scholarly journals An Empirical Study on the Relationship Between Energy Consumption and GDP in China

2021 ◽  
Author(s):  
Jian Zhang ◽  
Xin Zhou
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Causal Relationship ◽  
Energy Use ◽  
Trade Openness ◽  
Returns To Scale ◽  
Simultaneous Equation ◽  
Equation Model ◽  
Use Efficiency ◽  
Urbanization Rate

Based on the provincial panel data of China from 1990 to 2018, this paper establishes a simultaneous equation model containing exogenous variables such as capital stock, urbanization and trade liberalization to explore the causal relationship between energy consumption and economic growth. The study found that China’s GDP and energy consumption influence each other, which is manifested as an endogenous causal relationship in the economic system. When the economic aggregate increases, the demand for energy has risen sharply. However, due to the low energy use efficiency production mode and environmental destruction and pollution, energy consumption shows a negative scale effect that restricts economic growth. China’s economic growth is manifested in diminishing returns to scale, and the urbanization rate and trade openness have a significant impact on energy consumption.

scholarly journals Investigating Energy Use, Environment Pollution, and Economic Growth in Developing Countries

2020 ◽  
Vol 24 (1) ◽  
pp. 275-293 ◽  
Author(s):  
Hooman Abdollahi
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Energy Consumption ◽  
Fossil Fuels ◽  
Energy Use ◽  
Total Population ◽  
Labour Force ◽  
Trade Openness ◽  
Environment Pollution ◽  
Bidirectional Relationship

AbstractAttaining continuous economic growth entails special consideration of energy sector and the environment. Compliance with this purpose may be more intricate in the uncertain milieu of developing countries. The present paper examines the nature of causality between energy consumption, environment pollution, and economic growth in 8 contiguous developing countries, considering GDP per capita, CO2 emissions, energy use, labour force, total population, urban population, capital formation, financial development, and trade openness. The author applied spatial simultaneous equations for random effects panel data to investigate the spatial interactions of adjacent countries over the period from 1998 to 2011. The findings reveal that energy consumption, environment degradation, and economic growth of a country influence those of its neighbours. Additionally, the results document bidirectional causal relationship between economic growth and environment pollution, as well as between environment pollution and energy consumption. Thus, there is a bidirectional relationship between energy use and economic growth. Fossil fuels replacement with renewable energy and usage of tax instruments to reduce greenhouse gas are recommended.

scholarly journals THE ECONOMY-ENERGY-ENVIRONMENT NEXUS IN IMF’S TOP 2 BIGGEST ECONOMIES: A TY APPROACH

2019 ◽  
Vol 21 (1) ◽  
pp. 1-22
Author(s):  
Ebenezer Fiifi Emire Atta Mills ◽  
Kailin Zeng ◽  
Mavis Agyapomah Baafi
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Granger Causality ◽  
Financial Development ◽  
Carbon Emissions ◽  
Energy Use ◽  
Trade Openness ◽  
Decomposition Analysis ◽  
The Usa ◽  
Variance Decomposition Analysis

This paper assesses the relationship between carbon emissions, economic growth and, energy consumption, in USA and China from the perspective of Granger causality, in a multivariate framework controlling for financial development, urbanization, and trade openness. Econometric techniques employed include unit root tests, Toda and Yamamoto Granger causality, and generalized impulse response and variance decomposition analysis for the time horizon 1980–2017. Test results indicate that governments of the USA and China cannot implement sturdier strategic energy policies in the long run without inhibiting the growth of the economy because of the bidirectional causative linkage between economic growth and energy use. A causal link does not exist between carbon emissions and financial development for both countries. Nevertheless, in the USA, there exists a unidirectional Granger causality controlling from energy consumption to financial development. In both economies, urbanization Granger causes CO2 emissions and energy use but the reverse does not hold. An upsurge in energy consumption and carbon emissions will lead to a surge in trade openness but not vice versa for China. A noteworthy result is that there is a substantiation of unidirectional causality from energy consumption to carbon emissions in both countries. In the USA, impulse response and variance decomposition analysis disclosed the effect of financial development is projected to have diminutive magnitude whiles in the future, energy use, economic growth, trade openness, and urbanization would influence carbon emissions significantly. The impacts of trade openness and financial development are expected to be of little importance in China. The general findings implied that urbanization, economic growth, and energy consumption influenced CO2 emissions significantly in the USA and China. Understanding these similar and contrasting situations is essential to reaching a global agreement on climate change affecting IMF’s top 2 biggest economies.

Remittances, Economic Growth and Poverty: A Case of African OIC Member Countries

2018 ◽  
Vol 57 (2) ◽  
pp. 121-143
Author(s):  
Nasim Shah Shirazi ◽  
Sajid Amin Javed ◽  
Dawood Ashraf
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Poverty Reduction ◽  
Simultaneous Equation ◽  
Equation Model ◽  
Annual Data ◽  
Simultaneous Equation Model ◽  
African Countries ◽  
Alternative Source ◽  
The Impact

This paper investigates the impact of remittance inflows on economic growth and poverty reduction for seven African countries using annual data from 1992-2010. By using the depth of hunger as a proxy for poverty in a Simultaneous Equation Model (SEM), we find that remittances have statistically significant growth enhancing and poverty reducing impact. Drawing on our estimates, we conclude that financial development level significantly increases the remittances inflows and strengthens poverty alleviating impact of remittances. Results of our study further show a signficant interactive imapct of remittances and finacial develpment on economic growth, suggesting the substitutability between remittance inflows and financial development. We further find that 3 percentage point increase in credit provision to the private sector (financial development) can help eliminate the severe depth of hunger in the region. Remittances, serving an alternative source of private credit, can be effective in this regard. Keywords: Remittance Inflow, Poverty Alleviation, Financial Development, Simultaneous Equation Model

scholarly journals A Review on Energy and Renewable Energy Policies in Iran

2021 ◽  
Vol 13 (13) ◽  
pp. 7328
Author(s):  
Saeed Solaymani
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Causal Relationship ◽  
Energy Security ◽  
Fossil Fuels ◽  
Agricultural Products ◽  
Energy Resources ◽  
Causality Analysis ◽  
Renewable Energy Consumption

Iran, endowed with abundant renewable and non-renewable energy resources, particularly non-renewable resources, faces challenges such as air pollution, climate change and energy security. As a leading exporter and consumer of fossil fuels, it is also attempting to use renewable energy as part of its energy mix toward energy security and sustainability. Due to its favorable geographic characteristics, Iran has diverse and accessible renewable sources, which provide appropriate substitutes to reduce dependence on fossil fuels. Therefore, this study aims to examine trends in energy demand, policies and development of renewable energies and the causal relationship between renewable and non-renewable energies and economic growth using two methodologies. This study first reviews the current state of energy and energy policies and then employs Granger causality analysis to test the relationships between the variables considered. Results showed that renewable energy technologies currently do not have a significant and adequate role in the energy supply of Iran. To encourage the use of renewable energy, especially in electricity production, fuel diversification policies and development program goals were introduced in the late 2000s and early 2010s. Diversifying energy resources is a key pillar of Iran’s new plan. In addition to solar and hydropower, biomass from the municipal waste from large cities and other agricultural products, including fruits, can be used to generate energy and renewable sources. While present policies indicate the incorporation of sustainable energy sources, further efforts are needed to offset the use of fossil fuels. Moreover, the study predicts that with the production capacity of agricultural products in 2018, approximately 4.8 billion liters of bioethanol can be obtained from crop residues and about 526 thousand tons of biodiesel from oilseeds annually. Granger’s causality analysis also shows that there is a unidirectional causal relationship between economic growth to renewable and non-renewable energy use. Labor force and gross fixed capital formation cause renewable energy consumption, and nonrenewable energy consumption causes renewable energy consumption.

CAUSAL RELATIONSHIP OF ENERGY CONSUMPTION AND ECONOMIC GROWTH – A CASE STUDY OF PAKISTAN

2021 ◽  
Vol 9 (1) ◽  
pp. 139-164
Author(s):  
Saddam Hussain ◽  
Chunjiao Yu
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Energy Consumption ◽  
Causal Relationship ◽  
Inflation Rate ◽  
Time Series Data ◽  
Consumer Price Index ◽  
Series Data ◽  
Relationship Of

This paper explores the causal relationship between energy consumption and economic growth in Pakistan, applying techniques of co-integration and Hsiao’s version of Granger causality, using time series data over the period 1965-2019. Time series data of macroeconomic determi-nants – i.e. energy growth, Foreign Direct Investment (FDI) growth and population growth shows a positive correlation with economic growth while there is no correlation founded be-tween economic growth and inflation rate or Consumer Price Index (CPI). The general conclu-sion of empirical results is that economic growth causes energy consumption.

scholarly journals ANALISIS PENGARUH BELANJA MODAL TERHADAP PERTUMBUHAN EKONOMI DAN KETIMPANGAN PENDAPATAN DI SUMATERA BARAT

2020 ◽  
Vol 2 (4) ◽  
Author(s):  
Yohana Pranita ◽  
Idris Idris
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Income Inequality ◽  
Regression Model ◽  
Capital Expenditure ◽  
Secondary Data ◽  
Simultaneous Equation ◽  
Equation Model ◽  
Capital Expenditures ◽  
West Sumatra

Abstrak : This study aims to determine and analyze the effect of capital expenditureon economic growth and income inequality in West Sumatra. This research isdescriptive and inductive. The data used in this study is secondary data with datacollection using panel data obtained from BPS West Sumatra Province 2014-2018period with 19 regencies / cities in West Sumatra. This study analyzed using asimultaneous equation model (simultaneous equation regression model). The resultsof this study indicate that (1) Capital Expenditures have a significant effect onEconomic Growth in West Sumatra (2) Capital Expenditures have no significanteffect on Income Inequality in West Sumatra (3) Simultaneously Capital Expendituresand Economic Growth have a significant effect on Income Inequality in WestSumatra.Keyword : Capital Expenditure, Economic Growth, Income Inequality

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