Multivariate granger causality between CO2 emissions, energy intensity and economic growth in Portugal: evidence from cointegration and causality analysis

By Muhammad Shahbaz, Farooq Ahmed Jam, Sadia Bibi, Nanthakumar Loganathan. 2015

143 citations recorded by the source corpus.

AbstractThe present study aims to investigate the relationship between economic growth, energy intensity and CO2 emissions by incorporating financial development in CO2 emissions function using Portuguese annual data over the period of 1971–2011. The unit root problem of variables is examined by applying Zivot-Andrews unit root test and the ARDL bounds testing approach is for long run relationship. The direction of causal relationship between the series is examined by the VECM Granger causality approach and robustness of causality analysis is tested by innovative accounting approach (IAA).Our empirical evidence confirmed that the variables are cointegrated for long run relationship. The results exposed that economic growth and energy intensity increase CO2 emissions, while financial development condenses it. The VECM Granger causality analysis showed the feedback effect between energy intensity and CO2 emissions, while economic growth and financial development Granger cause CO2 emissions. The study sugges...

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

View Paper: https://www.semanticscholar.org/paper/e8c7fd1370210997cf0b4d634f56920f80e357fa

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Citations in the corpus

Estimation of Environmental Kuznets Curve for CO2 emission: Role of renewable energy generation in India (2018, background): “[20], and its functional form is given in Eq.”
Financial development and ecological footprint: A global panel data analysis (2019, result): “Likewise, dealing with the time series analysis the study by Dar & Asif (2018) for Turkey, Shahbaz et al. (2016) for Portugal, and Mohammed et al. (2019) for Venezuela reported the similar findings.”
The role of renewable versus non-renewable energy to the level of CO2 emissions a panel analysis of sub- Saharan Africa’s Βig 10 electricity generators (2018, background): “…2015; Wang et al., 2016; Seker et al, 2015; Gokmenoglu and Taspinar, 2015; Tang and Tan, 2015; Boluk and Mert, 2015; Destek and Ozsoy, 2015; Shahbaz et al., 2016 Bento and Moutinho, 2016; Sugiawan and Managi, 2016) and those that look at country groups and employ panel data techniques…”
Energy consumption, tourism development, and environmental degradation in Sri Lanka (2017, background): “Energy consumption is identified as the key factor of environmental degradation (for instance, Nasir and Rehman, 2011; Shahbaz et al., 2016).”
Financial development and environmental quality: The way forward (2016, methodology): “In the case of Pakistan, the present study extends the CO2 emissions function used by Nasir and Rehman (2011) and Shahbaz et al. (2012) by including financial development as a supplementary determinant of economic growth and hence CO2 emissions.”
Environmental degradation in France: The effects of FDI, financial development, and energy innovations (2018, unknown): “The existing evidence on the role of the financial development in affecting environmental degradation is mixed and inconclusive ( Tamazian and Rao, 2010; Ozturk and Acaravci, 2013; Shahbaz et al., 2016; Bekhet 2017; Salahuddin et al., 2018).”
Investigating the non-linear relationship between urbanization and CO2 emissions: An empirical analysis (2019, methodology): “This result is in agreement with Shabaz et al. (2016) for Portugal.”
Environmental degradation and economic growth: evidence for a developing country (2017, background): “…(Hossain 2012); unemployment (Ozturk and Acaravci 2010); fixed gross capital formation and employment (Menyah and Wolde-Rufael 2010); the economic structure and the price of energy (Azlina 2011); population (Bhattacharyya and Ghoshal 2009), financial development (Shahbaz et al. 2015); among others.”