Economic growth,energy consumption and CO2 emissions in India: a disaggregated causal analysis

This study examines the long-run and short-run causal relationships among energy consumption, real gross domestic product (GDP) and CO₂ emissions using aggregate and disaggregate (sectoral) energy consumption measures utilising annual data from 1971 to 2011. The autoregressive distributed lag bounds test reveals that there is a long-run relationship among the variables concerned at both aggregate and disaggregate levels. The Toda–Yamamoto causality tests, however, reveal that the long-run as well short-run causal relationship among the variables is not uniform across sectors. The weight of evidences of the study indicates that there is short-run causality from electricity consumption to economic growth, and to CO₂ emissions. The results suggest that India should take appropriate cautious steps to sustain high growth rate and at the same time to control emissions of CO₂. Further, energy and environmental policies should acknowledge the sectoral differences in the relationship between energy consumption and real gross domestic product.     

Oil consumption, CO2 emission and economic growth in MENA countries

This study examines the impact of oil consumption on the economic growth of the MENA countries during the period 1980–2009. The panel model is employed in this study. Based on the cointegration test results, it was found that CO₂ emission, and oil consumption has a long run relationship with economic growth. Moreover, there is also a bi-directional Granger causality between oil consumption, CO₂ emission and economic growth in both the short run and the long run. The results of this study show clearly that oil consumption plays an important role in the economic growth of the MENA countries.     

The relationship between CO2 emissions and economic growth: The case of Korea with nonlinear evidence

Using STAR models, we investigate the nonlinear dynamic properties and the interdependence of CO₂ emissions and economic growth for Korea. The estimation results indicate that the growth rate of both CO₂ emissions and industrial production exhibit a significant nonlinear asymmetric dynamics. While the linear Granger causality test finds no causality in any direction, the results of the nonlinear Granger causality tests show a two-way causality between CO₂ emissions and economic growth. The strong mutual causation between CO₂ emissions and economic activities indicates that the economic impact from CO₂ mitigation is expected to be higher in Korea. This suggests that the appropriate energy and environmental policy be to mitigate CO₂ emissions while having less impact on the economy.     

Revisiting CO2 emissions convergence in G18 countries

This study revisits whether CO₂ emissions converge in G18 countries over the period of 1950–2013. To work on this empirical analysis, we employ a more powerful quantile unit root test with per capita CO₂ emissions. While conventional unit root tests fail to reject convergence in CO₂ emissions in these G18 countries, quantile unit root test results demonstrate CO₂ emissions converged in 5 of these G18 countries (i.e., Australia, Brazil, Canada, Germany, and India). Our empirical results have important policy implications for the governments of G18 countries to direct efficient and effective energy policies to reduce the CO₂ emissions.     

A multivariate causality test of carbon dioxide emissions,energy consumption and economic growth in China

This paper uses multivariate co-integration Granger causality tests to investigate the correlations between carbon dioxide emissions, energy consumption and economic growth in China. Some researchers have argued that the adoption of a reduction in carbon dioxide emissions and energy consumption as a long term policy goal will result in a closed-form relationship, to the detriment of the economy. Therefore, a perspective that can make allowances for the fact that the exclusive pursuit of economic growth will increase energy consumption and CO₂ emissions is required; to the extent that such growth will have adverse effects with regard to global climate change.     

An econometric study of CO2 emissions,energy consumption,income and foreign trade in Turkey

This study attempts to empirically examine the dynamic causal relationships between carbon emissions, energy consumption, income, and foreign trade in the case of Turkey using the time-series data for the period 1960–2005. This research tests the interrelationship between the variables using the bounds testing to cointegration procedure. The bounds test results indicate that there exist two forms of long-run relationships between the variables. In the case of first form of long-run relationship, carbon emissions are determined by energy consumption, income and foreign trade. In the case of second long-run relationship, income is determined by carbon emissions, energy consumption and foreign trade. An augmented form of Granger causality analysis is conducted amongst the variables. The long-run relationship of CO₂ emissions, energy consumption, income and foreign trade equation is also checked for the parameter stability. The empirical results suggest that income is the most significant variable in explaining the carbon emissions in Turkey which is followed by energy consumption and foreign trade. Moreover, there exists a stable carbon emissions function. The results also provide important policy recommendations.     

Determinants of variation in household CO2 emissions between and within countries

Variation in household CO₂ emissions between and within countries may have important consequences for the equity dimension of climate policies. In this study we aim to identify some determinants of national household CO₂ emissions and their distribution across income groups. For that purpose, we quantify the CO₂ emissions of households in the Netherlands, UK, Sweden and Norway around the year 2000 by combining a hybrid approach of process analysis and input–output analysis with data on household expenditures. Our results show that average households in the Netherlands and the UK give rise to higher amounts of CO₂ emissions than households in Sweden and Norway. Moreover, CO₂ emission intensities of household consumption decrease with increasing income in the Netherlands and the UK, whereas they increase in Sweden and Norway. A comparison of the national results at the product level points out that country characteristics, like energy supply, population density and the availability of district heating, influence variation in household CO₂ emissions between and within countries.     

Energy consumption and CO2 emissions of the European glass industry

An in-depth analysis of the energy consumption and CO₂ emissions of the European glass industry is presented. The analysis is based on data of the EU ETS for the period 2005–2007 (Phase I). The scope of this study comprises the European glass industry as a whole and its seven subsectors. The analysis is based on an assignment of the glass installations (ca. 450) within the EU ETS to the corresponding subsectors and an adequate matching of the respective production volumes. A result is the assessment of the overall final energy consumption (fuel, electricity) as well as the overall CO₂ emissions (process, combustion and indirect emissions) of the glass industry and its subsectors in the EU25/27. Moreover, figures on fuel mix as well as fuel intensity and CO₂ emissions intensity (i.e. carbon intensity) are presented for each of the subsectors on aggregated levels and for selected EU Member States separately. The average intensity of fuel consumption and direct CO₂ emissions of the EU25 glass industry decreased from 2005 to 2007 by about 4% and amounted in 2007 to 7.8 GJ and 0.57 _tCO₂${\mathrm{t}}_{{\text{CO}}_{\mathrm{2}}}$ per tonne of saleable product, respectively. The economic energy intensity was evaluated with 0.46 toe/1000€ (EU27).     

Variables affecting energy efficiency and CO2 emissions in the steel industry

Specific energy consumption (SEC) is an energy efficiency indicator widely used in industry for measuring the energy efficiency of different processes. In this paper, the development of energy efficiency and CO₂ emissions of steelmaking is studied by analysing the energy data from a case mill. First, the specific energy consumption figures were calculated using different system boundaries, such as the process level, mill level and mill site level. Then, an energy efficiency index was developed to evaluate the development of the energy efficiency at the mill site. The effects of different production conditions on specific energy consumption and specific CO₂ emissions were studied by PLS analysis. As theory expects, the production rate of crude steel and the utilisation of recycled steel were shown to affect the development of energy efficiency at the mill site. This study shows that clearly defined system boundaries help to clarify the role of on-site energy conversion and make a difference between the final energy consumption and primary energy consumption of an industrial plant with its own energy production.     

Inequality in CO2 emissions across countries and its relationship with income inequality: A distributive approach

This paper analyzes the inequality in CO₂ emissions across countries (and groups of countries) and the relationship of this inequality with income inequality across countries for the period (1971–1999). The research employs the tools that are usually applied in income distribution analysis. The methodology used here gives qualitative and quantitative information on some of the features of the inequalities across countries that are considered most relevant for the design and discussion of policies aimed at mitigating climate change. The paper studies the relationship between CO₂ emissions and GDP and shows that income inequality across countries has been followed by an important inequality in the distribution of emissions. This inequality has diminished mildly, although the inequality in emissions across countries ordered in the increasing value of income (inequality between rich and poor countries) has diminished less than the “simple” inequality in emissions. Lastly, the paper shows that the inequality in CO₂ emissions is mostly explained by the inequality between groups with different per capita income level. The importance of the inequality within groups of similar per capita income is much lower and has diminished during the period, especially in the low middle income group.     

Modeling the CO2 emissions, energy use, and economic growth in Russia

This paper applies the co-integration technique and causality test to examine the dynamic relationships between pollutant emissions, energy use, and real output during the period between 1990 and 2007 for Russia. The empirical results show that in the long-run equilibrium, emissions appear to be energy use elastic and output inelastic. This elasticity suggests high energy use responsiveness to changes in emissions. The output exhibits a negative significant impact on emissions and does not support EKC hypothesis. These indicate that both economic growth and energy conservation policies can reduce emissions and no negative impact on economic development. The causality results indicate that there is a bidirectional strong Granger-causality running between output, energy use and emissions, and whenever a shock occurs in the system, each variable makes a short-run adjustment to restore the long-run equilibrium. The average speed of adjustment is as low as just over 0.26 years. Hence, in order to reduce emissions, the best environmental policy is to increase infrastructure investment to improve energy efficiency, and to step up energy conservation policies to reduce any unnecessary waste of energy. That is, energy conservation is expected to improve energy efficiency, thereby promoting economic growth.     

The impact of household consumption on energy use and CO2 emissions in China

In this paper, the consumer lifestyle approach is applied to analyze the impact of consumption by urban and rural households on energy use and CO₂ emissions for different regions and income levels in China. Grey Model is used to compare the relationship between energy consumption, consumption expenditure and CO₂ emissions for different lifestyles. The results show that direct energy consumption is diverse for urban households and simple for rural households in China. Direct energy consumption and CO₂ emissions are increasing faster for urban than for rural households. Indirect energy consumption and CO₂ emissions for urban households are much greater than the direct consumption values. The total indirect energy consumption and CO₂ emissions differ by regions and the structures are different, but the latter differences are not obvious. The impact of household income is enormous. Indirect energy consumption and CO₂ emissions are higher for high-income than for low-income households. The structural difference for indirect energy consumption and CO₂ emissions for households with different income levels is significant. The higher the income, the more diverse is the energy consumption and CO₂ emission structure. The structures for indirect energy use and CO₂ emissions are diverse for urban households, but simple for rural households.     

Multivariate Granger causality between CO2 emissions, energy consumption, FDI (foreign direct investment) and GDP (gross domestic product): Evidence from a panel of BRIC (Brazil, Russian Federation, India, and China) countries

This paper addresses the impact of both economic growth and financial development on environmental degradation using a panel cointegration technique for the period between 1980 and 2007, except for Russia (1992-2007). In long-run equilibrium, CO₂ emissions appear to be energy consumption elastic and FDI inelastic, and the results seem to support the Environmental Kuznets Curve (EKC) hypothesis. The causality results indicate that there exists strong bidirectional causality between emissions and FDI and unidirectional strong causality running from output to FDI. The evidence seems to support the pollution haven and both the halo and scale effects. Therefore, in attracting FDI, developing countries should strictly examine the qualifications for foreign investment or to promote environmental protection through the coordinated know-how and technological transfer with foreign companies to avoid environmental damage. Additionally, there exists strong output-emissions and output-energy consumption bidirectional causality, while there is unidirectional strong causality running from energy consumption to emissions. Overall, the method of managing both energy demand and FDI and increasing both investment in the energy supply and energy efficiency to reduce CO₂ emissions and without compromising the country’s competitiveness can be adopted by energy-dependent BRIC countries.     

CO2 emissions,energy consumption and economic growth in China: A panel data analysis

This paper examines the causal relationships between carbon dioxide emissions, energy consumption and real economic output using panel cointegration and panel vector error correction modeling techniques based on the panel data for 28 provinces in China over the period 1995–2007. Our empirical results show that CO₂ emissions, energy consumption and economic growth have appeared to be cointegrated. Moreover, there exists bidirectional causality between CO₂ emissions and energy consumption, and also between energy consumption and economic growth. It has also been found that energy consumption and economic growth are the long-run causes for CO₂ emissions and CO₂ emissions and economic growth are the long-run causes for energy consumption. The results indicate that China's CO₂ emissions will not decrease in a long period of time and reducing CO₂ emissions may handicap China's economic growth to some degree. Some policy implications of the empirical results have finally been proposed.     

Electricity sector reforms in four Latin-American countries and their impact on carbon dioxide emissions and renewable energy

This paper analyzes carbon dioxide (CO₂) emissions related to energy consumption for electricity generation in four Latin-American countries in the context of the liberalization process. From 1990 to 2006, power plants based on renewable energy sources decreased its share in power installed capacity, and the carbon index defined as CO₂ emission by unit of energy for electricity production stayed almost constant for all countries with the exception of Colombia, where the index reduced due to increase in hydroelectricity generation in the last years. The paper also presents a new set of policies to promote renewable energy sources that have been developed in the four countries. The paper concludes that restructuring did not bring about environmental benefits related to a decrease in CO₂ emissions because this depend on the existence of committed policies, and dedicated institutional and regulatory frameworks.     

CO2 emissions from electricity generation in seven Asia-Pacific and North American countries: A decomposition analysis

The Logarithmic Mean Divisia Index (LMDI) method of complete decomposition is used to examine the role of three factors (electricity production, electricity generation structure and energy intensity of electricity generation) affecting the evolution of CO₂ emissions from electricity generation in seven countries. These seven countries together generated 58% of global electricity and they are responsible for more than two-thirds of global CO₂ emissions from electricity generation in 2005. The analysis shows production effect as the major factor responsible for rise in CO₂ emissions during the period 1990–2005. The generation structure effect also contributed in CO₂ emissions increase, although at a slower rate. In contrary, the energy intensity effect is responsible for modest reduction in CO₂ emissions during this period. Over the 2005–2030 period, production effect remains the key factor responsible for increase in emissions and energy intensity effect is responsible for decrease in emissions. Unlike in the past, generation structure effect contributes significant decrease in emissions. However, the degree of influence of these factors affecting changes in CO₂ emissions vary from country to country. The analysis also shows that there is a potential of efficiency improvement of fossil-fuel-fired power plants and its associated co-benefits among these countries.     

Causal relationship between nuclear energy consumption and economic growth: A multi-country analysis

This paper attempts to investigate the causal relationship between nuclear energy consumption and economic growth using the data from six countries among 20 countries that have used nuclear energy for more than 20 years until 2005. To this end, time-series techniques including the tests for unit roots, co-integration, and Granger-causality are employed to Argentina, France, Germany, Korea, Pakistan, and Switzerland. The main conclusion is that the causal relationship between nuclear energy consumption and economic growth is not uniform across countries. In the case of Switzerland, there exists bi-directional causality between nuclear energy consumption and economic growth. This means that an increase in nuclear energy consumption directly affects economic growth and that economic growth also stimulates further nuclear energy consumption. The uni-directional causality runs from economic growth to nuclear energy consumption without any feedback effects in France and Pakistan, and from nuclear energy to economic growth in Korea. However, any causality between nuclear energy consumption and economic growth in Argentina and Germany is not detected.     

Implications of process energy efficiency improvements for primary energy consumption and CO2 emissions at the national level

The improvement of energy efficiency is seen as one of the most promising measures for reducing global CO₂ emissions. However, the emission reduction potential may seem different from the industrial plant and policy-maker’s perspectives. This paper evaluates the influences of process heat conservation on CHP electricity production, primary energy consumption and CO₂ emissions from both the mill site and national perspectives. The results indicate that heat conservation in an industrial process may lead to varying results in primary energy consumption and CO₂ emissions, depending on the form of marginal heat production used at the mill site. In the CHP process, reduction of the heat load lowers electricity production, and this reduction may have to be compensated for at the national level. Therefore, the energy conservation potential in industry has to be evaluated by taking into account the connections to the outside society, which means that a wider system boundary than a mill site has to be used. This study demonstrates by theoretical analysis and case mill studies the magnitude of the effects of system boundary definition when evaluating the contribution of an individual energy efficiency investment towards fulfilling the commitment to reduce CO₂ emissions at the national level.     

Evaluating the interplays among economic growth and energy consumption and CO2 emission of China during 1990-2007

The interplays among economy and energy and environment have been widely concerned. This paper put forward several indicators to quantify the relationships among economic growth and energy consumption and CO₂ emission. As an example, these indicators were applied to evaluate the comprehensive performances of China during 1990-2007. The results show that Chinese people has been living a better life with Chinese rapid economic growth but not synchronously in urban and rural areas. Non-carbon energy resources share has increased; however, fossil energy resources have still acted as the main driver for Chinese economic growth during this period. Technical progress has improved the fossil energy efficiency of Chinese economic activity, which leads to CO₂ emission per unit GDP and CO₂ emission per capita unit GDP dropping simultaneously; however, the two indicators’ annual decline rates become smaller and smaller, which reflects that technical progress’ role is dropping and economic scale's effect is climbing. People's survival has a rising contribution to CO₂ emission. CO₂ emission per capita has increased, which shows that economic scale has greater impact on CO₂ emission than technical progress does. Relatively speaking, Chinese development patterns have become more and more sustainable during this period. Finally, based on the related issues being discussed, some corresponding suggestions are put forward for Chinese government to further coordinate the relationship among economic development and energy consumption and CO₂ emission. The proposed indicators can form a set of useful tool for policy-makers to promote the harmonious development of economy and energy and environment in different regions and countries.     

Energy consumption and economic growth revisited in African countries

The aim of this paper is to provide new empirical evidence on the relationship between energy consumption and economic growth for 21 African countries over the period from 1970 to 2006, using recently developed panel cointegration and causality tests. The countries are divided into two groups: net energy importers and net energy exporters. It is found that there exists a long-run equilibrium relationship between energy consumption, real GDP, prices, labor and capital for each group of countries as well as for the whole set of countries. This result is robust to possible cross-country dependence and still holds when allowing for multiple endogenous structural breaks, which can differ among countries. Furthermore, we find that decreasing energy consumption decreases growth and vice versa, and that increasing energy consumption increases growth, and vice versa, and that this applies for both energy exporters and importers. Finally, there is a marked difference in the cointegration relationship when country groups are considered.