Energy consumption, carbon emissions and economic growth: An empirical analysis of China

Energy consumption, carbon emissions, and economic growth in China

This research thesis investigates the effects of the short run and long run causal link (Granger causality relationship) between energy consumption, economic growth and carbon emissions in Nigeria (using Nigerian data over the period 1980 – 2009) including labor, investment in gross fixed capital formation, trade openness, total expenditure on education and labor force in the model. The Augmented Dickey Fuller (ADF) and Philip Perron (PP) Test were employed to examine the stationary state of the data while the Johansen co-integration test was employed to determine if there exist a long run relationship among the variables before estimating the model. The stationary test results indicate that none of the variables are stationary at levels in both tests while the cointegration results indicate that there are four co-integrating equations associated with our variables. Furthermore, applying the techniques of VECM version of Granger causality to find whether there exist a bi-directional or uni-directional causality between energy consumption, economic growth and carbon emissions in the short and long run. The statistical findings indicate that a neutral hypothesis holds in the short run (economic growth and energy consumption and carbon emissions are not related) and a bi-causal relationship holds in the long run between economic growth and energy consumption. This result does not suggest the existence of an EKC hypothesis in the long run, however, the standard polynomial functions (linear, quadratic and cubic) were estimated to confirm the existence of the EKC (‘U’) curve or ‘N’ shape curve and to find the main driving forces affecting carbon emissions patterns and the relationship between economic growth and carbon emissions. After conducting further diagnostic tests (ARCH test, normality test of residual term, white heteroscedasticity and model specification test- ramsey reset test) to determine the correctness of the specification of our model or robustness of our model, the emerging results prove that none of the variables influences carbon emissions in the long run including GDP and thus no EKC (‘U’) curve or ‘N’ shape curve was obtained. Therefore, the conclusion from our study is that although in the short run no causality is found between economic growth, energy consumption and carbon emissions, there is a strongly interdependent relationship between economic growth and energy consumption in the long run. Hence, proper environmental and energy policy should be adopted at appropriate time to protect natural capital (environment) which may control the vulnerability of climate change.

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.

Under the current climate change and economic fluctuations, studying the relationship between economic growth, energy consumption and carbon emissions has become a vital issue for the high-quality economic development of various countries. This paper selects the provincial data from 2004 to 2019, and constructs a dynamic simultaneous equation system. Based on the analysis of the impact of economic growth and energy consumption on carbon emissions, the system GMM estimation is used to empirically test the dynamic relationship between the three and analyze it. The heterogeneity of the relationship at the regional level was analyzed, and then a fixed-effects model was used to test the robustness. The results show that: (1) Under the full sample, energy consumption drives the increase of carbon emissions, and economic growth and industrial upgrading are conducive to realizing carbon emission reduction goals. (2) There is a two-way causal relationship between energy consumption and carbon emissions. (3) There is a two-way relationship between energy consumption, economic growth, and carbon emission in the middle and eastern regions. The economic growth in eastern China drives the increase in carbon emissions. In the central region, carbon emission has a certain restraint effect on economic growth. The model has a certain stability, and provides a useful reference for the coordinated development of China's economic growth, energy consumption, and carbon emissions.

In today's highly advanced industrialised and modernised world, China's economy is still growing, and its demand for energy is increasing daily. It is crucial to examine the connection between energy consumption, carbon emissions, and economic growth in order to promote economic growth based on energy conservation and emission reduction. Using Dezhou City in Shandong Province as an example, the study builds a VAR model of carbon emission, energy consumption, and economic growth in Dezhou City based on simplified macroeconomic sub-models, energy sub-models, and environmental sub-models. It then determines the correlation and influence mechanism between the three using tests like ADF unit root and Granger causality. The pertinent elements affecting Dezhou's carbon emissions were then investigated using grey correlation analysis. Finally, based on the study's findings, policy suggestions are made regarding energy use, carbon emissions, and economic expansion. It is necessary not only to restrain high-energy consumption industries and fundamentally optimize the energy consumption structure, but also to find new economic growth points and improve economic growth channels, so as to optimize the industrial structure. In this process, increasing the proportion of the tertiary industry is a key measure. In addition, the government needs to advocate the citizens to adopt a low-carbon lifestyle, and the concept of low-carbon environmental protection will be deeply rooted in the hearts of the people. This study will provide suggestions and theoretical guidance for China's energy consumption and carbon emissions, and help achieve high-quality growth of China and even the world economy.

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.

One of the primary difficulties we have recently is environmental degradation. The deterioration of the environment was visible in the rise in carbon dioxide emissions, which has a detrimental impact on various life matters. A variety of factors caused this growth. Inappropriate human behaviors caused the majority of them. This study aimed to ascertain how energy consumption and economic growth with its components in the Czech Republic, affected CO2 emissions. The relationship between CO2 emissions, economic growth, agriculture, and energy consumption was studied using econometric analysis, specifically the Johansen, Vector Error Correction (VEC) Model, and granger causality. The findings revealed that all variables are cointegrated. Economic growth, agricultural, and energy consumption output are all positively correlated with CO2 emissions. There is a unidirectional Granger Causality between economic growth, and Agriculture towards carbon dioxide emissions. A unidirectional Granger Causality agriculture towards economic growth, and energy consumption. In addition, there is no Granger Causality between energy consumption and CO2 emissions, and economic growth. This is the first study to use the most recent data to empirically evaluate the environmental impact of economic growth and energy use in the Czech Republic. This study includes pertinent advice for reducing emission ns and supporting the environment by increasing renewable energy sources and adhering to the Czech Ministry of Environment’s strategy.

This paper studies the relationships between economic growth, energy consumption and carbon dioxide emissions using an autoregressive distributed lag (ARDL) procedure and Engle-Granger causality test in China over the period 1965-2011. The empirical results show that GDP, energy and carbon emissions have appeared to be cointegrated. Moreover, there exists unidirectional causality from energy consumption to economic growth and carbon emissions to economic growth in short run. It has also been found that energy consumption and carbon emissions promote economic growth in long run. Some policy implications have been proposed finally.

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

The study aims to examine the survey of earlier literature that deals with economic growth, energy consumption and carbon emission, both single country studies as well as multi-county studies that covers the period till 2019. The main focus of this survey is on the coverage of countries, modeling methodologies, periods as well as empirical conclusions. The literature survey in this research paper is based on the causality’s direction between (i) economic growth and carbon emission; (ii) economic growth and energy consumption; (iii) energy consumption and carbon emissions. From reviewing these studies, general remark can be assumed that the literature which has been produced is paradoxical. Firstly, most of the earlier studies have reported that economic growth and energy consumption are significant sources of carbon emission, however, the role of economic growth in carbon emission is highly reported in highly developing countries. On contrary, in case of developed countries, carbon emission is not linked with economic development. Secondly, in case of developing countries, higher energy consumption leads to increase the economic growth. For developed countries, there are less evidence of dependence between energy consumption and economic growth. Lastly, in both developing and developed countries, higher energy consumption has reported the main culprit for carbon emission Focusing on the implications, the governments and industries have to replace the non-renewable energy sources with renewable sources to generate electricity, run the industrial operations and for transportation purposes etc. Comprehending the literature survey has provided the basis to address the designing as well as implementing effective environmental as well as energy policies.

The paper researches the relationship between transport economical growth, energy consumption and carbon emissions in China during 2000-2009 with the related theory and measurement model on decoupling and coupling. The results show that the follow-up emphasis of work is to further improve the technology of transport energy efficiency, focus on optimizing traffic mode and energy structure as well as improving the energy production structure and energy consumption structure.

In order to study the relationship between transportation carbon emissions and economic growth, driving factors of carbon emissions, we established elastic decoupling model and LMDI decomposition analysis model of transport sector. Taking Beijing Tianjin Hebei region as an example, the empirical study was carried out.Results showed that Tianjin and Hebei were in weak decoupling state, Beijing was in expanded negative decoupling state. And the transportation output scale effect in Beijing, Tianjin and Hebei was the main factor to boost the growth of carbon emissions.Energy intensity effect has led to the reduction of carbon emissions in the transport sector in Tianjin and Hebei, but has led to the increase of transport carbon emissions in Beijing.In terms of the energy structure effect, the transportation energy structure effect of Beijing, Tianjin and Hebei have weak positive contributions or negative contribution to the overall of carbon emissions.

This paper aims to investigate the direction of causality between economic growth, energy consumption and trade openness in case of Iran for the period 1967–2012. We apply the newly developed combined cointegration test proposed by Bayer and Hanck (2013). Vector Error Correction Model (VECM) is applied to determine the direction of causality between these three variables. The result of Bayer-Hanck cointegration test reveals the existence of cointegration between variables. The causality analysis indicates just a unidirectional causality from energy consumption to trade openness in short run. The long run causality test explores the bidirectional causality between economic growth and energy consumption, and between openness and energy consumption as well as unidirectional Granger causality from openness to economic growth. In addition, we used variance decomposition method and impulse response functions to show the dynamics of these relationships that confirmed low energy efficiency. This paper provides policy makers with insights to design policies for economic growth with a view to energy consumption and trade.

This study examines the causal relationship between energy consumption, carbon emission, trade openness, and economic growth and how the first three variables affects economic growth. Using data ranged from 1966 to 2023 from Indonesia, a vector error correction model and granger causality test is used to help analyze the data. Despite the expectations from exogenous growth theory and environmental Kuznets curve theory, the results reveal limited causality. Results shows that theres a causality from carbon emission towards economic growth and a bidirectional causality from energy consumption and economic growth with a long run effect from energy consumption, carbon emission, and trade openness towards economic growth. These findings suggest that that economic activities are reactive to environmental and energy trends. Policy implications include the need for integrated energy and environmental planning while recognizing the limited short-term impact of trade openness on economic growth dynamics in Indonesia.

Economic development leads to the widespread use of energy, which results in carbon emissions. In order to determine the correlation between different urban carbon emissions and fiscal growth, a coupling and coordination model of urban carbon emissions and economic growth based on discrete Fourier transform (DFT) is constructed. According to the coupling and coordinated development characteristics of economic growth and carbon emissions, the evaluation index system of the regional economy and carbon emissions is constructed. This paper examines the proportion of primary energy consumption and the influencing factors of carbon emission in a city and constructs the economic growth computational intelligence model and urban carbon emission model. The coupling degree among economic growth, carbon emission, and energy consumption is studied; the coupling standard between economic growth and energy consumption carbon emission is determined; and the carbon emission factor under the method of DFT is introduced. The coupling coordination model between economic growth and carbon emission is constructed, and the interaction mechanism between carbon emission, economic development, and environmental protection is determined. The experimental findings demonstrate that when energy consumption intensity and carbon emission are relatively low, the model’s change in the trend of coupling coordination index is comparable with the real/actual condition and the model is more reliable.