Relationship between energy consumption, CO2 emission and economic growth in ASEAN: Cointegration and causality model

Abstract

The main objective of the research is to examine the dynamic relationship between energy consumption, CO2 emissions and economic output in ASEAN for the period 1971–2015 using cointegration and causality models. The empirical results from the models suggest that there is a long-run relationship and there is causality between these variables, indicating that energy consumption and output are related to CO2 emissions. The results provide useful information in terms of policy implications. Policies aiming to reduce or conserve energy consumption could be implemented as it would help to reduce the level of CO2 emission, without having much effect on economic growth.