Dynamic relationship between CO2 emissions,energy consumption and economic growth in three North African countries

This paper investigated the causal relationship between energy consumption (EC), carbon dioxide (CO₂) emissions and economic growth for three selected North African countries. It uses a panel co-integration analysis to determine this econometric relationship using data during 1980–2012. Recently developed tests for panel unit root and co-integration tests are applied. In order to test the Granger causality, a panel Vector Error Correction Model is used. The conservation hypothesis is found; the short run panel results show that there is a unidirectional relationship from economic growth to EC. In addition, there is a unidirectional causality running from economic growth to CO₂ emissions. A unidirectional relationship from EC to CO₂ emissions is detected. Findings shown that there is a big interdependence between EC and economic growth in the long run, which indicates the level of economic activity and EC mutually influence each other in that a high level of economic growth leads to a high level of EC and vice versa. Similarly, a unidirectional causal relationship from EC to CO₂ emissions is detected. This study opens up new insights for policy-makers to design comprehensive economic, energy and environmental policy to keep the economic green and a sustainable environment, implying that these three variables could play an important role in the adjustment process as the system changes from the long run equilibrium.     

The renewable energy,CO2 emissions,and economic growth: VAR model

This paper provides an empirical analysis of CO₂ emissions and economic growth, renewable energy consumption, and energy consumption over the period 1975–2014 in Germany. This paper uses the autoregressive distributed lag (ARDL) approach of cointegration test and vector error-correction models. The unit root and cointegration tests show that the long-run relationship between CO₂ emissions and its determinants. The empirical results show that the findings do not support the environmental Kuznets curve between real GDP and CO₂ emissions. To estimate the shocks of renewable energy consumptions, the study applies the dynamic test of Impulse Response Function (IRF) under the VAR method. The increasing portion of renewable energy consumption in electricity generation would have no impacts on the environment. However, the hikes of renewable energy sources would incur more cost to electricity producers and shrivel up the growth of economies through the expansionary effect of industry’s consumption and private capital spending in the Germany’s economy.     

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.     

Energy consumption,CO2 emissions,and development in the UAE

This study investigated the impact of energy consumption and CO₂ emissions on the United Arab Emirates (UAE)’s economic and financial development. The vector autoregressive (VAR) model was applied. The results obtained in the study show that energy consumption and CO₂ emissions had a long-run relationship with the economic and financial development indicators in the UAE. It was also found that there was a significant causal relationship between energy consumption and CO₂ emissions on both economic and financial development indicator variables. The UAE is well known for its high economic and financial development owing to the fact that this country has achieved a fast economic growth in the last three decades. However, it is important that this country needs to increase its consumption of green energy to reduce CO₂ emissions.     

The dynamic impact of renewable energy consumption and financial development on CO2 emissions: For selected African countries

This empirical study examines the impact of economic growth, renewable energy, energy consumption, financial developments, trade openness, and urbanization growth on CO₂ emissions using the Pooled Mean Group (PMG) approach and Granger Causality in the EKC model a data set of 25 African countries over the period 1985–2015. The results showed that increases in renewable energy consumption and trade openness decrease CO₂ emissions, and the EKC hypothesis is supported for the African countries. Granger’s causality results indicated the presence of bidirectional causality between economic growth and financial development and CO₂ emissions. These results could support policymakers manage financial development and consider clean investments and other ecological aspects for sustainable urban development. The causality tests showed a unidirectional causality running from renewable energy consumption to CO₂ emissions in African countries.     

The effect of renewable energy and urbanization on CO2 emissions: A panel data

Europe has experienced fast-paced urbanization development over the past three decades. This paper empirically investigates the long-run equilibrium relationships and causal relationships among urbanization, renewable energy consumption, and CO₂ emissions, and this is important for EU countries’ future sustainable development. DOLS and FMOLS approaches are used for the period 1992–2014 .

Granger causality results show that there is a unidirectional relationship from CO₂ emissions to urbanization, and there is no causality between renewable energy consumption and CO₂ emissions. The results have important implications for EU policymakers on the path toward a sustainable society. Urbanization can have negative impacts on the natural environment with the net effect being hard in EU countries.     

The impact of coal consumption and CO2 emission on economic growth

This study examined the long-run and the causal relationship between total coal consumption, CO₂ emission, and GDP growth in China, the United States, India, Germany, Russia, South Africa, Japan, Australia, Poland, and South Korea. The panel model was employed during the period 1992–2009. The results showed that total coal consumption and CO₂ emission have a long-run relationship with the GDP growth. In addition, there was a short-run positive bidirectional causal relationship between total coal consumption and CO₂ emission. However, total coal consumption and CO₂ emission have no short-run or long-run causal relationship with GDP growth. Thus energy conservation policies on total coal consumption such as rationing energy consumption and controlling CO₂ emissions are likely to have no negative impact on the real output growth of the investigated 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.     

Modeling and forecasting the CO2 emissions, energy consumption, and economic growth in Brazil

This paper examines the dynamic relationships between pollutant emissions, energy consumption, and the output for Brazil during 1980-2007. The Grey prediction model (GM) is applied to predict three variables during 2008-2013. In the long-run equilibrium emissions appear to be both energy consumption and output inelastic, but energy is a more important determinant of emissions than output. This may be because Brazilian unsustainable land use and forestry contribute most to the country’s greenhouse gas emissions. The findings of the inverted U-shaped relationships of both emissions-income and energy consumption-income imply that both environmental damage and energy consumption firstly increase with income, then stabilize, and eventually decline. The causality results indicate that there is a bidirectional strong causality running between income, energy consumption and emissions. In order to reduce emissions and to avoid a negative effect on the economic growth, Brazil should adopt the dual strategy of increasing investment in energy infrastructure and stepping up energy conservation policies to increase energy efficiency and reduce wastage of energy. The forecasting ability of GM is compared with the autoregressive integrated moving average (ARIMA) model over the out-of-sample period between 2002 and 2007. All of the optimal GMs and ARIMAs have a strong forecasting performance with MAPEs of less than 3%.     

Electricity consumption,CO2 emission,and economic growth in the Middle East

This study examines the impact of electricity consumption on the economic growth in the Middle East countries during the period 1990–2008. The panel model is used in this study. Based on the cointegration test results, it is found that CO₂ emission and electricity consumption have a long-run relationship with economic growth. Moreover, there is also a bi-directional Granger causality between electricity consumption, CO₂ emission, and economic growth in both the short run and the long run. The results of this study show clearly that electricity consumption plays an important role in the economic growth of the Middle East countries.     

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.     

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.     

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.     

Urbanization,energy use,and CO2 emissions: A provincial-level analysis of China

Most previous studies have studied the relationship among urbanization, energy use, and CO₂ emissions. In this paper, Ordinary Least Square (OLS), Fixed Effects (FE), Prais–Winsten (PW), and First Differenced (FD) regression model approaches are applied to analyze the correlation among urbanization, energy use, and CO₂ emissions in the interior provinces and eastern/coastal provinces of China. The results show that the impact of urbanization on CO₂ emissions is not homogenous for all provinces. The eastern/coastal provinces have a different elasticity with respect to per capita Gross Domestic Product (GDP) and urbanization than the interior provinces. Also, it’s possible an Environmental Kuznets Curve (EKC) exists for the eastern provinces but not for China as a whole.     

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.     

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.     

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.