Energy Consumption, Co2 and Economic Growth Nexus in Vietnam

Morelli, Giovanna; Mele, Marco

doi:10.32479/ijeep.8248

Cited by 25 publications

(12 citation statements)

References 21 publications

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“…The outcomes of the previous studies signify that the consumption of fossil fuel leads to increase the CO 2 emission, whereas, the renewable energy has found to be insignificant to reduce the CO 2 emission (Al-Mulali et al , 2016). As per the observed literature, most of the studies on the impact of energy consumption on environment consequences in Vietnam have taken the general energy as a determinant of energy consumption (Apergis and Gangopadhyay, 2020; Morelli and Mele, 2020), so empirical studies regarding the impact of fossil fuel consumption on environmental quality are missing in the literature, and the present study is conducted to fill this gap.…”

Section: Literature Reviewmentioning

confidence: 99%

Fossil fuel, industrial growth and inward FDI impact on CO₂ emissions in Vietnam: testing the EKC hypothesis

Ullah

Nadeem

Ali

et al. 2021

MEQ

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PurposeIn this paper, the authors investigate that the increasing level of fossil fuel combustion in the industrial sector has been considered the prime cause for the emissions of greenhouse gas. Meanwhile, the research focusing on the impact of fossil fuel consumption on the emission of CO2 is limited for the developing countries containing Vietnam. This study applied the autoregressive distributed lag (ARDL) approach with structural breaks presence, and the Bayer–Hanck combined cointegration method to observe the rationality of the environmental Kuznets curve (EKC) hypothesis in the dynamic relationship between the industrialization and carbon dioxide (CO2) emission in Vietnam, capturing the role of foreign direct investment (FDI) inflows and the fossil fuel consumption over the period of 1975–2019. The outcomes revealed the confirmation of cointegration among the variables and both short and long-run regression parameters indicated the evidence for the presence of a U-shaped association between the level of industrial growth and CO2 emission that is further confirmed by employing the Lind and Mehlum U-test for robustness purpose. The results of Granger causality discovered a unidirectional causality from FDI and fossil fuel consumption to CO2 emission in the short run. For the policy points, this study suggests the use of efficient and low carbon-emitting technologies.Design/methodology/approachIn order to test for consistency and robustness of the cointegration analysis, this study also applied the ARDL bound testing method to find out long-run association among variables with the existence of the structural break in the dataset. The ARDL method was preferred to other traditional cointegration models; because of the smaller dataset, the results obtained from the ARDL method are efficient and consistent and equally appropriate for I(1) and I(0) variables.FindingsThe short-run and long-run causal associations among variables have been observed by employing the error correction term (ECT) augmented Granger-causality test that revealed the presence of the long-run causality among variables only when the CO2 emission is employed as a dependent variable. The outcomes for short-run causality indicated the presence of unidirectional causality between consumption of fossil fuel and CO2 emission, where the fossil fuel consumptions Granger-cause CO2 emission. Industrial growth has also been found to have an impact on fossil fuel consumptions, however not the opposite. This advocates that the policies aimed at reducing the fossil fuel consumptions would not be harmful to industrial growth as other energy efficient and cleaner technology could be implemented by the firms to substitute the fossil fuel usage.Originality/valueThe study explored the dynamic relationship among FDI, consumption of fossil fuel, industrial growth and the CO2 emission in Vietnam for the time period 1975–2019. The newly established Bayer–Hanck joint cointegration method and the ARDL bound testing were employed by taking into account the structural breaks in the dataset.

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Section: Literature Reviewmentioning

confidence: 99%

Fossil fuel, industrial growth and inward FDI impact on CO₂ emissions in Vietnam: testing the EKC hypothesis

Ullah

Nadeem

Ali

et al. 2021

MEQ

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“…(Bashir et al, 2019) investigated the causality between human capital, energy consumption, CO 2 emissions, and economic growth for Indonesia and found that in the short-run, there is causal evidence between CO 2 emission and energy consumption. In Vietnam (Morelli and Mele, 2020) used Toda-Yamamoto test and Johansen and Juselius approach to study the relationship among per capita GDP, CO 2 emissions, and energy use and concluded that economic growth leads to energy consumption. Similarly in Pakistan besides economic growth (Komal and Abbas, 2015) found a positive impact of urbanization and financial development on energy consumption and negative impact of energy prices on energy consumption.…”

Section: Review Of Literaturementioning

confidence: 99%

Determinants of Energy Consumption in Newly Industrialised Countries of Asia

Fernandes¹,

Reddy

2020

IJEEP

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This study focuses on identifying the factors that lead to energy consumption in select newly industrialized countries of Asia such as China, India, Indonesia, Malaysia, Philippines and Thailand. GDP, Exchange rate, industrialization, urbanization and trade openness are the select factors identified and such data is obtained for a period from 1980 to 2018. To check for stationarity, ADF unit root test and PP unit root test is employed where all variables are found to be stationary at first difference. OLS regression is applied to identify which factor has an impact on energy consumption. Besides, Johansen cointegration test to establish long run relationship and VECM is employed, where all variables were found to be integrated in the long run however VECM indicated that for China and Malaysia energy consumption is able to achieve equilibrium after a shock in the previous period. To determine causal links between variables, Toda Yamamoto Causality test is applied. Results indicate that industrialization, exchange rate, financial development and trade openness causes energy consumption in China. However, in India and Thailand only industrialization causes energy consumption. GDP causes energy consumption in Indonesia and trade openness causes energy consumption in Malaysia.

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“…Similar results are obtained when repeating the calculations using the Spearman correlation analysis. More advanced statistical tools can also be used to analyze the data, 39,40 however they should not change the conclusions. Table 1 The Pearson correlation r between the installed VRE capacity and the population density.…”

Section: Discussionmentioning

confidence: 99%

“…Land use aspects differ between countries and are influenced by a variety of factors such as economy, society, policy, culture, geography and more. 39,40 This study adopts an empirical approach to analyze the global effect of these factors, inspecting the relation between VRE production capacity and population density. The data examined in this paper includes (i) The installed solar and onshore wind power production capacity in Germany between 2001 and 2018, (ii) The installed solar and onshore wind power production capacity in China, India, and the USA at the state/province level (2015 data), and (iii) 131 countries worldwide at the country level (2015 data).…”

Section: Discussionmentioning

confidence: 99%

On the population density limit to variable renewable energy potential

Barnea

2021

Preprint

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Renewable energies are expanding rapidly around the globe. In several countries, however, their expansion is being challenged by NIMBY groups and land footprint. In this article, we suggest that indeed a major challenge for renewable energy expansion appears to be tied to land use questions, especially in regions with high population density. Our research finds a strong relationship between population density and renewable energy expansion. The power density of Variable Renewable Energy (VRE) sources, such as wind turbines or photovoltaic panels, is much lower than that of fossil fuels or nuclear power plants, to the extent that land availability seems to be the limiting factor for large scale VRE production. During the last decade, a substantial theoretical effort was dedicated to study the actual power density of VRE, and the available space in order to estimate the limits that land footprint sets on VRE production. On top of the technological, and geographical issues associated with such studies there are somewhat more complicated and less well defined sociological issues related to the willingness of population to live in near proximity to large scale VRE farms. To explore the overall issue of VRE penetration and limitations, the installed VRE capacity data from different countries is examined. It is found that in Germany, with VRE power density of 0.27 W/m2 (2018 data), there is a strong negative correlation between the population density and VRE capacity, dominated by solar power production. We interpret this correlation as an indication that Germany has reached the point where land usage is becoming the limiting factor for installation of new VRE power plants. As Germany is a worldwide leader in VRE production per capita with more than 1 kW/person, we speculate that this sets a universal barrier of 2%-3% on the fractional land area available for VRE production. Crossing this barrier the expansion of the installed VRE capacity is expected to stall. This does not, however, mean that renewable energy expansion will be doomed in countries with high population density. Rather it suggests the need for new approaches — a stronger focus on battery storage technologies, inter-sectoral coupling (renewable energy storage in automobile batteries) and continued investment in efficiency improvements of renewable energy technologies. It may also be a question of how renewable energy develops — enhancing solar on existing built infrastructure (rooftops, siding, and even roads) could help address this issue.

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Energy Consumption, Co2 and Economic Growth Nexus in Vietnam

Cited by 25 publications

References 21 publications

Fossil fuel, industrial growth and inward FDI impact on CO₂ emissions in Vietnam: testing the EKC hypothesis

Fossil fuel, industrial growth and inward FDI impact on CO₂ emissions in Vietnam: testing the EKC hypothesis

Determinants of Energy Consumption in Newly Industrialised Countries of Asia

On the population density limit to variable renewable energy potential

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Energy Consumption, Co2 and Economic Growth Nexus in Vietnam

Cited by 25 publications

References 21 publications

Fossil fuel, industrial growth and inward FDI impact on CO2 emissions in Vietnam: testing the EKC hypothesis

Fossil fuel, industrial growth and inward FDI impact on CO2 emissions in Vietnam: testing the EKC hypothesis

Determinants of Energy Consumption in Newly Industrialised Countries of Asia

On the population density limit to variable renewable energy potential

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Product

Resources

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Fossil fuel, industrial growth and inward FDI impact on CO₂ emissions in Vietnam: testing the EKC hypothesis

Fossil fuel, industrial growth and inward FDI impact on CO₂ emissions in Vietnam: testing the EKC hypothesis