scholarly journals EKC Test of the Relationship between Nitrogen Dioxide Pollution and Economic Growth—A Spatial Econometric Analysis Based on Chinese City Data

Author(s):  
Chengyu Han ◽  
Zhaolin Gu ◽  
Hexiang Yang

During the just concluded 13th Five-Year Plan, China continued to maintain the momentum of rapid economic development, but still faced environmental pollution problems caused by this. Finding the relationship between Nitrogen Dioxide pollution and economic development is helpful and significant in better achieving and optimizing sustainable environmental development. Taking China’s 333 prefecture-level cities as samples from 2016 to 2018, the spatial lag model (SAR) was used to study the impact of economic growth on urban Nitrogen Dioxide pollution. The results show that Nitrogen Dioxide has strong positive characteristics of spatial spillover, but there is a linear relationship between economic growth and Nitrogen Dioxide concentration that slowly rises, and there is no inverted U-shaped relationship, which does not support the Environmental Kuznets Curve (EKC) hypothesis; The results also show the impact of per capita GDP, natural gas consumption, residential natural gas consumption, industrialization, and transportation development on the increase of Nitrogen Dioxide concentration, and the impact of green coverage on the decrease of Nitrogen Dioxide concentration. However, there is no significant relationship between technological investment and Nitrogen Dioxide concentration. The above conclusions are still valid after the robustness test, and recommendations are put forward to reduce Nitrogen Dioxide pollution.

2018 ◽  
Vol 29 (2) ◽  
pp. 216-231 ◽  
Author(s):  
Li Zhi-Guo ◽  
Han Cheng ◽  
Wei Dong-Ming

The Northeast Asia, as one of the most rapidly development regions, has a large amount of energy consumption. Therefore, it is very significant to study the relationship between natural gas consumption and economic growth in the Northeast Asia. This paper builds Panel Data Model to study the relationship between natural gas consumption and economic growth in China, Japan, and Korea from 1991 to 2015, on the basis of analyzing the impact mechanism that natural gas has on economic growth. This paper finds that the Japan’s elasticity coefficient of natural gas consumption is the highest, whereas Korea’s is the lowest, and China’s is in the middle of these two countries, because of countries’ different development level and energy consumption mode. Moreover, the results of Granger causality relationship test show that there is only one-way Granger causality relationship between natural gas consumption and economic growth of China, but no causal relationship is found for Japan and Korea.


2017 ◽  
Vol 7 (4) ◽  
pp. 484-492
Author(s):  
Mukhtar Danladi Galadima ◽  
Abubakar Wambai Aminu

This paper examines the Presence of Nonlinear Relationship between Natural Gas Consumption and Economic Growth in Nigeria from 1981 to 2015. The Ramsey Reset test,Incremental F-test, and Wald test have been employed to test for non-linearity in the relationship between natural gas consumption and economic growth in Nigeria. The nonlinearity test results revealed that the relationship is nonlinear. However, the results are suggestive of the fact that linear models might not be the appropriate statistical tools for estimating the relationship between natural gas consumption and economic growth in Nigeria. Therefore, the paper recommends that the Nigeria’s policymakers consider taking into cognizance nonlinear modeling techniques as alternative tools for modeling, estimating and forecasting the relationship between natural gas consumption and economic growth in the country.


2021 ◽  
Vol 9 ◽  
Author(s):  
Yue Dou ◽  
Jun Zhao ◽  
Jiajia Dong

To investigate the nexus between natural gas consumption, global carbon dioxide (CO2) emissions, and technological innovation, this study employs a balanced panel dataset of 73 countries for the period 1990–2019 based on the fixed effect and random effect estimation methods. Considering potential heterogeneity in the natural gas-CO2 nexus, this study divides the 73 countries into regional comprehensive economic partnership (RCEP) countries and non-RCEP countries for comparative analysis. The main findings indicate that natural gas consumption can significantly promote CO2 emissions for the full sample and non-RCEP countries, and improved technological innovation can help alleviate CO2 emissions from natural gas consumption. In the RCEP countries, technological innovation can improve the carbon emission reduction effect of natural gas. Furthermore, economic growth and global CO2 emissions show an inverted U-shaped relationship, which confirms the environmental Kuznets curve hypothesis. Finally, several policy implications are provided to reduce global CO2 emissions and promote green recovery in the post-epidemic era.


2018 ◽  
Vol 12 (2) ◽  
pp. 284-296 ◽  
Author(s):  
Mukhtar Danladi Galadima ◽  
Abubakar Wambai Aminu

Purpose The purpose of this paper is to identify the level of natural gas consumption that can be adjudged as capable of improving the growth of the Nigerian economy, to investigate whether natural gas consumption is at optimal level in Nigeria and to examine the nature and rate to which natural gas consumption affects economic growth in Nigeria at low and high regimes. Design/methodology/approach The tool used to achieve the objectives of the paper is the smooth transition regression (STR) model. Findings The findings of the paper are that the relationship between natural gas consumption and economic growth in Nigeria is asymmetric, where the natural gas consumption threshold value in the country is 9085.36 standard cubic meters, whereas the level of its consumption in the country is below the optimal level. Further, in both low and high regimes, natural gas consumption has been found to have a positive and significant impact on economic growth in Nigeria. Practical implications The policy implication of the paper is that natural gas consumption in Nigeria should not be less than 9085.36 standard cubic meters and the country should intensify efforts to increase the level of natural gas consumption, as it is below the optimal level and its consumption bolsters the growth of Nigerian economy. Originality/value What is new in this paper is its ability to use the STR model. To the best of the authors’ knowledge, such methodology has not been adopted before in such a relation.


2019 ◽  
Vol 14 (2) ◽  
pp. 261-284
Author(s):  
Sahbi Farhani ◽  
Mohammad Mafizur Rahman

Purpose The purpose of this study is to investigate the relationship between natural gas consumption and economic growth of France. Design/methodology/approach To analyze the relationship, an extended Cobb–Douglas production function is used. The auto-regressive distributive lag bounds testing approach is applied to test the existence of the long-run relationship between the series. The vector error correction model Granger causality approach is implemented to detect the direction of causal relation between the variables. Findings The results show that variables are cointegrated for the long-run relationship. They also indicate that natural gas consumption, exports, capital and labor are the contributing factors to economic growth in France. The causality analysis indicates that feedback hypothesis is validated between gas consumption and economic growth. The bidirectional causality is also found between exports and economic growth, gas consumption and exports and capital and gas consumption. Research limitations/implications The feedback hypothesis between gas consumption and economic growth implies that adoption of energy conservation policies should be discouraged; rather, gas consumption and economic growth policies should be jointly implemented. Originality/value This study is an original work for France and shows the results of the relationship between natural gas consumption and economic growth. In line with the results of this study, new direction for policy makers is opened up to formulate a comprehensive energy policy to sustain long-term economic growth in France.


2020 ◽  
Vol 27 (33) ◽  
pp. 41776-41786
Author(s):  
Sue Kyoung Lee ◽  
Gayoung Choi ◽  
Eunmi Lee ◽  
Taeyoung Jin

Abstract The purpose of this study is to investigate the relationship between official development assistance (ODA) on CO2 emissions based on both direct and indirect frameworks, using the annual panel data of 30 recipient countries of Korea from 1993 to 2017. It employs a modified impact, population, affluence, and technology (IPAT) model and a simultaneous equation framework for the direct model and indirect model, respectively. The empirical results suggest that ODA has both a direct and an indirect mitigation impact in the recipient countries. Compared to the direct impact, a small indirect mitigation impact of ODA on CO2 emissions is derived. However, the estimation results of the environmental Kuznets curve (EKC) equation imply that economic growth has the potential of mitigating the environmental degradation when the economic development in recipient countries of Korea reaches a certain level. Therefore, the bilateral cooperation, through ODA and the supportive policy, should make an effort to promote economic development and mitigation of environmental degradation in developing countries.


2019 ◽  
Vol 9 (1) ◽  
pp. 275-292
Author(s):  
Mukhtar Danladi Galadima ◽  
Abubakar Wambai Aminu

This paper analyzed the issue of structural breaks in natural gas consumption and economic growth in Nigeria. The newly residual augmented least squares (RALS-LM) unit root test with breaks also known as “RALS-LM test with trend breaks and non-normal errors” proposed by Meng-Lee-Payne (2017) and the new structural breaks testing proposed by Kejriwal–Perron (2010) are among the tools used for the investi-gation. Our empirical findings provide significant evidence that the series of natural gas consumption and economic growth are stationary with one or two trend breaks. Furthermore, the investigation identified significant incidences of structural breaks in the relationship between natural gas consumption and economic growth in 1990, 2004, 2009 and all the break dates were found to be significant. The evaluation of the sub-sample periods based on the break dates revealed that the first and second breaks are potential while the last is destructive. Moreover, the estimate of the long-run elasticity is significant where a 1% increase in natural gas consumption induces the growth of Nigerian economy by 0.15% and all the dummies that represent the breakpoints are also significant where the 2004 break had a bigger effect among other breaks. The implication of the results is that shocks in the series of natural gas consumption and economic growth in Nigeria have transitory effect, modeling the relationship between natural gas consumption and economic growth in Nigeria without taking structural breaks into consideration could produce biased and unreliable statistical results, and there is economically significant dependence of the Nigerian economy on natural gas consumption.


2014 ◽  
Vol 707 ◽  
pp. 514-519
Author(s):  
Xin Min Zhang ◽  
Kuang Cen ◽  
Wan Li Xing

Gas consumption exist great regional difference, price and income are the main factors affecting consumption .Global gas consumption has slow growth, but the price in 2008 there was a twist. We analyze the global natural gas consumption and price points using the data from the BP. The level of economic development and natural gas reserves determine the differences in the levels of consumption. In order to eliminate the impact per unit, the regression model uses the data in the log. This paper studied the influence factors of natural gas consumption in North America using of consumer income elasticity and price elasticity. The results show that the gas consumption have a low income elasticity and price elasticity is higher .Law of "S" shape can explain the income elasticity is low, the reason is that the stage of economic development. Price elasticity is higher lies in the different between Canada and the United States, the United States is a net importer of natural gas, and Canada is a net exporter. Keywords: Consumption Flexibility; Natural Gas Demand; income; price


Sign in / Sign up

Export Citation Format

Share Document