scholarly journals The Effect of Energy Usage, Economic Growth, and Financial Development on CO2 Emission Management: An Analysis of OECD Countries with a High Environmental Performance Index

Energies ◽  
2021 ◽  
Vol 14 (15) ◽  
pp. 4671
Author(s):  
Katarzyna Szymczyk ◽  
Dilek Şahin ◽  
Haşim Bağcı ◽  
Ceyda Yerdelen Kaygın
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Co2 Emissions ◽  
Financial Development ◽  
Performance Index ◽  
Environmental Performance ◽  
Urban Population ◽  
Trade Openness ◽  
Environmental Performance Index ◽  
Growth Energy

The environmental performance index was developed to protect public health, and to sustain and manage the ecological vitality that is a crucial factor in countries’ social and economic development. The increase in CO2 emissions has been threatening environmental and human health. The main objective of this study is to evaluate the impact of economic growth, energy consumption, energy management, the urban population, trade openness, and financial development on CO2 emissions in the OECD countries that have a high ranking in the environmental performance index by utilizing the panel data analysis method for the years spanning 1990–2014. This assessment finds positive relationships between economic growth, energy consumption, and the urban population, and CO2 emissions. Moreover, it is put forward that a negative and significant relationship between financial development and CO2 emissions exists. Despite displaying a similar negative correlation, the relationship between trade openness and CO2 emissions is insignificant. In the Dumitrescu-Hurlin panel causality test conducted, it was seen that a two-way causality is prevalent between energy consumption and CO2 emissions. In addition, interrelations where CO2 emissions cause trade openness, and the urban population is an explanatory variable of the former relationship, were discovered.

scholarly journals Assessing the Impact of Factors Driving Global Carbon Dioxide Emissions

2019 ◽  
pp. 1-15
Author(s):  
Redwan Ahmed ◽  
Gabriela Sabau ◽  
Morteza Haghiri
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Co2 Emissions ◽  
Financial Development ◽  
Carbon Dioxide Emissions ◽  
Well Being ◽  
Testing Procedures ◽  
Cointegration Tests ◽  
Growth Energy ◽  
The Impact

The aim of this study is to empirically investigate the causal relationship between global CO2 emissions and six of their potentially contributing factors (i.e., economic growth, energy consumption, population, trade openness, financial development and corruption), by using a panel data collected from 65 countries during 1995 to 2013. We developed a dynamic model and used a four-step testing procedures (i.e., panel unit root tests, panel cointegration tests, long-run estimates, i.e. FMOLS estimates and a Granger causality test). The results showed that the most important factors driving global CO2 emissions were economic growth, energy consumption, corruption and financial development. It is recommended that countries develop their own CO2 reducing policies by designing an appropriate combination/mix of policy tools, such as regulation, economic, voluntary and educational/ informational instruments to address their environmental pollution. Countries could consider all dimensions of well-being when they measure their economic development. Imposing pollution taxes on fossil fuel based energy supplies, developing emissions standards, strengthening anti-corruption strategies and educating people about the adverse effects of CO2 emissions on the natural environment and human health are potential policy measures.

scholarly journals Modelling Energy Consumption, Carbon Dioxide Emissions and Economic Growth Nexus in Ethiopia: Evidence from Cointegration and Causality Analysis

2018 ◽  
Vol 6 (6) ◽  
pp. 699 ◽  
Author(s):  
Shemelis Kebede Hundie
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Co2 Emissions ◽  
Financial Development ◽  
Environmental Sustainability ◽  
Carbon Dioxide Emissions ◽  
Positive Impact ◽  
Trade Openness ◽  
Causality Analysis ◽  
The Impact

Policy makers need to know the relationship among energy use, economic growth and environmental quality in order to formulate rigorous policy for economic growth and environmental sustainability. This study analyzes the nexus among energy consumption, affluence, financial development, trade openness, urbanization, population and CO2 emissions in Ethiopia using data from 1970–2014. The ARDL cointegration results show that cointegration exists among the variables. Energy consumption, population, trade openness and economic growth have positive impact on CO2 in the long-run while economic growth squared reduces CO2 emissions which confirms that the EKC hypothesis holds in Ethiopia. In the short-run urbanization and energy consumption intensify environmental degradation. Toda-Yamamoto granger causality results indicate the bi-directional causality between energy consumption and CO2 emissions, CO2 emissions and urbanization. Financial development, population and urbanization cause economic growth while economic growth causes CO2 emissions. Causality runs from energy consumption to financial development, urbanization and population which in turn cause economic growth. From the result, CO2 emissions extenuation policy in Ethiopia should focus on environmentally friendly growth, enhancing consumption of cleaner energy, incorporating the impact of population, urbanization, trade and financial development.

scholarly journals Economic growth, energy consumption, financial development, international trade and CO2 emissions in Indonesia

2013 ◽  
Vol 25 ◽  
pp. 109-121 ◽  
Author(s):  
Muhammad Shahbaz ◽  
Qazi Muhammad Adnan Hye ◽  
Aviral Kumar Tiwari ◽  
Nuno Carlos Leitão
Keyword(s):  
Economic Growth ◽  
International Trade ◽  
Energy Consumption ◽  
Co2 Emissions ◽  
Financial Development ◽  
Growth Energy

The Nexus between Financial Development, Economic Growth and Energy Consumption in India: A VECM Technique

2020 ◽  
pp. 602-612
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Financial Development ◽  
Consumer Price Index ◽  
Development Economic ◽  
Energy Prices ◽  
Vector Error Correction ◽  
Percent Increase ◽  
Growth Energy ◽  
The Impact

The demand for energy consumption requires efficient financial development in terms of bank credit. Therefore, this study examines the nexus between Financial Development, Economic Growth, Energy Prices and Energy Consumption in India, utilizing Vector Error Correction Model (VECM) technique to determine the nature of short and long term relationships from 2010 to 2019. The estimation of results indicates that a one percent increase in bank credits to private sector results in 0.10 percent increase in energy consumption and 0.28 percent increase in energy consumption responses to 1 percent increase in economic growth. It is also observed that the impact of energy price proxied by consumer price index is statistically significant with a negative sign indicating the consistency with the theory.

scholarly journals The Impact of Industrialization, Trade Openness, Financial Development, and Energy Consumption on Economic Growth in Indonesia

Economies ◽  
2021 ◽  
Vol 9 (4) ◽  
pp. 174
Author(s):  
Khalid Eltayeb Elfaki ◽  
Rossanto Dwi Handoyo ◽  
Kabiru Hannafi Ibrahim
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Least Squares ◽  
Financial Development ◽  
Correction Term ◽  
Trade Openness ◽  
Ordinary Least Squares ◽  
Distributed Lag ◽  
Long Run ◽  
The Impact

This study aimed to scrutinize the impact of financial development, energy consumption, industrialization, and trade openness on economic growth in Indonesia over the period 1984–2018. To do so, the study employed the autoregressive distributed lag (ARDL) model to estimate the long-run and short-run nexus among the variables. Furthermore, fully modified ordinary least squares (FMOLS), dynamic least squares (DOLS), and canonical cointegrating regression (CCR) were used for a more robust examination of the empirical findings. The result of cointegration confirms the presence of cointegration among the variables. Findings from the ARDL indicate that industrialization, energy consumption, and financial development (measured by domestic credit) positively influence economic growth in the long run. However, financial development (measured by money supply) and trade openness demonstrate a negative effect on economic growth. The positive nexus among industrialization, financial development, energy consumption, and economic growth explains that these variables were stimulating growth in Indonesia. The error correction term indicates a 68% annual adjustment from any deviation in the previous period’s long-run equilibrium economic growth. These findings provide a strong testimony that industrialization and financial development are key to sustained long-run economic growth in Indonesia.

scholarly journals Dynamic Causality Among FDI, Economic Growth and CO2 Emissions in India With Open Markets and Technology Gap

2020 ◽  
Vol 11 (3) ◽  
pp. 15-31 ◽  
Author(s):  
Ritu Rana ◽  
Manoj Sharma
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Co2 Emissions ◽  
Trade Openness ◽  
World Bank Group ◽  
Pollution Haven Hypothesis ◽  
Technology Gap ◽  
Development Indicators ◽  
Pollution Haven ◽  
Bank Group

This study examines the causality relationships between FDI, economic growth (in terms of GDP) and the natural environment, in terms of CO2 emissions and energy consumption, along with two more variables of interest i.e., trade openness and technology gap in the context of India. The data used in the study is obtained from World Development Indicators (WDI) of the World Bank Group for the period 1980 to 2014. The study employed the dynamic multivariate Toda-Yamamoto (TY) approach that uses the modified Wald (MWALD) test. The results show that FDI is neither causing economic growth nor is it bridging the technology gap directly in India. The results also indicate the existence of a Pollution Haven Hypothesis in India as the FDI is causing environmental degradation, i.e. CO2 emissions and energy consumption. Also, FDI is, though not causing GDP directly, but is doing so indirectly through CO2 emissions validating the existence of Pollution Haven Hypothesis. FDI is causing trade openness in India, but that openness is again causing more FDI which is doing no good for India.

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