Energy consumption, pollution and economic development in 16 emerging countries

Abstract

Purpose – This study aims to investigate the impact of total primary energy consumption and CO2 emissions on the economic development in 16 emerging countries. Design/methodology/approach – The panel model was used taking the period 1980-2008. Findings – The results showed that a long-run relationship is present between total primary energy consumption, CO2 emission, and economic development in the countries under investigation. It was also found that both total primary energy consumption have a positive causal relationship with the economic development and other economic aspects playing an important role in achieving high economic performance with the consequence of higher pollution. Practical implications – The main recommendation of this study is to increase their investment and government spending on green energy projects to increase the share of green energy out of their total energy consumption. This can be considered a good solution for their energy woes. Originality/value – Different from the previous studies, it was also found that total primary energy consumption have a positive causal relationship with the economic development and other economic aspects playing an important role in achieving high economic performance with the consequence of higher pollution. In addition, there are a number of countries that had not investigated before.