Energy consumption, carbon emissions and economic growth in India

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.

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.

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.

This study aims to examine the influence of energy trade, energy use, and carbon emission on economic growth for the period of 1970-2019, in regional cooperation of West African states. This study employed second generation techniques. The results revealed that energy trade increased economic growth in the long run. However, in short run energy trade reduced in economic growth. Besides, energy consumption impeded the economic growth in both short run and long run, while carbon emission increased the economic growth in both short run and long run. The energy crisis of 2014 decreased economic growth. Moreover, the result of interaction term of energy consumption and carbon emission showed positive influence on economic in both short run and long run. In addition, the results of causality showed uni-directional causal relationship from energy trade to economic growth. Policy recommendations can be made, in the sense that policies should be geared towards promoting renewable sustainable energy conservation policy that could possibly improve economic integration.Keywords: Economic Growth, Energy Trade, Regional Cooperation of West African States, Second Generation TechniquesJEL Classifications: F34, K32, O55, C01DOI: https://doi.org/10.32479/ijeep.11598

The paper explores the nexus between transport infrastructure (road and rail), energy consumption (oil and electricity) and economic growth in India over the period 1970-2007. Using cointegration and Granger causality test, the paper finds a unidirectional causality from transport infrastructure to economic growth, a unidirectional causality from economic growth to energy consumption and a unidirectional causality from transport infrastructure to energy consumption. The paper at the end suggests that energy and transportation policies should recognize the transport- energy consumption- growth nexus in order to maintain sustainable economic growth in the country.

Nuclear energy consumption, commercial energy consumption and economic growth in South Asia: Bootstrap panel causality test

This study attempts to explore the dynamic causal and inter-relationships among tourism, economic growth and energy consumption in India. This study covers the annual data from 1971 to 2012. This study applies the cointegration and generalised variance decomposition methods to verify the relationship. The bounds testing approach to cointegration and the Gregory–Hansen test for cointegration with structural break consistently reveal that energy consumption, tourism and economic growth in India are cointegrated. We find that tourism and economic growth strongly affects energy consumption in the long-run. Additionally, we also find that tourism and economic growth in India are inter-related, but the causal effect of tourism on economic growth is stronger than the other way around in both the short- and long-run. Therefore, this study concludes that the tourism-led growth hypothesis is valid but the energy-led growth hypothesis is invalid in India. With such findings, we can confirm that tourism is an important catalyst of growth to the Indian economy. Therefore, policy-makers should promote and expand tourism industry in order to sustain the process of economic growth and development in India.

Energy consumption, carbon emissions, and economic growth in India: Evidence from directed acyclic graphs

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.

This study attempts to investigate the long-run Granger causality relationship between energy consumption, carbon dioxide emission and economic growth in India over the period 1971-2007. The augmented Dickey– Fuller test (ADF), Phillips-Perron test (PP) and KPSS test are used to test for Granger causality in cointegration models which take account of the stochastic properties of the variables. The most important result is that there is feedback causal relationship between energy consumption and economic growth in India which implies that the level of economic activity and energy consumption mutually influence each other; a high level of economic growth leads to a high level of energy consumption and vice versa. The value of the error correction term confirms the expected convergence process in the long-run for carbon emissions and growth in India which

A study of the impact of military expenditures on economic growth and development examines the differences in the results of previous studies which led to contradictory conclusions. The authors find that these differences are due to sample variations, specificational choices, and the different time periods examined. The data indicate that there is no consistent, statistically significant connection between military spending and economic growth. Augmentation of the models suggests that military expenditures neither help nor hurt economic growth to any significant extent. 2 tables.

Energy efficiency potentially reduces global carbon emissions, whereas the need of emerging countries to maintain economic growth and development entails a sharp increase in energy consumption. However, to meet this, current energy systems need to be transformed. Several studies find different conclusions on the short-run and long-run relationship and the direction of causality, and none of the studies have considered energy efficiency in their model. This study investigates the direction of causality between energy efficiency, energy consumption, and economic growth in South Africa. To determine if a long-run relationship between the variables exists, the Johanson cointegration test is used, and the results indicate that there is a long-run relationship between economic growth, energy depletion, energy efficiency, non-renewable energy consumption, renewable energy consumption, and energy security, with trace statistics suggesting that the null hypothesis of no cointegration should be rejected at a 5% level of significance. The Toda and Yamamoto procedure of the Granger causality approach was then applied. This study finds a unidirectional causality between energy efficiency, non-renewable energy consumption, and economic growth and no causality between renewable energy consumption, energy depletion, energy security, and economic growth. The growth hypothesis is supported, while the neutrality hypothesis is only confirmed regarding renewable energy consumption and economic growth. The results further suggest that a unidirectional Granger causality exists between non-renewable consumption and energy efficiency, and economic growth in South Africa. In South Africa, energy efficiency is a significant tool to enhance sustainable growth and attain climate objectives. Also, energy efficiency helps to lower the costs of mitigating carbon emissions and further advance both social and economic development.

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

Energy consumption, carbon emissions and economic growth nexus in Bangladesh: Cointegration and dynamic causality analysis

ABSTRACTThis study attempts to investigate the long-run Granger causality relationship between energy consumption, carbon emissions, economic growth, and trade openness in Sri Lanka. Our analysis reveals that, there exists long-run causal relationship between carbon emission and economic growth for Sri Lanka over the period of 1971–2006. In addition, there is unidirectional causality running from economic growth to the carbon emission and energy consumption. The result implies that carbon emission reduction policies will hurt economic growth if no supplementary policies are taken to modify this causal relationship.