scholarly journals Investigating the Linkage between Economic Growth and Environmental Sustainability in India: Do Agriculture and Trade Openness Matter?

2021 ◽  
Vol 13 (9) ◽  
pp. 4753
Author(s):  
Ayhan Orhan ◽  
Tomiwa Sunday Adebayo ◽  
Sema Yılmaz Genç ◽  
Dervis Kirikkaleli
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Co2 Emissions ◽  
Environmental Sustainability ◽  
Trade Openness ◽  
Sampling Period ◽  
Wavelet Coherence ◽  
Causality Test ◽  
Gradual Shift ◽  
Long Run

This paper assesses the linkage between CO2 emissions and economic growth while taking into account the role of energy consumption, agriculture, and trade openness in India. Using data covering the period between 1965 and 2019, the Bayer and Hanck cointegration and Gradual shift causality tests are applied to assess these economic indicators relationships’. Furthermore, we employed the wavelet coherence test. The advantage of the wavelet coherence test is that it differentiates between short-, medium-, and long-run dynamics over the entire sampling period. To the best of the authors’ understanding, the present paper is the first to apply wavelet analysis to investigate this relationship by incorporating agriculture as a determinant of environmental degradation. The empirical outcomes show that all variables appear to be highly correlated with CO2 emissions with the exemption of trade openness. This is further affirmed by the Gradual shift causality test, which shows that agriculture and energy consumption are crucial determinants of CO2 emissions in India. Accordingly, adequate policy measures are proposed based on these findings.

scholarly journals The Imperativeness of Environmental Quality in China Amidst Renewable Energy Consumption and Trade Openness

2021 ◽  
Vol 13 (9) ◽  
pp. 5054
Author(s):  
Özgür Bayram Soylu ◽  
Tomiwa Sunday Adebayo ◽  
Dervis Kirikkaleli
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Co2 Emissions ◽  
Trade Openness ◽  
Wavelet Coherence ◽  
Energy Usage ◽  
Causality Test ◽  
Gradual Shift ◽  
Long Run ◽  
Multiple Wavelet Coherence

It is widely accepted that CO2 emissions are the primary cause of climate change and environmental destruction. China, the world’s biggest carbon emitter, is the subject of this research. Utilizing the wavelet tools (wavelet correlation, wavelet coherence, multiple wavelet coherence, and partial wavelet coherence), the present study intends to capture the time-frequency dependence between CO2 emissions and renewable energy, economic growth, trade openness, and energy usage in China between 1965 and 2019. The advantage of the wavelet tools is that they can differentiate between short, medium, and long-run dynamics over the period of study. Furthermore, the study utilized the gradual shift causality test to capture the causal interconnection between CO2 emissions and the regressors. The findings from Bayer and Hanck showed a long-run relationship among the variables of interest. Furthermore, the findings from the wavelet coherence test revealed a positive relationship between CO2 emissions and economic growth and energy usage at all frequencies. Although there is a weak negative relationship between renewable energy and CO2 emissions in the short run, there is no significant co-movement between CO2 emissions and trade openness. The outcomes of the partial and multiple wavelet coherence also give credence to the outcomes of the wavelet coherence test. Lastly, the gradual shift causality test revealed a one-way causality from energy usage and economic growth to CO2 emissions. Based on the findings, suitable policy suggestions were proposed.

scholarly journals Sustainability of Energy-Induced Growth Nexus in Brazil: Do Carbon Emissions and Urbanization Matter?

2021 ◽  
Vol 13 (8) ◽  
pp. 4371 ◽  
Author(s):  
Tomiwa Sunday Adebayo ◽  
Abraham Ayobamiji Awosusi ◽  
Jamiu Adetola Odugbesan ◽  
Gbenga Daniel Akinsola ◽  
Wing-Keung Wong ◽  
...  
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Co2 Emissions ◽  
Economic Performance ◽  
Trade Openness ◽  
Least Square ◽  
Wavelet Coherence ◽  
Gradual Shift ◽  
Long Run ◽  
Causality Tests

This study assesses the relationship between economic performance and environmental sustainability by taking into account the role of energy consumption, urbanization, and trade openness in Brazil by using data spanning from 1965 to 2019. The study is distinct from previously documented studies in literature in terms of scope for Brazil, where few entries have been recorded. The major objectives are to address the questions: (a) Is there a long-run connection between the variables under consideration? (b) Can CO2 emissions, trade openness, and energy consumption predict economic performance of Brazil? (c) What is the connection between economic growth and the independent variables at different frequencies and time-period? Furthermore, the study utilized dynamic ordinary least square (DOLS), fully modified ordinary least square (FMOLS), Maki Cointegration, and autoregressive distributed lag (ARDL) to capture the long-run association between the variables of interest. Also, we used the Wavelet coherence and Gradual-shift causality tests to capture the causal linkage between economic growth and the regressors. The advantage of the wavelet coherence test is that it can capture causal linkage between series at different frequencies and periods. The outcome of both Maki cointegration and ARDL bounds testing to cointegration affirms the presence of long-run interaction among the parameters of interest. Furthermore, the outcomes of the DOLS and FMOLS revealed that energy consumption, CO2 emissions, and urbanization exert positive impacts on economic growth in Brazil while there is no significant connection between trade openness and economic growth. Moreover, Gradual shift causality test outcomes disclosed that urbanization, trade openness, CO2 emissions and energy usage can predict the economic performance of Brazil. The outcomes of the wavelet coherence test give credence to the FMOLS, DOLS, and Gradual shift causality tests.

Investigating the Causal Linkage Among Economic Growth, Energy Consumption and CO2 Emissions in Thailand: An Application of the Wavelet Coherence Approach

2020 ◽  
Vol 10 (1) ◽  
pp. 17-26 ◽  
Author(s):  
Tomiwa Sunday Adebayo ◽  
Gbenga Daniel Akinsola
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Co2 Emissions ◽  
Time Series Data ◽  
Wavelet Coherence ◽  
Series Data ◽  
Energy Usage ◽  
Positive Correlation ◽  
Long Run ◽  
Growth Energy

The study aims to explore the causal linkage between CO2 emissions, economic growth and energy consumption in Thailand utilizing the wavelet coherence approach, conventional Granger and the Toda-Yamamoto causality techniques. In this study, In this study, time-series data spanning the period between 1971 and 2018 were used. No prior study has used the wavelet coherence approach to collect information on the association and causal interrelationship among these economic variables at different frequencies and timeframes in Thailand. The study objectives are structured to answer the following question: Does economic growth and energy consumption lead to CO2 emissions in Thailand?. The findings revealed that: (a) Changes in economic growth led to changes in CO2 emissions in Thailand at different frequencies (different scales) between 1971 and 2018. (b) A bidirectional causal relationship between CO2 emissions and energy consumption. (c) A positive correlation between CO2 emissions and energy usage in the short and long-run between 1971 and 2018. (d) A positive correlation between GDP growth and CO2 emissions in the short and long-run between 1971 and 2018. The study suggested that Thailand should initiate stronger policies towards enhancing the efficiency of energy and energy-usage programs to minimize unnecessary energy waste.

Do International Tourism, Structural Changes, Trade Openness and Economic Growth Matter in determining CO2 emissions in Pakistan?

2020 ◽  
Author(s):  
Wajahat Alia ◽  
Farah Sadiqb ◽  
Tafazal Kumail ◽  
As’ad Aburumman
Keyword(s):  
Economic Growth ◽  
International Trade ◽  
Structural Change ◽  
Co2 Emissions ◽  
Structural Changes ◽  
Trade Openness ◽  
Causality Test ◽  
Long Run ◽  
International Tourist

The present study investigates the role of international tourist arrivals, structural change, consumption of energy, international trade and economic growth on CO2 emissions in Pakistan over a period of 1980-2017. The study employed ARDL model which revealed that there is a strong positive long-run association between CO2 emission and its determinants except for structural changes and trade which have no significant impact on CO2 emissions. Results reveal that tourism activities in Pakistan are environment friendly and it can add to preserve the scenic areas and major visitors spots in the country to attract more visitors to increase the revenue of the country. The study further applied Granger causality test and ratifies unidirectional causality from structural change, international tourist arrivals and consumption of energy towards CO2 except from international trade. Moreover, this study employed DOLS technique to get long-run robust estimates.

scholarly journals The Effect of Energy Consumption and Economic Growth on Environmental Sustainability in the GCC Countries: Does Financial Development Matter?

Energies ◽  
2021 ◽  
Vol 14 (18) ◽  
pp. 5897
Author(s):  
Hala Baydoun ◽  
Mehmet Aga
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Co2 Emissions ◽  
Financial Development ◽  
Environmental Sustainability ◽  
Unit Root ◽  
Kuznets Curve ◽  
Causality Test ◽  
Cross Sectional ◽  
Gcc Countries

Achieving environmental sustainability whilst minimizing the climate change effect has become a global endeavor. Hence, this study examined the effect of energy consumption, economic growth, financial development, and globalization on CO2 emissions in the Gulf Cooperation Council (GCC) countries. The research utilized a dataset stretching from 1995 to 2018. In a bid to investigate these associations, the study applied cross-sectional dependence (CSD), slope heterogeneity (SH), Pesaran unit root, Westerlund cointegration, cross-sectionally augmented autoregressive distributed lag (CS-ARDL), and Dumitrescu and Hurlin (DH) causality approaches. The outcomes of the CSD and SH tests indicated that using the first-generation techniques produces misleading results. The panel unit root analysis unveiled that the series are I (1). Furthermore, the outcomes of the cointegration test revealed a long-run association between CO2 emissions and the regressors, suggesting evidence of cointegration. The findings of the CS-ARDL showed that economic growth and energy consumption decrease environmental sustainability, while globalization improves it. The study also validated the environmental Kuznets curve (EKC) hypothesis for GCC economies. In addition, the results of the DH causality test demonstrated a feedback causality association between economic growth and CO2 emissions and between financial development and CO2 emissions. Moreover, there is a one-way causality from energy consumption and globalization to CO2 emissions in GCC economies. According to the findings, environmental pollution in GCC countries is output-driven, which means that it is determined by the amount of energy generated and consumed.

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 Carbon Emissions and Income Trajectory in Eight Heterogeneous Countries: The Role of Trade Openness, Energy Consumption and Population Dynamics

2013 ◽  
Vol 9 (2) ◽  
Author(s):  
OLUWOLE OWOYE ◽  
OLUGBENGA A. ONAFOWORA
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Co2 Emissions ◽  
Trade Openness ◽  
Policy Decision ◽  
Kuznets Curve ◽  
Ekc Hypothesis ◽  
Sample Mean ◽  
Long Run ◽  
Wide Range

This paper examines the long-run and dynamic temporal relationships between economic growth, energy consumption, population density, trade openness, and carbon dioxide    (CO2) emissions in Brazil, China, Egypt, Japan, Mexico, Nigeria, South Korea, and South Africa based on the environment Kuznets curve (EKC) hypothesis. We employ the ARDL Bounds test to cointegration and CUSUM and CUSUMSQ tests to ensure long-run cointegration and parameter stability.  The estimated results show that the inverted U-shaped EKC hypothesis holds in Japan and South Korea.  In the other six countries, the long-run relationship between economic growth and CO2 emissions follows an N-shaped trajectory and the estimated turning points are much higher than the sample mean. In addition, the results indicate that energy consumption Granger-causes both CO2 emissions and economic growth in all the countries.  An important implication of our findings is that it would be ill-advised for the policy decision makers to adopt the EKC postulate as the conceptual basis for policies favoring economic growth unconditionally. A wide range of policy initiatives that would induce increased demand for better environment quality and its sustainability should be explored in tandem with measures to spur economic growth.

Economic growth, carbon dioxide emissions and energy consumption in Algeria: a wavelet coherence approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sidi Mohammed Chekouri ◽  
Abderrahim Chibi ◽  
Mohamed Benbouziane
Keyword(s):  
Economic Growth ◽  
Carbon Dioxide ◽  
Energy Consumption ◽  
Power Spectrum ◽  
Carbon Dioxide Emissions ◽  
Wavelet Coherence ◽  
Causality Test ◽  
Content Type ◽  
Long Run ◽  
Growth Energy

PurposeThe world is nowadays facing major environmental damage and climate change everywhere. Carbon dioxide emissions are major causes of such change. It is in this respect that the current study provides a fresh insight into the dynamic nexus between energy consumption (EC), economic growth (EG) and CO2 emissions in Algeria, as it is considered as one of the top CO2 emitters in Africa.Design/methodology/approachThe authors use the wavelet approaches and Breitung and Candelon (2006) causality test to gauge the association between EC, EG and CO2 emissions over the period 1971–2018. Specifically, this study implements the wavelet power spectrum (WPS) to identify the power and variability of each variable at different time scales. The wavelet coherence, phase differences and partial wavelet coherence are also used to assess the co-movement and lead lag relationship between economic growth, energy consumption and CO2 emissions over different time scale. Finally, Breitung and Candelon (2006) causality test is used to find the causality among variables.FindingsThe wavelet power spectrum results indicate that economic growth, energy consumption and CO2 emissions share common strong variance in the medium and long run. Furthermore, the wavelet coherence results suggest that there is a significant co-movement between EG and CO2 emissions, and EG is the leading variable for CO2 emissions and EC. The results also unveil that both EG and EC cause CO2 emissions both in short and long run. The results suggest that Algeria should take suitable measures towards the promotion of renewable energy sources.Originality/valueThe present empirical study filled the literature gap of applying the wavelet approach and frequency domain spectral causality test to examine this relevant issue for Algeria.

scholarly journals Energy and Ecological Sustainability: Challenges and Panoramas in Belt and Road Initiative Countries

2018 ◽  
Vol 10 (8) ◽  
pp. 2743 ◽  
Author(s):  
Abdul Rauf ◽  
Xiaoxing Liu ◽  
Waqas Amin ◽  
Ilhan Ozturk ◽  
Obaid Rehman ◽  
...  
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Co2 Emissions ◽  
Trade Openness ◽  
Least Square ◽  
Belt And Road Initiative ◽  
Ordinary Least Square ◽  
Long Run ◽  
Fixed Capital Formation ◽  
Belt And Road

Innovation and globalization fosters a tendency towards multiparty collaboration and strategic contacts among nations. A similar path was followed by the Chinese administration in 2013, with its “Belt and Road Initiative” (BRI). The most important objective of the present fact-finding study was to demonstrate the links between economic growth, energy consumption, urbanization, gross fixed capital formation, trade openness, financial development and carbon emissions (ecological degradation) from a panel of 47 BRI economies, over a time span of 1980 to 2016. Dynamic panel estimations (dynamic ordinary least square (DOLS) and fully modified ordinary least square (FMOLS)) were engaged to examine the long-run links between the subjected variables. Synchronized outcomes for the full panel show that energy consumption, gross fixed capital formation, economic growth, financial development, and urbanization unfavorably led to environmental degradation (CO2 emissions). However, trade openness is negatively correlated with emissions. Furthermore, pairwise panel Granger causative estimations justified bi-directional links from all regressors towards CO2 emissions, except for trade openness, which had unidirectional ties with environmental quality. In cross-country, long-run assessments, different results were found, with CO2 emissions being greatly increased by economic growth in all countries and energy consumption in 30 countries; other predictors testified to some mixed interactions with CO2 emissions in the country-level examination. The reported investigation provides some noteworthy guiding principles and policy inferences aimed at governments and ecological supervisory administrations, suggesting assertive moves towards truncated used of carbon fossil fuels and dependency on renewable energy, establishing waste and water treatment plants, familiarizing themselves with the concept of a green economy, and making the general public aware of eco-friendly investments in BRI economies.

scholarly journals Linking Economic Growth, Urbanization, and Environmental Degradation in China: What Is the Role of Hydroelectricity Consumption?

2021 ◽  
Vol 18 (13) ◽  
pp. 6975
Author(s):  
Tomiwa Sunday Adebayo ◽  
Mary Oluwatoyin Agboola ◽  
Husam Rjoub ◽  
Ibrahim Adeshola ◽  
Ephraim Bonah Agyekum ◽  
...  
Keyword(s):  
Economic Growth ◽  
Environmental Degradation ◽  
Environmental Sustainability ◽  
Structural Break ◽  
Ekc Hypothesis ◽  
Bounds Testing ◽  
Causality Test ◽  
Distributed Lag ◽  
Gradual Shift ◽  
Long Run

Achieving environmental sustainability has become a global initiative whilst addressing climate change and its effects. Thus, this research re-assessed the EKC hypothesis in China and considered the effect of hydroelectricity use and urbanization, utilizing data from 1985 to 2019. The autoregressive distributed lag (ARDL) bounds testing method was utilized to assess long-run cointegration, which is reinforced by a structural break. The outcome of the ARDL bounds test confirmed cointegration among the series. Furthermore, the ARDL revealed that both economic growth and urbanization trigger environmental degradation while hydroelectricity improves the quality of the environment. The outcome of the ARDL also validated the EKC hypothesis for China. In addition, the study employed the novel gradual shift causality test to capture causal linkage among the series. The advantage of the gradual shift causality test is that it can capture gradual or smooth shifts and does not necessitate previous information of the number, form of structural break(s), or dates. The outcomes of the causality test revealed causal connections among the series of interest.

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