Examining the Relationships between Energy Use, Fossil Fuel Consumption, Carbon Dioxide Emissions, and Economic Growth in Southeast Asia

Anh Tru Nguyen

doi:10.24112/jaes.030005

Abstract

This article examines the relationships between energy use, fossil fuel consumption, CO2 emissions, and economic growth in three developing countries in Southeast Asia between 1988 and 2017. We found that the GDP per capita positively affects per capita CO2 emissions, and that it has a positive relationship with per capita energy use. Additionally, we found that GDP per capita is negatively affected by fossil fuel consumption, whereas it is positively affected by per capita CO2 emissions. Moreover, results show directional relationships running from per capita CO2 emissions to GDP per capita, from GDP per capita to per capita energy use, from GDP per capita to fossil fuel consumption, and from GDP per capita to per capita CO2 emissions. We found cointegration among the variables at the 1% critical value and two levels of cointegration among variables at the 5% critical value. Finally, we recommend policies to boost economic growth, reduce CO2 emissions, and achieve sustainable development in Southeast Asia. DOWNLOAD HISTORY | This article has been downloaded 238 times in Digital Commons before migrating into this platform.

Highlights

Southeast Asia, where millions of people still live in extreme poverty and have to work in climatesensitive sectors, is one of the most vulnerable regions in the world to the effects of climate change
We found that per capita energy use has a positive relationship with gross domestic product (GDP) per capita reflecting that economic growth of the three countries still heavily depends on energy consumption
We found that per capita energy use has a positive relationship with GDP per capita, implying that energy use is a positive contributor to economic growth of the three countries, whereas fossil fuel consumption negatively affect GDP per capita

Summary

Introduction

Southeast Asia, where millions of people still live in extreme poverty and have to work in climatesensitive sectors, is one of the most vulnerable regions in the world to the effects of climate change. The increase in CO2 emissions in this region has been more rapid than in any other area worldwide in recent decades [1]. By 2017, the growth of energy demand in this region accounted for 8 percent globally [2]. By 2010, five countries-Indonesia, Malaysia, the Philippines, Thailand, and Vietnam-accounted for about 90 percent of greenhouse gas emissions in Southeast Asia [1]. Some existing studies have examined the relationships between CO2 emissions, energy consumption, and economic growth in Southeast Asia in recent years [4,5,6,7]. None examined the correlation between fossil fuel consumption and these variables. What is the relationship between per capita energy use, fossil fuel consumption, per capita CO2 emissions, and economic

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Conclusion