive and statistically significant relationship with carbon emissions in the short‐run. Hydrocarbon gas and petroleum consumption indicate positive but insignificant association with carbon emissions in the short‐run. Granger causality tests based on VECM are also discussed.