Economic growth, CO2 emissions and energy consumption: What causes what and where?

By A. Acheampong. Energy Economics, 2018

739 citations recorded by the source corpus.

This paper applies panel vector autoregression (PVAR) along with a system-generalized method of moment (System-GMM) to examine the dynamic causal relationship between economic growth, carbon emissions and energy consumption for 116 countries over the period 1990–2014. Using multivariate model, the empirical results from this study have established key relationships which have important policy implications. First, at the global and regional levels, economic growth does not cause energy consumption. Second, with the exception of the global and Caribbean-Latin America, economic growth has no causal impact on carbon emissions, however, economic growth has a negative impact on carbon emissions at the global level and the Caribbean-Latin America. Third, carbon emissions positively cause economic growth. Fourth, energy consumption positively causes economic growth in sub-Saharan Africa while it negatively causes economic growth at the global, Middle East and North Africa (MENA), Asia-Pacific and Caribbean-Latin America. Fifth, energy consumption positively causes carbon emissions in MENA but causes carbon emissions negatively in sub-Saharan Africa and Caribbean-Latin America. Lastly, with the exception of MENA and the global sample, carbon emissions do not cause energy consumption. The impulse response function shows evidence of Environmental Kuznets curve at the global scale and sub-Saharan Africa. The policy implications of this paper are discussed.

Subfields: Economics and Econometrics, Pollution, Renewable Energy, Sustainability and the Environment

View Paper: https://www.semanticscholar.org/paper/6455d15542dd7fcb4dd1abdf90ef7db5ab6f7fd2

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Citations in the corpus

The implications of renewable and non-renewable energy generating in Sub-Saharan Africa: The role of economic policy uncertainties (2021, background): “One such is the work of Acheampong (2018), who adopted a panel autoregression alongside the system-generalized method of moments to examine the causal relationship between GDP growth, carbon emissions and energy consumption in 116 countries. The finding that a positive shock to GDP raises both energ”
Does financial development mitigate carbon emissions? Evidence from heterogeneous financial economies (2020, background): “…effect; 𝜀𝜀 𝑖𝑖𝑖𝑖 is the stochastic error term; 𝑋𝑋 is a set of control variables such as population size ( lnTPOP ) (see Dong et al., 2018; Zhu & Peng, 2012), trade openness ( lnOPEN ) (see Acheampong, 2018; Solarin, Al-Mulali, Musah, & Ozturk, 2017) and urbanization ( lnURPOPG )…”
The Sustainable Approach to Corporate Social Responsibility: A Global Analysis and Future Trends (2019, background): “For this reason, the aim is to maintain economic growth while adjusting it to the limitations of nature as a renewable resource [31].”
Trade Openness and Carbon Emissions: Evidence from Belt and Road Countries (2019, methodology): “Acheampong [49] employed panel vector autoregression (PVAR) together with a system generalized method of moment (GMM) to investigate the changing causality between CO2 emissions, energy consumption, and economic growth in 116 nations between 1990 and 2014.”