scholarly journals Energy Consumption and Economic Growth: Further Evidence from Taiwan

2017 ◽  
Vol 9 (7) ◽  
pp. 165
Author(s):  
Chung-Wei Kao ◽  
Jer-Yuh Wan
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Energy Conservation ◽  
Energy Use ◽  
Threshold Model ◽  
Policy Implications ◽  
Economic Activities ◽  
Causality Test ◽  
Long Run ◽  
The Business Cycle

This paper investigates the nonlinear relationship between energy consumption and GDP in Taiwan. By applying the method of Gonzalo and Pitarakis (2006), we consider the possibility of significant threshold effects within the long-run relationship between the two variables, where the effect is trigged by changes in the phase of the business cycle. The Granger-causality test in a threshold model indicates the relationship between energy consumption and GDP is regime-dependent. A bidirectional relationship between these two variables is observed in the contractionary regime, implying that energy serves as an engine of economic growth and that reductions in energy use will have adverse effects on economic activities. On the other hand, a unidirectional causality running from GDP to energy consumption is detected in the expansionary regime. It indicates energy conservation is feasible in this regime with little or no detrimental effects on economic growth. The policy implications are that energy use and economic growth are jointly reinforcing each other during recessionary periods. However, in periods of high economic growth when energy consumption cannot bring about economic growth, energy conservation policies should be adopted with more aggressive thinking.

Economic Growth, Energy Consumption and Carbon Emissions in China: A Cointegration Analysis

2013 ◽  
Vol 291-294 ◽  
pp. 1616-1619 ◽  
Author(s):  
Qun Wei Wang ◽  
Cheng Ling Cai ◽  
Dan Lu
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Carbon Emissions ◽  
Carbon Dioxide Emissions ◽  
Cointegration Analysis ◽  
Policy Implications ◽  
Causality Test ◽  
Distributed Lag ◽  
Long Run ◽  
Growth Energy

This paper studies the relationships between economic growth, energy consumption and carbon dioxide emissions using an autoregressive distributed lag (ARDL) procedure and Engle-Granger causality test in China over the period 1965-2011. The empirical results show that GDP, energy and carbon emissions have appeared to be cointegrated. Moreover, there exists unidirectional causality from energy consumption to economic growth and carbon emissions to economic growth in short run. It has also been found that energy consumption and carbon emissions promote economic growth in long run. Some policy implications have been proposed finally.

scholarly journals Nexus Between Financial Development, FDI, Globalization, Energy Consumption and Environment: Evidence From BRI Countries

2021 ◽  
Vol 9 ◽  
Author(s):  
Jie Lu ◽  
Muhammad Imran ◽  
Abdul Haseeb ◽  
Shah Saud ◽  
Mengyun Wu ◽  
...  
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Energy Consumption ◽  
Financial Development ◽  
Direct Investment ◽  
Policy Implications ◽  
Causality Test ◽  
Long Run ◽  
Integration Test ◽  
Belt And Road

This study explores the nexus between foreign direct investment, financial development, energy consumption, economic growth and globalization for a selected panel of Belt and Road Initiative (BRI) countries over the period 1990–2016. After employing appropriate panel unit root tests, the Westerlund co-integration test, the DSUR long-run panel estimation approach and the Dumitrescu-Hurlin panel causality test, the results reveal a significant long-run relationship among the analyzed variables. The DSUR results show that energy consumption is boosted by 0.023 and 0.790% when a 1% rise occurs in foreign direct investment and economic growth. A 1% increase in financial development and globalization reduces energy consumption by 0.049 and 0.621%, respectively. We also found bidirectional relationships of energy consumption with financial development and foreign direct investment with globalization for the selected sample of our study. A unidirectional causal relationship exists, moving from energy consumption towards both financial development and foreign direct investment. An increase in FDI, the introduction of energy-efficient technology, and development of the financial sector lead to sustainable economic growth. The findings reveal the need to formulate policies that promote energy efficiency among Belt and Road (BR) countries. The policy implications of this study are presented in the Conclusion.

scholarly journals INTERACTION BETWEEN ENERGY CONSUMPTION AND ECONOMIC GROWTH IN INDIA

2017 ◽  
Vol 5 (4) ◽  
pp. 62-71 ◽  
Author(s):  
Nandakumar ◽  
Devasia ◽  
Thomachan
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
World Bank ◽  
Energy Use ◽  
Annual Data ◽  
Sample Period ◽  
Development Indicators ◽  
Long Run ◽  
World Development

This Paper examines the relation between energy use and GDP percapita of India. It used the annual data from 1971-2013, obtained from World Development Indicators of World Bank for India. The variables used in this study are – Percapita GDP and Energy consumption in Kilograms of oil equivalent (Kgoe). The result shows long run relation between energy use and GDP percapita. The result also shows that Energy Use granger causes GDP percapita of India for the sample period.

scholarly journals CO2 Emissions, Energy Consumption, and Economic Growth: New Evidence in the ASEAN Countries

2019 ◽  
Vol 12 (3) ◽  
pp. 145 ◽  
Author(s):  
Vo ◽  
Vo ◽  
Le
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Granger Causality ◽  
Co2 Emissions ◽  
Causal Effect ◽  
The Philippines ◽  
Policy Implications ◽  
Renewable Energy Consumption ◽  
Long Run

The members of the Association of Southeast Asian Nations (ASEAN) have made several attempts to adopt renewable energy targets given the economic, energy-related, environmental challenges faced by the governments, policy makers, and stakeholders. However, previous studies have focused limited attention on the role of renewable energy when testing the dynamic link between CO2 emissions, energy consumption and renewable energy consumption. As such, this study is conducted to test a common hypothesis regarding a long-run environmental Kuznets curve (EKC). The paper also investigates the causal link between carbon dioxide (CO2) emissions, energy consumption, renewable energy, population growth, and economic growth for countries in the region. Using various time-series econometrics approaches, our analysis covers five ASEAN members (including Indonesia, Myanmar, Malaysia, the Philippines, and Thailand) for the 1971–2014 period where required data are available. Our results reveal no long-run relationship among the variables of interest in the Philippines and Thailand, but a relationship does exist in Indonesia, Myanmar, and Malaysia. The EKC hypothesis is observed in Myanmar but not in Indonesia and Malaysia. Also, Granger causality among these important variables varies considerably across the selected countries. No Granger causality among carbon emissions, energy consumption, and renewable energy consumption is reported in Malaysia, the Philippines, and Thailand. Indonesia experiences a unidirectional causal effect from economic growth to renewable energy consumption in both short and long run and from economic growth to CO2 emissions and energy consumption. Interestingly, only Myanmar has a unidirectional effect from GDP growth, energy consumption, and population to the adoption of renewable energy. Policy implications have emerged based on the findings achieved from this study for each country in the ASEAN region.

Renewable and non-renewable energy consumption and economic growth in the US: A Markov-Switching VAR analysis

2020 ◽  
pp. 0958305X2094403
Author(s):  
Emrah Ismail Cevik ◽  
Durmuş Çağrı Yıldırım ◽  
Sel Dibooglu
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Energy Demand ◽  
Fossil Fuels ◽  
The United States ◽  
Renewable Energy Consumption ◽  
Causality Test ◽  
Long Run ◽  
The Us

We examine the relationship between renewable and non-renewable energy consumption and economic growth in the United States. While the regime-dependent Granger causality test results for the non-renewable energy consumption and economic growth suggest bi-directional causality in both regimes, we cannot validate any causality between renewable energy consumption and economic growth. The US meets its energy demand from non-renewable sources; as such, renewable energy consumption does not seem to affect economic growth. Given the efficiency and productivity of renewable energy investments, we conclude that it is worthwhile to consider renewable energy inputs to replace fossil fuels given potential benefits in terms of global warming and climate change concerns. In this regard, increasing the R&D investments in the renewable energy sectors, increases in productivity and profitability of renewable energy investments are likely to accrue benefits in the long run.

The dynamic relationship between CO2 emission, international tourism and energy consumption in Pakistan: a cointegration approach

2019 ◽  
Vol 74 (4) ◽  
pp. 761-779 ◽  
Author(s):  
Yaping Liu ◽  
Tafazal Kumail ◽  
Wajahat Ali ◽  
Farah Sadiq
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Granger Causality ◽  
Environmental Quality ◽  
Energy Use ◽  
Ardl Model ◽  
Content Type ◽  
Dynamic Relationship ◽  
Long Run ◽  
Growth Energy

Purpose The present study aims to investigate the dynamic relationship between international tourist receipts, economic growth, energy use and carbon dioxide (CO2) emissions in Pakistan over the period 1980-2016. Many researchers have investigated the link between tourism and CO2 emissions, but there is no clear picture as the results are contradictory. This study is an attempt to compliment the literature related to tourism and environmental quality. Design/methodology/approach The study adopted the autoregressive distributed lagged (ARDL) model to investigate the short- and long-run estimates simultaneously. The study further applied Granger causality to find out the direction of causalities. To arrive at long-run robust estimates, the study used dynamic ordinary least squares (DOLS) model. Findings The results found that tourist receipts have no significant impact on environmental quality, while growth and energy consumption are the main determinants of CO2 emissions in Pakistan. The Granger causality test confirmed unidirectional causalities from GDP and energy consumption toward CO2 emissions, while tourist receipts do not affect environmental quality. DOLS technique confirmed the long-run estimates of ARDL model. Research limitations/implications The result of the study complements the literature by adding new evidence regarding the nexus of tourism and environment. Findings of the study are important for policymakers and regulatory bodies to place their focus on the development of tourism sector (services sector) rather than energy-intensive manufacturing activities to sustain the growth of the country in higher quartiles, as tourism receipts have no significant negative externalities toward environment, while energy use is one of the key determinants of environmental degradation. Originality/value This study used time series data over the period 1980-2016 for Pakistan to inspect the dynamic relationship between tourist receipts, economic growth, energy consumption and CO2 emissions.

Does Temperature Contribute to Environment Degradation? Pakistani Experience Based on Nonlinear Bounds Testing Approach

2020 ◽  
pp. 097215092091665 ◽  
Author(s):  
Muhammad Saeed Meo ◽  
Solomon Prince Nathaniel ◽  
Muhammad Murtaza Khan ◽  
Qasim Ali Nisar ◽  
Tehreem Fatima
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Carbon Emissions ◽  
Energy Use ◽  
Global Climate ◽  
Bounds Testing ◽  
Renewable Energy Consumption ◽  
Global Climate Changes ◽  
Long Run ◽  
Short Run

Many developing countries are acutely vulnerable to global climate changes. In Pakistan, carbon emissions are primarily contributed by the factor of energy production from oil, gas and coal. The objective of this study is to estimate the asymmetric impact of temperature, energy use, economic growth, water scarcity on CO2 emissions in Pakistan over their period of 1960–2016. Based on nonlinear bounds testing (NARDL) approach, it is confirmed that there is an asymmetric relationship between temperature and CO2 emission, while energy use, population growth and economic growth have a positive effect in the short run. In the long run, energy consumption and economic growth were found to increase emission, while a temperature decrease by 1 per cent leads to 5 per cent decrease in carbon emissions. Population and water availability also reduces emission in Pakistan. Further, the study also confirms the long-run relationship between the variables. The finding of the study noticeably supports the policy to increase renewable energy consumption.

scholarly journals The Relationship between Financial Development and Renewable Energy Consumption in South Asian Countries

2021 ◽  
Author(s):  
Sakib Amin ◽  
Farhan Khan ◽  
Ashfaqur Rahman
Keyword(s):  
Renewable Energy ◽  
Energy Consumption ◽  
Financial Development ◽  
Energy Use ◽  
Green Energy ◽  
Renewable Energy Consumption ◽  
Causality Test ◽  
Cross Sectional ◽  
Long Run ◽  
Cointegration Tests

Abstract We analyse how the financial development and green energy use are linked to the countries of South Asia from 1990 to 2018. Domestic credit to the private sector and renewable energy consumption is being used in this paper as indicators of financial development and the use of renewable energy. On the indication of cross-sectional dependency among the variables of the models, we apply second generation panel unit root tests and cointegration tests to check the stationarity properties and long-run cointegration relation among the variables. We find that variables are stationary at the first difference, and long-run cointegration exists. By applying robust dynamic heterogeneous and cross-section augmented estimators, we find that increase in GDP increases renewable energy consumption by 1.56-0.50%; however reduces by 0.07-0.03% after certain thresholds. Furthermore, increase in financial development, on average, reduces the propensity of renewable energy consumption by 0.15-0.07% in the long-run. On the other hand, the Dumitrescu-Hurlin panel causality test shows a unidirectional relationship from GDP to financial development and financial development to renewable energy consumption but not vice versa. We suggest that the selected countries revisit and restructure the renewable energy policy and emphasise institutional reforms to strengthen renewable energy development in the upcoming years.

scholarly journals The nexus between health status and health expenditure, energy consumption and environmental pollution: Empirical evidence from SAARC-BIMSTEC regions

2021 ◽  
Author(s):  
Mohammad Mafizur Rahman ◽  
Khosrul Alam
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Health Status ◽  
Environmental Pollution ◽  
Health Expenditure ◽  
Health Sector ◽  
Policy Implications ◽  
Causality Test ◽  
Cross Sectional ◽  
Public And Private

Abstract Background: The COVID-19 pandemic has highlighted the need for the betterment of health status, while also considering health expenditure, energy, and environmental issues. This paper examines the nexus between health status and health expenditure (both public and private), energy consumption and environmental pollution in the SAARC-BIMSTEC region.Methodology: We utilized the panel autoregressive distributed lag (ARDL) model, heterogeneous panel causality test, cross sectional dependence test, cointegration test and Pesaran cross sectional dependent (CADF) unit root test for obtaining estimated results from data over 16 years (2002-2017). Results: Our results authorize the cointegration among the variables used, where energy consumption, public and private health expenditure and economic growth have positive and statistically significant effects and environmental pollution has both negative and significant effects on the health status of these regions in the long-term, but no panel wise significant impact is found in the short-term. Two-way causal relationships between health status and environmental pollution, public and private health expenditure, economic growth and sanitation facilities, and a one-way causality running from energy consumption to health status are presented. Conclusions: The improved health status in the SAARC-BIMSTEC region needs to be protected by articulating the effective policies on both public and private health expenditures, environmental pollution, energy consumption, and economic growth. The attained results are theoretically and empirically consistent, and have important policy implications in the health sector.

FINANCIAL INTEGRATION, ENERGY CONSUMPTION AND ECONOMIC GROWTH IN VIETNAM

2020 ◽  
Vol 15 (03) ◽  
pp. 2050010
Author(s):  
NGUYEN MINH HA ◽  
BUI HOANG NGOC ◽  
MICHAEL MCALEER
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Financial Integration ◽  
Positive Impact ◽  
Vector Autoregressions ◽  
Bounds Testing ◽  
Causality Test ◽  
Empirical Results ◽  
Long Run ◽  
The Impact

The paper investigates the impact of financial integration and energy consumption on economic growth in Vietnam during the period 1986–2017. By applying the Autoregressive Distributed Lag ARDL) approach proposed by Pesaran et al. [Pesaran, MH, Y Shin and RJ Smith (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16(3), 289–326.] and the bounds cointegration test, the empirical results show the existence of long-term cointegration among all the variables, and that an increase in financial integration leads to an increase in economic growth in the long run. There is a positive impact of energy consumption on growth in both the short run and long run. The causality test of Toda and Yamamoto [Toda, HY and T Yamamoto (1995). Statistical inference in vector autoregressions with possibly integrated processes. Journal of Econometrics, 66(1–2), 225–250.] confirm that there is bi-directional causality between the pairs, financial integration and economic growth, and energy consumption and growth, which support the feedback hypothesis. However, there is only uni-directional causality from energy consumption to financial integration. The empirical results should be of major empirical importance for public policy decision-makers to plan sustainable development goals for Vietnam.

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