Is energy consumption in the transport sector hampering both economic growth and the reduction of CO2 emissions? A disaggregated energy consumption analysis

Abstract

• The paper analysis the interactions between transport sector energy consumption, by source, growth and CO 2 emissions. • A panel for 15 OECD countries with annual data from 1995 to 2014 was used. • The short- and long-run effects were analysed by using a ARDL approach with DK-FE estimator. • Economic growth is boosted by the transports fossil fuels consumption, on contrary to renewables. • Investment in rail infrastructure has hampered the fossil fuels use.