Abstract
BackgroundInternational awareness of the impact of global warming and climate change is increasing. Developing countries face the task of achieving sustainable economic growth while also improving the efficiency of their energy consumption. The E7 countries (Brazil, India, Indonesia, Mexico, People’s Republic of China, Russia, and Turkey) are all highly concerned with the promotion of carbon-emission-reduction strategies.MethodsThis research uses a bootstrap autoregressive distributed lag (ARDL) bound test with structural breaks to examine the cointegration and causality relations between economic growth, energy consumption, and carbon dioxide (CO2) emissions in the E7 countries.ResultsThere is no cointegration between economic growth, energy consumption, and CO2 emissions for People’s Republic of China, Indonesia, Mexico, and Turkey. Evidence of cointegration is found for Brazil when CO2 emissions are the dependent variable and for India and Russia when energy consumption is the dependent variable. For all of the E7 countries except Indonesia, short-run Granger causality was found to exist from energy consumption to CO2 emissions and from economic growth to CO2 emissions for Brazil, India, Mexico, and People’s Republic of China. Short-run Granger causality was also found from economic growth to energy consumption for Brazil, India, Indonesia, Mexico, and People’s Republic of China, and from CO2 emissions to energy consumption for all E7 countries.ConclusionsThe results consistently show that energy consumption is the main cause of CO2 emissions, which has led to the emergence of global warming problems. Increases in CO2 emissions compel the E7 countries to develop sound policies on energy consumption and environmental pollution.
Highlights
International awareness of the impact of global warming and climate change is increasing
The KPSS test for Logarithm of per-capita GDP (LGDP) for the People’s Republic of China and the Logarithm of per-capita primary energy consumption (LEC) and Logarithm of per-capita CO2 emissions (LCO2) for Russia does reject the null hypothesis of stationarity
Increased demand for energy and the subsequent Carbon dioxide (CO2) pollution make both developed and developing countries vulnerable to the effects of global warming and climate change. This compels governments to create policies which aim to reduce CO2 emissions while concurrently creating new knowledge and expertise to supply the energy that is required for growth and development
Summary
International awareness of the impact of global warming and climate change is increasing. According to the 2018 report by British Petroleum (BP), CO2 emissions from energy consumption showed little or no growth in 2014–2016 but increased by 1.6% in 2017. It is necessary for all countries to play their part in balancing the need to supply the energy the world needs for growth and prosperity, with the reduction of CO2 emissions. Schmittmann, and Suntheim identified that sustainable economic growth reflects the increasing recognition of governments that climate change impacts on financial stability, resulting in urgent calls for research into the economic costs of CO2 emissions [12]
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