Abstract
This research investigates the co-movement and causality relationships between greenhouse gas emissions, energy consumption and economic growth for 16 Asian countries over the period 1990–2012. The empirical findings suggest that in the long run, bidirectional Granger causality between energy consumption, GDP and greenhouse gas emissions and between GDP, greenhouse gas emissions and energy consumption is established. A non-linear, quadratic relationship is revealed between greenhouse gas emissions, energy consumption and economic growth, consistent with the environmental Kuznets curve for these 16 Asian countries and a subsample of the Asian new industrial economy. Short-run relationships are regionally specific across the Asian continent. From the viewpoint of energy policy in Asia, various governments support low-carbon or renewable energy use and are reducing fossil fuel combustion to sustain economic growth, but in some countries, evidence suggests that energy conservation might only be marginal.
Highlights
Carbon dioxide emissions from fossil fuel combustion, associated with different economic activities, are an important driver of global climate change
To investigate the long-run relationship between greenhouse gas emissions, energy consumption and real GDP growth, we propose a framework based on the conventional Environment Kuznets
We found the existence of cointegration relationships among greenhouse gas emissions, energy consumption, GDP and the square of GDP
Summary
Carbon dioxide emissions from fossil fuel combustion, associated with different economic activities, are an important driver of global climate change. Increasing energy demand stimulates economic growth, but energy use causes greenhouse gas emissions. In the past decade, increasing attention to global warming and climate change has focused on the relationship between environmental pollutants, energy consumption and economic growth. The world’s top energy-consuming countries have widely discussed CO2 reduction targets and tabled more sustainable policy interventions aimed at fostering cleaner economic development trajectories To effectively control greenhouse gas emissions and ensure the sustainability of economic development, it is important to better understand the links between greenhouse gas emissions, energy consumption and economic growth
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