scholarly journals Financial Development and Bioenergy Consumption in the EU28 Region: Evidence from Panel Auto-Regressive Distributed Lag Bound Approach

Resources ◽  
2019 ◽  
Vol 8 (1) ◽  
pp. 44 ◽  
Author(s):  
Mohd Alsaleh ◽  
A. Abdul-Rahim
Keyword(s):  
Energy Consumption ◽  
Financial Development ◽  
Financial Market ◽  
Positive Impact ◽  
Developed Countries ◽  
Positive Influence ◽  
The European Union ◽  
Causality Analysis ◽  
Distributed Lag ◽  
Statistical Level

This paper investigates the relationship between financial development and bio-energy consumption in the European Union (EU28) countries for the period from 1990 to 2013 through the panel autoregressive distributed lag (ARDL) approach and causality analysis. The empirical results show that financial development shows a significant positive impact, at a 1% statistical level, on bio-energy consumption for the EU28 during the studied period. In developing countries, the financial market indicator affects bio-energy consumption outgrowth positively and significantly at a 1% statistical level. For developed countries, there is a positive influence of financial institutions and financial market indicators on bio-energy consumption growth at the 1% and 10% levels, respectively. The study concludes that there is a significant relationship between the consumption of bio-energy and financial development factors. The study provides recommendations that are useful when formulating policy related to energy consumption and the promotion of bio-energy consumption. Financial development and economic outgrowth show a significant influence on the outgrowth of bio-energy consumption at a 1% statistical level.

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.

Carbon Dioxide Emissions, Energy Consumption in Agriculture: A Causality Analysis for India

2018 ◽  
Vol 17 (2) ◽  
pp. 183-207 ◽  
Author(s):  
Sudeshna Ghosh
Keyword(s):  
Carbon Dioxide ◽  
Energy Consumption ◽  
Granger Causality ◽  
Financial Development ◽  
Carbon Dioxide Emissions ◽  
Value Added ◽  
Causality Analysis ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run

This article utilises the vector error correction model (VECM) and Granger causality tests to explore short-run and long-run relationships, in India, across carbon dioxide (CO2) emissions, energy consumption, agriculture value added (AV), trade liberalisation and financial development over the time period 1971–2013. The study adopts the autoregressive distributed lag (ARDL)-bound testing approach and Johansen–Juselius maximum likelihood procedure to find out the cointegrating relation among the variables. Both ARDL approach and Johansen–Juselius cointegration approach show that the concerned variables under study are cointegrated. Short-run Granger causality results indicate the existence of bidirectional causality between AV and CO2 emissions, and energy used and CO2 emissions. In the long-run trade, financial development, energy consumption and AV affect CO2 emissions. The results put thrust on the need to utilise energy-efficient technologies in agriculture to save the damage of the environment. JEL: C32, O53, Q43

scholarly journals The Urbanisation Impacts on the Policy Effects of the Carbon Tax in China

2021 ◽  
Vol 13 (12) ◽  
pp. 6749
Author(s):  
Shuyang Chen
Keyword(s):  
Energy Consumption ◽  
Carbon Emissions ◽  
Computable General Equilibrium ◽  
Carbon Tax ◽  
Negative Impact ◽  
Positive Impact ◽  
Evaluation Framework ◽  
Socioeconomic Impacts ◽  
Policy Effects ◽  
Distributed Lag

In the literature, very few studies have focused on how urbanisation will influence the policy effects of a climate policy even though urbanisation does have profound socioeconomic impacts. This paper has explored the interrelations among the urbanisation, carbon emissions, GDP, and energy consumption in China using the autoregressive distributed lag (ARDL) model. Then, the unit urbanisation impacts are inputted into the policy evaluation framework of the Computable General Equilibrium (CGE) model in 2015–2030. The results show that the urbanisation had a positive impact on the GDP but a negative impact on the carbon emissions in 1980–2014. These impacts were statistically significant, but its impact on the energy consumption was not statistically significant. In 2015–2030, the urbanisation will have negative impacts on the carbon emissions and intensity. It will decrease the GDP and the household welfare under the carbon tax. The urbanisation will increase the average social cost of carbon (ASCC). Hence, the urbanisation will reinforce the policy effects of the carbon tax on the emissions and welfare.

The nexus between financial development and energy consumption: Estimating the role of foreign direct investment, economic growth and urbanization

2021 ◽  
pp. 0958305X2110453
Author(s):  
Jaleel Ahmed ◽  
Shuja ur Rehman ◽  
Zaid Zuhaira ◽  
Shoaib Nisar
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Energy Consumption ◽  
Financial Development ◽  
Latin American ◽  
Direct Investment ◽  
Negative Impact ◽  
Positive Impact ◽  
Supply And Demand ◽  
The Impact

This study examines the impact of financial development on energy consumption for a wide array of countries. The estimators used for financial development are foreign direct investment, economic growth and urbanization. The study employed a panel data regression on 136 countries with time frame of years 1990 to 2019. The model in this study deploys system GMM technique to estimate the model. The results show that financial development has a significant negative impact on energy consumption overall. Foreign direct investment and urbanization has significant impact on energy consumption. Also, economic growth positive impact on energy consumption its mean that economic growth promotes energy consumption. When dividing further the sample into different groups of regions such as Asian, European, African, North/Latin American and Caribbean countries then mixed results related to the nexus between financial development and energy consumption with respect to economic growth, urbanization and foreign direct investment. The policymakers in these different groups of countries must balance the relationship between energy supply and demand to achieving the sustainable economic development.

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 Can Co2 Emissions and Energy Consumption Determine the Economic Performance of South Korea? A Time-Series Analysis

2021 ◽  
Author(s):  
Tomiwa Sunday Adebayo ◽  
Abraham Ayobamiji Awosusi ◽  
Dervis Kirikkaleli ◽  
Gbenga Daniel Akinsola ◽  
Madhy Nyota Mwamba
Keyword(s):  
Economic Growth ◽  
Sustainable Development ◽  
Energy Consumption ◽  
South Korea ◽  
Energy Use ◽  
Ordinary Least Squares ◽  
Least Square ◽  
Wavelet Coherence ◽  
Causality Analysis ◽  
Distributed Lag

Abstract Following the United Nations Sustainable Development Goals (UN-SDGs) which emphases on relevant concerns that encompass access to energy (SDG-7) and sustainable development (SDG-8). This research tends to re-examine the interaction between urbanization, CO2, capital formation, energy use, and economic growth in South Korea, which has not yet been assessed using the recent econometric techniques and data stretching between 1965 and 2019. The present study utilized the Autoregressive distributed lag (ARDL), Dynamic Ordinary Least Square (DOLS), and Fully Modified Ordinary Least Squares (FMOLS) methods while for the causality direction the Gradual shift and Wavelet coherence method are utilized. The ARDL bounds test uncovers a long-run linkage between the variables of interest. Empirical evidence shows that emissions spur economic growth. Thus, there is also a necessity to change the energy mix in South Korea to renewables, based on increasing environmental awareness across the globe, to enable the use of sustainable energy sources and establish an environmentally sustainable ecosystem. Moreover, the energy-induced growth hypothesis is validated. This result is resonated by the causality analysis where energy consumption drives GDP one-way in South Korea. This suggests that South Korea cannot embark on energy conservative policies, as such actions will hurt economic progress. Additionally, unidirectional causality is seen between urbanization, trade opens, and economic growth. These findings have far-reaching consequences for GDP growth and macroeconomic indicators in South Korea.

scholarly journals Identifying Causality Relationship between Energy Consumption and Economic Growth in Developed Countries

2017 ◽  
Vol 1 (2) ◽  
pp. 71 ◽  
Author(s):  
Hasan Dinçer ◽  
Serhat Yüksel ◽  
Zafer Adalı
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Energy Consumption ◽  
Developed Countries ◽  
Annual Data ◽  
Causality Analysis ◽  
Panel Causality ◽  
Bidirectional Relationship ◽  
Causality Relationship ◽  
Economic Improvement

The main purpose of this study is to evaluate the causality relationship between energy consumption and economic growth for developed countries. Within this context, annual data of 22 developed countries was examined by using Dumitrescu Hurlin panel causality analysis. As a result, it was determined that that there is a bidirectional relationship between energy consumption and economic improvement for developed countries. This condition provides two different results. Firstly, energy consumption has an influence on economic development for these countries. While considering this result, it can be said that any limitation in energy consumption will restrict economic growth. Moreover, it was also concluded that level of economic growth is the main reason of energy consumption for developed countries. In other words, developed countries tend to have more energy consumption when their economies are growing.

scholarly journals Is Tourism and Energy Consumption Linked? Evidence from Australia

2021 ◽  
Vol 13 (19) ◽  
pp. 10800
Author(s):  
Avishek Khanal ◽  
Mohammad Mafizur Rahman ◽  
Rasheda Khanam ◽  
Eswaran Velayutham
Keyword(s):  
Energy Consumption ◽  
Gross Domestic Product ◽  
Financial Development ◽  
Primary Energy ◽  
Domestic Product ◽  
Development Indicators ◽  
Distributed Lag ◽  
Long Run ◽  
Using Data ◽  
Australian Bureau Of Statistics

Tourism contributes to the growth of an economy via earning foreign currencies and employment opportunities. However, tourism also contributes to greater energy consumption because of various tourist activities such as hotel accommodations and transportation. This study investigates the long-term cointegrating relationship between international tourist arrivals and primary energy consumption in Australia. In addition, the roles of gross domestic product, gross fixed capital formation, financial development, and total population on energy consumption are also examined. The study covered the last four decades (1976–2018) using data from the Australian Bureau of Statistics, BP Statistical Review, and the World Development Indicators. Augmented Dickey-Fuller, Phillips-Perron, Autoregressive distributed lag (ARDL) bound tests, Johansen and Juselius, Bayer-Hanck cointegration test, and several key diagnostic tests have been conducted to assess the relationship. The estimated results indicate that tourist arrivals, gross domestic product, and financial development have a significant long-run cointegrating relationship with energy consumption. Policy measures are suggested based on the findings of this study.

scholarly journals Do financial systems spur economic growth in the USA? An empirical investigation

2019 ◽  
Vol 66 (2) ◽  
pp. 165-185
Author(s):  
Sheilla Nyasha ◽  
N.M. Odhiambo
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Positive Impact ◽  
The United States ◽  
Bounds Testing ◽  
Financial Systems ◽  
Development Indicators ◽  
Distributed Lag ◽  
Long Run ◽  
The Usa

In this paper, we use the autoregressive distributed lag (ARDL) bounds testing approach to examine the dynamic impact of both bank-based financial development and market-based financial development on economic growth in the United States of America (USA) during the period 1980 to 2012. In order to adequately capture the depth and width of the USA?s financial system, we used both bank-based and marketbased financial development indices as proxies for bank-based and market-based financial systems. These indices were constructed from a number of bank- and market-based financial development indicators, using the method of means-removed average. Our empirical results reveal that both bank-based and market-based financial development have a positive impact on economic growth in the USA. These results apply irrespective of whether the regression analysis is conducted in the long run or in the short run. We, therefore, recommend that both pro-bank-based and pro-market-based financial sector development policies should be pursued in the USA - in order to bolster real sector growth and economic development.

scholarly journals Effects of COVID-19 on Indian Energy Consumption

2020 ◽  
Vol 12 (14) ◽  
pp. 5616 ◽  
Author(s):  
Kentaka Aruga ◽  
Md. Monirul Islam ◽  
Arifa Jannat
Keyword(s):  
Energy Consumption ◽  
Positive Impact ◽  
Indian Government ◽  
Ardl Model ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
North Eastern ◽  
Relaxed Energy ◽  
Positive Effect

Just after the Indian government issued the first lockdown rule to cope with the increasing number of COVID-19 cases in March 2020, the energy consumption in India plummeted dramatically. However, as the lockdown relaxed, energy consumption started to recover. In this study, we investigated how COVID-19 cases affected Indian energy consumption during the COVID-19 crisis by testing if the lockdown release had a positive impact on energy consumption and if richer regions were quicker to recover their energy consumption to the level before the lockdown. Using the autoregressive distributed lag (ARDL) model, the study reveals that a long-run relationship holds between the COVID-19 cases and energy consumption and that the COVID-19 cases have a positive effect on Indian energy consumption. This result indicates that as lockdown relaxed, energy consumption started to recover. However, such a positive impact was not apparent in the Eastern and North-Eastern regions, which are the poorest regions among the five regions investigated in the study. This implies that poorer regions need special aid and policy to recover their economy from the damage suffered from the COVID-19 crisis.

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