Carbon emissions, diverse energy usage and economic growth in south africa: Investigating existence of the environmental kuznets curve (EKC)

Abstract

This article examined the relationships involving carbon emissions, economic growth and energy consumption by employing the environmental Kuznets curve (EKC) in South Africa from 1980 to 2014. The auto regressive distributed lag approach and Johansen cointegration tests proved that the variables are cointegrated. The article findings show that combined (total energy consumption) and hydrocarbon gas and petroleum consumption demonstrates evidence of EKC in the long‐run. Other separated data (primary coal, secondary coal, and electricity consumption) show no evidence of the EKC in the long‐run. Primary coal, secondary coal, electricity and hydrocarbon gas consumption develop positive and statistically significant relationships with carbon emissions in the long‐run but the case of total energy and petroleum consumption was negative and statistically significant. The short‐run results illustrate that combined (total energy consumption) and hydrocarbon gas consumption indicate evidence of EKC. Other separated data (primary coal, secondary coal, electricity, and petroleum consumption) show no evidence of the EKC in the short‐run. Short‐run results also indicated that total energy, primary coal, secondary coal, and electricity consumption report positive and statistically significant relationship with carbon emissions but hydrocarbon gas and petroleum consumption indicate positive but insignificant associations. Granger causality test based on vector error correction method (VECM) are also presented to ascertain causality. © 2018 American Institute of Chemical Engineers Environ Prog, 38: 30–46, 2019 Highlights The EKC hypothesis was examined in South Africa by employing energy combined and separated data. The EKC is supported in energy combined data in both short and long‐run but varies in separated data. Primary coal, secondary coal, electricity and hydrocarbon gas consumption develop positive and statistically significant relationships with carbon emissions in the long‐run. Total energy and petroleum consumption generate negative and statistically significant associations with carbon emissions in the long‐run. Total energy, primary coal, secondary coal and electricity show positive and statistically significant relationship with carbon emissions in the short‐run. Hydrocarbon gas and petroleum consumption indicate positive but insignificant association with carbon emissions in the short‐run. Granger causality tests based on VECM are also discussed.

Investigating whether the environmental Kuznets curve hypothesis holds for sectoral CO2 emissions: evidence from developed and developing countries

“…(1) and the selection of explanatory variables are based on the existing literature (Ganda, 2019;Liu et al, 2017;Sugiawan & Managi, 2016;Zoundi, 2017). The quadratic specification of income level is extensively used in research related to the EKC hypothesis of the income-emissions relationship.…”

“…Many studies have found an association between CO 2 emissions and income level (Apergis & Ozturk, 2015;Boutabba, 2014;Ganda, 2019;Jalil & Feridun, 2011;Kais & Sami, 2016;Ozturk & Acaravci, 2013;Shahbaz et al, 2019). These studies generally provide evidence of an inverted U-shape relationship, the environmental Kuznets curve (EKC) hypothesis, in which CO 2 emissions increase with an increase in the income level until reaching a threshold level, and decline as the income level continues to surge beyond the threshold level.…”

The moderating role of informal economy on financial development induced ekc hypothesis in turkey

“…Many other studies, on the other hand, failed to demonstrate such a relationship and argued that the hypothesis is not valid. 30–36…”

Effect of foreign direct investment, financial development, and economic growth on environmental quality in OECD economies using panel quantile regressions

“…OECD (2019c) also confirms that most OECD economies managed to meet their emission targets as per the Kyoto protocol spanning 2008 to 2020 and therefore on course to meet reduction targets for 2020. On that note, studies to survey economic growth and emissions have also heightened (Dogan & Turkekul, 2016; Ganda, 2019a, 2019b, 2019c; Pata, 2018; Seker, Ertugrul, & Cetin, 2015; ). In this vein, evidence shows that the environmental Kuznets curve (EKC) hypothesis is also the most investigated hypothesis as it describes the association between pollution and GDP level because the impact of economic practices on the natural environment has heightened and hence attracted greater attention from green stakeholders (Ganda, 2019c).…”

“…In this vein, evidence shows that the environmental Kuznets curve (EKC) hypothesis is also the most investigated hypothesis as it describes the association between pollution and GDP level because the impact of economic practices on the natural environment has heightened and hence attracted greater attention from green stakeholders (Ganda, 2019c). The EKC posits that pollution is heightened as economic development increases and decreases after a particular threshold of wealth has been attained (Ganda, 2019b).…”