Carbon emissions, energy consumption, trade openness and economic growth in 12 Asia-Pacific economies: evidence from panel co-integration results

This article analyses the relationships among carbon emissions, energy consumption, trade and economic growth in 12 Asia-Pacific economies. The results indicate the existence of four long-run equilibrium relationships among carbon emissions, energy consumption, trade and economic growth. These four variables are causally related to each other. The inverted-U environment Kuznets hypothesis is supported. The long-run elasticity of carbon emissions with respect to trade and energy consumption were 0.21 and 1.13, respectively. Furthermore, the empirical evidence from a dynamic panel error-correction model revealed two short-run unidirectional causalities: from trade to energy consumption and from energy consumption to GDP growth. The short-run results also showed two bidirectional causal relationships between energy consumption and carbon emissions and between economic growth and carbon emissions. These results suggest that Asia-Pacific economies undertake energy policy to reduce carbon emissions by increasing the energy efficiency and substantially increasing the share of renewable energy in the overall energy usage.

The paper explores the nexus between energy consumption (oil and electricity) and economic growth in the five SAARC countries over the period 1970-2006. Using cointegration and Error Correction Model (ECM), the paper finds a unidirectional short run and long run causality from oil consumption to economic growth in Bangladesh and Nepal, a unidirectional short run and long run causality from electricity consumption to economic growth in Pakistan and Sri Lanka, a unidirectional short run and long run causality from economic growth to oil consumption in India and Sri Lanka, and a unidirectional causality from economic growth to electricity consumption in India and Nepal. It also finds the bidirectional causality between electricity consumption and economic growth in Bangladesh and between oil consumption and economic growth in Pakistan. The paper at the end suggests that energy and environmental policies should recognize the differences in the energy consumption-growth nexus in order to maintain sustainable economic growth in the region.

Purpose The purpose of this paper is to empirically examine the long run and causal relationship between energy consumption, carbon emissions and economic growth in India over the period 1971-2009 within multivariate framework. Design/methodology/approach The study uses the Johansen cointegration test to examine the possible long-run equilibrium relationship followed by Granger causality test based on vector error correction model to explore short- and long-run causality between energy consumption, carbon emissions and economic growth in India. Findings Cointegration result indicates the long-run equilibrium relationship between economic growth, energy consumption and carbon emissions. Further causality results suggest unidirectional causality running from energy consumption and carbon emissions to economic growth in long run, energy consumption to carbon emissions, carbon emissions to economic growth and economic growth to energy consumption in short run. Practical implications There is urgent need of policy development toward boosting energy efficiency, developing alternative carbon-free energy sources like nuclear, renewables and expansion of affordable energy for faster, sustainable and more inclusive growth for India in upcoming years. Originality/value India, an energy-dependent economy needs to effectively implement energy efficiency measures, super critical technologies in power plants, and investment in renewable energy resources in order to minimize the dependence on fossil fuels and carbon emissions for faster, more inclusive and sustainable growth.

This paper applies Pedroni's panel cointegration approach to explore the causal relationship between trade openness, carbon dioxide emissions, energy consumption, and economic growth for the panel of newly industrialized economies (i.e., Brazil, India, China, and South Africa) over the period of 1970-2013. Our panel cointegration estimation results found majority of the variables cointegrated and confirm the long-run association among the variables. The Granger causality test indicates bidirectional causality between carbon dioxide emissions and energy consumption. A unidirectional causality is found running from trade openness to carbon dioxide emission and energy consumption and economic growth to carbon dioxide emissions. The results of causality analysis suggest that the trade liberalization in newly industrialized economies induces higher energy consumption and carbon dioxide emissions. Furthermore, the causality results are checked using an innovative accounting approach which includes forecast-error variance decomposition test and impulse response function. The long-run coefficients are estimated using fully modified ordinary least square (FMOLS) method, and results conclude that the trade openness and economic growth reduce carbon dioxide emissions in the long run. The results of FMOLS test sound the existence of environmental Kuznets curve hypothesis. It means that trade liberalization induces carbon dioxide emission with increased national output, but it offsets that impact in the long run with reduced level of carbon dioxide emissions.

This article examines the short- and long-run association among carbon emissions, energy consumption and economic growth through deploying the environmental Kuznets curve (EKC) using combined (aggregated) and separated (disaggregated) energy consumption data for Zimbabwe from 1980 to 2014. The ARDL bounds tests and Johansen cointegration tests found long-run relationships among the variables. In the long-run, total energy consumption and primary coal consumption produce statistically significant positive relationships with carbon emissions. However, petroleum consumption demonstrates a statistically significant negative association with carbon emissions. The results show the validity of the EKC in total energy and primary coal consumption in the long-run but are invalid for petroleum consumption. In the short run, the findings reveal that total energy, primary coal and petroleum consumption have statistically significant positive relationships with carbon emissions. Furthermore, in the short run, the EKC is evident in petroleum consumption but invalid in both total energy and primary coal consumption. The short- and long-run Granger causality tests results based on the VECM are also discussed. The article concludes that, if carbon emissions are to be reduced in developing economies, alternative energy sources in the form of green technologies should be adopted as substitutes for coal and petroleum.

This article examines the short- and long-run association among carbon emissions, energy consumption and economic growth through deploying the environmental Kuznets curve (EKC) using combined (aggregated) and separated (disaggregated) energy consumption data for Zimbabwe from 1980 to 2014. The ARDL bounds tests and Johansen cointegration tests found long-run relationships among the variables. In the long-run, total energy consumption and primary coal consumption produce statistically significant positive relationships with carbon emissions. However, petroleum consumption demonstrates a statistically significant negative association with carbon emissions. The results show the validity of the EKC in total energy and primary coal consumption in the long-run but are invalid for petroleum consumption. In the short run, the findings reveal that total energy, primary coal and petroleum consumption have statistically significant positive relationships with carbon emissions. Furthermore, in the short run, the EKC is evident in petroleum consumption but invalid in both total energy and primary coal consumption. The short- and long-run Granger causality tests results based on the VECM are also discussed. The article concludes that, if carbon emissions are to be reduced in developing economies, alternative energy sources in the form of green technologies should be adopted as substitutes for coal and petroleum.

Based on the data from 1978-2010, this paper analyzes the causal relationships between carbon emissions, energy consumption, and economic growth in Shanghai, adopting the co-integration and vector error correction methods. The Grey prediction model is applied to forecast three variables for the period between 2011 and 2020. As the empirical results showed, in the long-run equilibrium, there is a positive relationship of a long-term equilibrium between carbon emission and energy consumption in Shanghai. However, between carbon emission and real GDP, there is a negative correlation. Besides, in the short-run equilibrium, energy consumption is the important impact on carbon emission. The causality results show that there is a bidirectional causality relationship between carbon emission, real GDP and energy consumption. For the purposes of reducing carbon emissions and not adversely affecting economic growth, Shanghai should optimize the structure of energy consumption and develop new energy. In addition, the optimal forecasting models of real GDP, energy consumption and carbon emissions have good prediction precision with MAPEs of less than 3%.

Purpose – The purpose of this paper is to empirically examine the relationship between energy consumption, carbon emissions and economic growth for a panel of five South Asian economies namely India, Pakistan, Bangladesh, Sri Lanka and Nepal over the period 1972-2009 within multivariate framework. Design/methodology/approach – The study uses Pedroni cointegration and Granger causality test based on panel vector error correction model to examine long-run equilibrium relationship and direction of causation in short run and long run between energy consumption, carbon emissions and economic growth in South Asia. Findings – Cointegration result indicates the long-run equilibrium relationship between economic growth, energy consumption and carbon emissions for panel. Causality results suggest that bidirectional causality exist between energy consumption-GDP, and unidirectional causality from carbon emissions to GDP and energy consumption in long run. However, energy consumption causes carbon emissions in short run. Practical implications – Implementing energy efficiency measures and reducing dependence on fossils fuels by scaling up carbon free energy resources like nuclear, renewables including hydropower in energy mix is necessary for sustainable and inclusive growth in the region. Originality/value – South Asia economies need to sacrifice economic growth for reducing the carbon emissions in long run if the region dependence on fossils fuels including coal, oil and natural gas in energy mix continues at same pace.

Carbon emissions, energy consumption and economic growth: Evidence from the agricultural sector of China's main grain-producing areas

This study investigates the dynamic relationships between carbon emission, urbanization, energy consumption, and economic growth in a panel of 42 Asian countries for the period 2000–2014 using dynamic common correlated effects panel data modeling. This study employs second generation cross-sectional Pesaran (J. Appl. Econom., 2007, 22(2), 265-312) panel unit root, Westerlund panel cointegration tests (Econom. Stat., 2007, 69(6), 709-748), and Pesaran’s (Econometrica, 2006, 74(4), 967-1012) common correlated effects mean group estimation technique. These approaches allow for cross-sectional dependence, and are robust to the presence of common factors, serial correlation, and slope heterogeneity. The Common Correlated Effect Mean Group test reveals a high average coefficient of 0.602 between carbon emission and energy consumption while low coefficients of 0.114 and 0.184 for the pairs of carbon emission-urbanization and carbon emission-GDP, respectively for the panel as a whole, suggesting a cointegration between carbon emission, urbanization, energy consumption, and economic growth. The results indicate that there is relatively high carbon emission especially for highly populated and geopolitical risk Asian countries in the short run. Findings reveal long run relationships between the variables, which is attributed to the on-going carbon taxation and energy prices. Our results are robust to PMG-ARDL estimator. Overall, these findings cast important implications on renewable energy policy and urban planning insights for the policymakers.

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.

In 2021, the Chinese government announced the goal and vision of carbon peak and carbon neutralization. The proposal of "double carbon strategy" has an important impact on China’s economic development. In this context, in order to accelerate the green development of Liaoning economy and realize the decoupling between economic growth and carbon emission. Taking Liaoning Province as the research object, this paper uses Granger causality test to analyze the relationship between energy consumption, carbon emission and economic growth, and uses Tapio decoupling analysis method to study the change of decoupling state between carbon emission and economic growth from 2010 to 2019. It is found that there is a two-way Granger causality between carbon emission, energy consumption and economic growth. At the same time, the decoupling analysis shows that the decoupling of carbon emission in Liaoning Province is more significant, and the carbon emission intensity of economy has decreased. Finally, it puts forward countermeasures and suggestions that Liaoning Province should optimize the industrial structure and speed up the application of clean energy.

Fossil energy is the material basis of human survival, economic development and social progress. The relationship between energy consumption and economic growth is becoming increasingly close. However, energy consumption is the major source of greenhouse gases, which can significantly affect the balance of the global ecosystem. It has become the common goal of countries worldwide to address climate change, reduce carbon dioxide emissions, and implement sustainable development strategies. In this study, we applied an approximate relationship analysis, a decoupling relationship analysis, and a trend analysis to explore the relationship between energy consumption and economic growth using data from Kazakhstan for the period of 1993–2010. The results demonstrated: (1) the total energy consumption and GDP in Kazakhstan showed a ”U”-type curve from 1993 to 2010. This curve was observed because 1993–1999 was a period during which Kazakhstan transitioned from a republic to an independent country and experienced a difficult transition from a planned to a market economy. Then, the economic system became more stable and the industrial production increased rapidly because of the effective financial, monetary and industrial policy support from 2000 to 2010. (2) The relationships between energy consumption and carbon emissions, economic growth and energy exports were linked; the carbon emissions were mainly derived from energy consumption, and the dependence of economic growth on energy exports gradually increased from 1993 to 2010. Before 2000, the relationship between energy consumption and economic growth was in a recessional decoupling state because of the economic recession. After 2000, this relationship was in strong and weak decoupling states because the international crude oil prices rose and energy exports increased greatly year by year. (3) It is forecasted that Kazakhstan cannot achieve its goal of energy consumption by 2020. Therefore, a low-carbon economy is the best strategic choice to address climate change from a global perspective in Kazakhstan. Thus, we proposed strategies including the improvement of the energy consumption structure, the development of new energy and renewable energy, the use of cleaner production technologies, the adjustment and optimization of the industrial structure, and the expansion of forest areas.

CO2 emissions, economic growth, energy consumption, trade and urbanization in new EU member and candidate countries: A panel data analysis

Carbon emissions, energy consumption and economic growth: An aggregate and disaggregate analysis of the Indian economy