Energy Consumption is a Determinant of Economic Growth in BRICS Countries or Not?

Journal of Public Affairs

Barua

Hussain

et al. 2020

This study explores the interrelationship between CO2 emissions and economic growth in selected Africa economies from 1990 to 2014 providing evidence from both static and dynamic models. Results show that increases in energy use have a significant and positive effect on economic growth; which goes to show that growth in Africa is actually energy dependent. Further findings suggest that CO2 emissions have no significant contemporaneous effect, however, a significant and negative effect at a one‐period lag on economic growth. The significance of the impacts is consistently confirmed by both the static and dynamic estimations. Also, trade adds to economic growth and also contributes to environmental deterioration in Africa. There is a dire need for Africa to adjust its energy portfolio by shifting to clean energy sources which will enhance sustainable economic growth without deteriorating the environment.

Section: Resultssupporting

confidence: 70%

The determinants and interrelationship of carbon emissions and economic growth in African economies: Fresh insights from static and dynamic models

Journal of Public Affairs

Barua

Hussain

et al. 2020

“…The feedback hypothesis argues for bidirectional causality between both variables, unlike the neutrality hypothesis, suggesting no causality between both. Numerous studies (Bayat et al 2017;Fotourehchi 2017;Hasanov et al 2017;Lechthaler 2017;Obradovic, Lojanica 2017;Atems, Hotaling 2018;Kumari, Sharma 2018) discovered that EC drives economic growth which is in line with the growth hypothesis mentioned earlier. These studies emphasised the vital role of EC in manufacturing and other production processes, which led to the creation of goods for local consumption and exportation, and hence economic growth.…”

Section: Review Of Literaturesupporting

confidence: 72%

Energy Consumption and Economic Growth Linkage: Global Evidence from Symmetric and Asymmetric Simulations

Ali

Quaestiones Geographicae

Adekunle

et al. 2022

The literature reveals that linear models do not accurately represent the asymmetric relationship between economic growth and energy consumption (EC). To fill this gap, we examined the asymmetric relationship between EC and economic growth in a non-linear panel autoregressive distributed lag (ARDL) framework of 85 countries as a whole sample and of Brazil, Russia, India, China, and South Africa (BRICS), the Next Eleven, Big Four in Western Europe, Asia-Pacific region, Group of Seven, South Asian Association for Regional Cooperation (SAARC), Economic Cooperation Organization (ECO) and the Arab League as a sub-sample analysis from 1977 to 2014. A second generational unit root test has been applied to check the problem of cross-sectional dependency. Asymmetric co-integration was employed to analyse the co-integration between the variables of interest. Long-run and short-run estimates have been calculated using the non-linear panel ARDL method. Results indicate that positive shocks to energy use tend to have a growth-enhancing effect in ECO and the Next Eleven while in the rest of the regions, the effect is growth contraction. Moreover, economic recovery from a positive shock to energy use is the case in the Arab League, Asia-Pacific region, Group of Seven and in the whole sample. However, a negative shock to EC is observed in the Group of Seven, Asia Pacific region, Big Four in Western Europe and ECO, and the whole sample worsens the economic contraction. We can deduct from this study’s results that information on the asymmetric relationship between the subject variables is needed to design sound economic policy decisions across different economic regions.

Electricity consumption, urbanization, and economic growth in Nigeria: New insights from combined cointegration amidst structural breaks

Journal of Public Affairs

Bekun

2020

The study explores the link between electricity consumption, urbanization, and economic growth in Nigeria from 1971 to 2014. The bounds test and the Bayer and Hanck (Journal of Time Series Analysis, 2013, 34(1), 83–95) cointegration tests affirm cointegrating relationship. Electricity consumption increases economic growth in both time periods, while the impact of urbanization appears to inhibit growth. The fully modified OLS, dynamic OLS, and the canonical cointegrating regression confirm the robustness of the findings. The vector error correction model Granger causality test supports the neutrality hypothesis in the short run and the feedback hypothesis among the variables in the long run. Therefore, policies to ensure efficient electricity supply, curb rapid urbanization, and promote sustainable economic growth were suggested.