Investigation of Cointegration and Causality Between Energy Consumption and Employment with Implications for the Environment

Cheng, Benjamin S.; Andrews, Donald R.; Birkett, Brenda S.

doi:10.1080/00908319808970087

Cited by 29 publications

(29 citation statements)

References 16 publications

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“…Possibly this heterogeneity in the pattern of causality led to the observed bi-directional causality at the level of country-groups for these two continents. 2 See, e.g., Yu and Choi (1985), Cheng (1996), Cheng and Lai (1997) and Yang (2000).…”

Section: Introductionmentioning

confidence: 99%

Income and emission: A panel data-based cointegration analysis

Dinda¹,

Coondoo

2006

Ecological Economics

394

162

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This paper presents the results of an investigation of the causality issue of incomeemission relationship based on time series econometric techniques of unit root test, cointegration and related error correction model for a panel data set. Here, the nature of causality between per capita CO 2 emission (PCCO2) and per capita GDP (PCGDP) has been examined using a cross country panel data set covering 88 countries for the period 1960 -90. Using the panel unit root test procedure of Im et al. (1997) (IPS), we have found that the hypothesis of unit root (i.e., non-stationarity) of the time series of PCGDP and PCCO2 can not be rejected for individual country groups. As both the variables are found to follow I(1) process, we next have performed the panel data co-integration test and finally, we have estimated the ECM (for these country groups for which significant income-emission cointegration was obtained) to explore the nature of dynamics implicit in the given panel data set. Our findings suggest that there is more or less a bi-directional causal relationship between income (PCGDP) and CO 2 emission (PCCO2) for Africa, Central America, America as a whole, Eastern Europe, Western Europe, Europe as a whole and the World as a whole. That means, the movement of the one variable directly affects the other variable through a feedback system. Thus, the policy makers should be cautious to make proper decision about the control of emission level.JEL Classification: C33, O40, and Q25.

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Section: Introductionmentioning

confidence: 99%

Income and emission: A panel data-based cointegration analysis

Dinda¹,

Coondoo

2006

Ecological Economics

394

162

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“…Some of them have proved the relationship and some of the not proved the relationship between energy and development. (Cheng, 1995) (Yu E. J., 1992). It has been also proved that energy is essential for development, whereas, eco-efficient and clean energy is critical for sustainable development.…”

Section: Review Of Literaturementioning

confidence: 99%

Impact of Eco-Efficient Energy on Sustainable Development in South Asia: Empirical Estimations

Saldanha¹,

Premakumara

2017

SDMIMD

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Energy is a prerequisite for all production processes and development. However, eco-efficient, sustainable green energy is essential for sustainable development and green growth. The commitments to produce renewable, clean and green energy have compelled all countries, by the International Agreements and Treaties on energy, environmental protection and sustainable growth. In this background, the present work tried to examine the efforts made by South Asian countries in order to produce eco-efficient, sustainable, clean energy and its interactions with economic development. The present study has used secondary time series data on green energy parameters and parameters related to economic development. The econometric techniques such as stationarity, impact models have been used for examination and analysis of data. It has been found from the analysis that energy intensity has been significantly increased in South Asia along with economic development. However, the production of green energy is not commensurate with its expected rate. Moreover, the shares of both renewable energy and renewable electricity in total energy have been declined over the period of time. This is a negative sign of sustainable development and green growth. Hence, there is a need to restructure the energy policy by South Asian countries according to the needs of sustainable development and green growth. Accordingly, consumption, transmission, process, etc., should be made mandatory to use green energy in their total energy consumption. Pigouvian principle of taxing on increasing social cost and subsidization for increasing social benefits is more appropriate for South Asian policies and strategies for eco efficient green energy and green growth.

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“…Such studies include [7], and [8]. Another group of authors such as [9] [10] [11] [12] and [13] support the positive impact of GDP growth on energy consumption.…”

Section: Related Review Of Literaturementioning

confidence: 99%

Does Greenhouses Gases Emissions Reduction Harms Economic Growth? A Lesson from Togolese Economy

Pilo¹

2017

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The move towards lower greenhouses gases (GHGs) emissions as a solution to mitigate climate change is not costless. Focusing on Togolese economy, we assessed in this article the role played by the shift to renewable energy consumption path in the search for higher economic growth. Based on the Auto-Regressive Distributed Lagged (ARDL) model and with the help of time series data that cover the period 1983-2012, our estimates indicate that the effects of higher renewable energy consumption on per capita economic growth varies depending on time horizon. A 1% increase of renewable energy consumption reduces per capita economic growth by 2.33% in the short run while it boosts economic growth by 1.22% in the long run. These findings are partly explained by the high technological rigidity of the country. The message to be sold to policy makers is that switching from fossil energy technology to technology based on renewable energy is an expensive and time consuming process which is economically efficient only in the long run. Consequently, the country might need relatively considerable time to fully shift to a cleaner path in terms of carbon emissions mitigation. Thus, the country move towards lower GHGs emissions must be tactically managed and done progressively.

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Investigation of Cointegration and Causality Between Energy Consumption and Employment with Implications for the Environment

Cited by 29 publications

References 16 publications

Income and emission: A panel data-based cointegration analysis

Income and emission: A panel data-based cointegration analysis

Impact of Eco-Efficient Energy on Sustainable Development in South Asia: Empirical Estimations

Does Greenhouses Gases Emissions Reduction Harms Economic Growth? A Lesson from Togolese Economy

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