Environmental pollution, hydropower energy consumption and economic growth: Evidence from G7 countries

In both the theoretical and empirical levels, both at home and abroad, the research of the relativity between government debt and economic growth is still inconclusive. Combined with the practical situation of China, this article takes 31 provinces of our country from 1995 to 2014 and 18 (2005, 2013, rejecting) local government debt and economic growth data as samples. First, we conduct unit root test on two variables DEBT and GDP to ensure that data is stationary, and then, on this basis of unit root test, we conduct cointegration test to determine whether there is a long-term cointegration relationship between DEBT and GDP. Finally, on the basis of the first two steps, we conduct Granger causality test on DEBT and GDP. The results show that the local government debt and economic growth in China is the second order sequences that are of single integer. And there may not exist long-term cointegration relationship between DEBT and GDP. In the short term, the economic growth of local government is the Granger cause of local government debt, but the local government debt is not a Granger cause of economic growth of local government. In the medium term, the economic growth of local government is still the Granger cause of local government debt and its performance is more significant. However, local government debt is not the Granger cause of local government economic growth, but it is weaker than the short-term. In the long term, economic growth and government debt of local government exit Reciprocal causation relationship. According to 18 years real data of 31 provinces in China, we design empirical scheme and conduct Granger causality test in using econometric software Eviews 8. This is the possible innovation of this article.

This study aims to examine the dynamic relationship between carbon dioxide (CO2) emissions, renewable energy consumption, and economic growth in Denmark, Sweden, and Chile. These countries were not randomly selected. They were chosen since they have the highest scores according to the Climate Change Performance Index (2023). In addition, Markov-switching vector autoregressive (MS-VAR) and Markov-switching Granger (MS-Granger) causality methods are applied to the annual data of the three countries over the period 1971–2021. Contrary to linear methods, MS-VAR and MS-Granger causality approaches allow us to estimate and interpret this relationship for different regimes, such as recession and expansion. These methods also provide insights into the likelihood and duration of the persistence of the current economic regime. The empirical results show that there is a two-way MS-Granger causality between renewable energy consumption and economic growth in all regimes for the three countries except for moderate and high expansion regimes for Chile. Moreover, in general, there is a two-way MS-Granger causality between economic growth and CO2 emissions in all regimes. Furthermore, the findings from the estimated models indicate that there is a two-way MS-Granger causality between renewable energy consumption and CO2 emissions in general, except for the second regime for Chile.

Our industrialized world highly depends on fossil fuels to cover its energy needs. Although fossil fuels have been linked with economic growth, their use has also been found to have severe impacts on the environment. The linkages among carbon dioxide emissions, energy consumption and economic growth have been extensively examined in the current literature. The present study focuses on electricity production from fossil fuels, as well as from renewable sources and examines their linkages with CO2 emissions and economic growth in 119 world countries of different income levels, by assessing Granger causality. In addition, the Environmental Kuznets Curve (EKC) hypothesis is tested, in order to evaluate whether economic growth and carbon dioxide emissions are linked with an inverse U-shaped relationship and with an N-shape relationship in higher income levels. The EKC hypothesis is confirmed for high income and upper-middle income countries, but not for lower-middle and low income levels and a bidirectional Granger causality is found between GDP per capita and CO2 per capita in all income levels.

Over the past 40years since China's reform and opening up, the industrial structure has undergone tremendous changes. The rapid development of the economy has been accompanied by a surge in carbon emissions. How to achieve a win-win situation for economic growth and carbon emissions reduction has aroused widespread concern from all sectors of society. Here, this paper discusses the dynamic relationship of industrial structure upgrading, economic growth, and carbon emission reduction. Results show that there is a long-term equilibrium relationship among industrial structure upgrading, economic growth, and carbon emissions. In the short term, when the three variables deviate from the long-term equilibrium state, the non-equilibrium state will be pulled back to equilibrium with the adjustment strength of - 0.0633, - 0.0097, and 0.0013. Carbon emission reduction promotes industrial structure upgrading. Industrial structure upgrading has a greater positive impact on economic growth. Industrial structure upgrading and economic growth have a negative impact on carbon emissions, thereby promoting emission reduction. And at the 10% significance level, there is a one-way Granger causality from carbon emissions to industrial structure upgrading, economic growth can cause one-way changes in carbon emissions, and industrial structure upgrading is a one-way Granger cause of economic growth. Finally, several carbon emission reduction policies are proposed promote industrial restructuring and sustainable economic development.

Electricity consumption and economic growth nexus in Portugal using cointegration and causality approaches

This study estimates the causality relationship between electricity consumption and economic growth by Markov Switching VAR (MS‐VAR) method for some emerging countries: Argentina, China, India, Brazil, Mexico, Turkey and South Africa. Knowledge of the direction of causality between electricity consumption and economic growth is of primary importance if appropriate energy policies and energy conservation measures are to be devised. The results from MS‐VAR models show that in first, second and third regime, electricity consumption is the Granger cause of the economic growth and economic growth is the Granger cause of the electricity consumption. In sum, we found some evidence of bidirectional Granger causality between the electricity consumption and the economic growth.

The effects of environmental pollution and Industry 4.0 on a sustainable environment are the main topic of this study, which may be regarded as a complement to the literature on energy and the environment. The paper aims to investigate the relation between Industry 4.0 (I4.0) and environmental sustainability, which is very important for policymakers, practitioners, and company executives in the period of Industry 4.0 in Turkey. To this end, natural gas consumption and technology patents as control variables of Industry 4.0, in addition to the variables of environmental pollution and economic growth, were selected during the period of 1988 to 2022 using Markov switching VAR (MS-VAR), Markov switching Granger causality (MS-GC), Fourier VAR (FVAR), and Granger causality (FGC) techniques. The reason for covering the period starting in 1988 is its recognition as the beginning of the Industry 4.0 era with AutoIDLab in 1988. According to the causality results, there was unidirectional causality running from technology patents to environmental pollution in the results of both MS-GC and FGC. However, the directions of causality between natural gas consumption and environmental pollution, and between economic growth and environmental pollution differed between regimes in the MS-GC model. Bidirectional causality was determined between economic growth and environmental pollution in the first MS-GC regime. However, in the second regime, unidirectional causality from economic growth to environmental pollution was determined. The causality direction determined by Fourier causality gave the same result with the second regime. A similar finding was observed in the direction of causality between natural gas consumption and CO2 emissions. While MS-GC determined unidirectional causality from natural gas consumption to environmental pollution in the first regime, a bidirectional causality result between GC and environmental pollution was determined in the second regime. The FGC result was similar to the second regime result. And lastly, the MS-GC and FGC methods determined unidirectional causality from Industry 4.0 to environmental pollution.

The study focuses on the nonlinear Granger causality between cement production, economic growth and carbon dioxide emissions by Markov-switching vector autoregressive (MScVAR) and Markov-switching Granger causality approach for the period of 1960–2017 for China and the USA. The empirical findings from MSIA(2)-VAR(2) for the USA and MSIA(3)-VAR(3) for China suggest that cement production has an important impact on CO2 emissions and economic growth. Markov-switching causality approach determines the evidence of unidirectional causality running from cement production to carbon dioxide emissions in all regimes for the USA and China. The cement production is an important source of environmental pollution. The USA and China have global responsibility for cement production determined as one of the central sources of carbon dioxide emissions. Moreover, MS-Granger causality results were compared with ones determined by traditional causality method. It was determined that to employ traditional method instead of MS-causality method can cause wrong policy applications if the tested series has nonlinearity.

There has been growing interest in studying the relationship between energy strategies (energy efficiency and energy diversity) and economic growth to achieve the low-carbon economy goals in recent years. However, the available empirical evidence is scarce and provides contradictory results, limiting the policy implications of the existing findings. Therefore, this study aims to comprehensively examine the possible nexus between low-carbon energy strategies and economic growth for developed and developing economies. The empirical approach involves exploring the Granger causal relationships using a panel Granger (non) causality test and estimating the long-run effects by employing a panel autoregressive distributed lag modeling framework. The dataset covers panels of developed (28 countries) and developing (34 countries) economies over the period 1990-2017. Estimated results from the causality test reveal that in the economic growth-energy efficiency nexus, a unidirectional Granger causality exists for developed economies (running from economic growth to energy efficiency). In contrast, a bidirectional Granger causality is evident for developing economies. In the economic growth-energy diversity nexus, only unidirectional Granger causality exists for developed (running from economic growth to energy diversity) and developing (from energy diversity to economic growth) economies. The long-run coefficient estimates show that energy efficiency promotes economic growth for both developed and developing economies, but energy diversity promotes economic growth only for developing economies. Economic growth discourages energy efficiency for developed economies but encourages energy efficiency for developing economies. However, economic growth promotes energy diversity for both developed and developing economies. The findings of this study suggest that there is an immediate need to mitigate the adverse effect of economic growth on energy efficiency by focusing more on energy-savings behavior and practices for developed economies. Moreover, energy efficiency and energy diversity can be considered an alternate strategy to achieve higher economic growth with low carbon emissions for developing economies.

It is known that oil crises caused great economic distress in the world after the 1970s. These crises were caused by problems related to energy supply and created a more debatable environment for the relationship between economy and energy. During this period, discussions on the concepts of energy and economic growth increased among economists. This study aims to contribute to the discussions in the EC (energy consumption) and EG (economic growth) literature from the perspective of biophysical theory. In this study, the effect of EC on EG and the effect of EG on EC for the period 1970-2019 in Türkiye were examined using Zivot-Andrews unit root, Gregory-Hansen cointegration, DOLS, FMOLS, CCR and Granger causality analysis methods. With these methods, the complex structure of long-term relationships and causality relationships were examined in depth by taking into account structural breaks in Türkiye. The findings revealed that there was a cointegration relationship between EC and EG. The structural break year was found to be 2010 and it was seen that the effects of the global economic crisis continued. When the long-term coefficients are examined, a 1% increase in EC increases EG by 0.37%, 0.72% and 0.69%, respectively, according to DOLS, FMOLS and CCR estimators. In addition, EC is the Granger cause of EG. It was seen that the growth hypothesis is valid in Türkiye. The establishment of policies that support the increase in energy investments in Türkiye has the potential to contribute to a stable economic growth.

CO2 emissions, energy consumption and economic growth in Association of Southeast Asian Nations (ASEAN) countries: A cointegration approach

The relationship between energy consumption and economic growth has been extensively examined, using different methodologies, in a wide range of countries across the world. This paper focuses on a review of existing literature on the causal relationship between energy consumption and economic growth. There are currently four views regarding the direction of causality between energy consumption and economic growth in the literature. The first view centres on the notion that energy consumption Granger-causes economic growth. This view is noted as the energy-led growth The second view, known as the energy consumption supports the view that economic growth Granger-causes energy consumption. The third view argues for a bidirectional causal relationship between energy consumption and economic growth, whilst the fourth view argues for no causal relationship between the two variables. Although other literature surveys have focused mainly on studies that use total energy consumption as a proxy for energy consumption, few have consolidated the literature based on different energy sources and how this impacts on the direction of causality. The aim of this paper is therefore to review literature on the causal relationship between energy consumption and economic growth by energy source. The findings from the literature reviewed in this study reveal that although there is no consensus yet on the direction of causality between energy consumption and economic growth, the conventional wisdom is in favour of the feedback hypothesis, where energy consumption and economic growth Granger-cause one another. In terms of energy sources, the study reveals that electricity energy consumption predominates the growth-led energy hypothesis, whilst renewable energy consumption predominates the feedback hypothesis.

When economists and politicians discuss the policies that could raise growth rates, usually fiscal policy takes centre stage. Using yearly data set from 1952 to 2008, this paper has proposed to use linear Granger causality to investigate the relationship between government expenditure and economic growth in China. The study finds that there is a strictly bidirectional Granger causality between the government expenditure and economic growth. The government expenditure drives economic growth and in turn is driven by economic growth. Furthermore, the bidirectional Granger causality is robust in eight years, after eight years the bidirectional Granger causality die out.

This study aims to analyze the relationship between carbon dioxide (CO2) emissions, economic growth, and coal and oil consumption in Brazil, Russia, India, China, Turkey, and South Africa by using the bounds test approach autoregressive distributed lag (ARDL) over the period from 1969 to 2011. According to ARDL analysis results, it is determined short-run and long-run relationships among selected variables. Three long-run estimators: ARDL cointegration, dynamic ordinary least squares, and fully modified ordinary least squares are utilized to test the robustness of the estimation results. The Granger causality and the forecast error variance decomposition approaches indicate the evidence of a causal relation between variables. According to empirical results, there are the evidence of a uni-directional Granger causality from real gross domestic product (GDP) to carbon dioxide (CO2) emissions in analyzed countries, uni-directional causality from coal consumption to carbon dioxide (CO2) emissions, uni-directional causality from oil consumption to carbon dioxide (CO2) emissions in China, India, Turkey, and South Africa and bi-directional causality in Brazil and Russia. Meanwhile, there is bidirectional causality from GDP to coal consumption, from coal consumption to oil consumption for Brazil, Russia, China, Turkey, and South Africa. India's causality results reveal a bidirectional causality from GDP to coal consumption, oil consumption, and carbon dioxide (CO2) emissions, and the results of forecast error variance supported the results of the causality test.

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.