Relationship Among Economic Growth, Energy Consumption, CO₂ Emission, and Urbanization: Evidence From MINT Countries

Abstract

This study aimed at examining the synergy among economic growth, carbon dioxide (CO2) emissions, urbanization, and energy consumption in MINT (Mexico, Indonesia, Nigeria, and Turkey) countries. Yearly data from 1993 to 2017, which were sourced from World Bank Development Indicators, were employed, and the analysis was performed by employing the ARDL Bounds test approach. The findings from the study reveal that the energy–growth hypothesis that assumed unidirectional causality from energy consumption was true for Nigeria and Indonesia, whereas Mexico and Turkey followed the feedback hypothesis, which indicates a bidirectional relationship. Meanwhile, all the MINT countries show a long-run relationship from economic growth, energy consumption, and CO2 emissions to urbanization. The study suggests that the policymakers in MINT countries should develop an energy conservation policy that will enhance the potential growth of their economy. More so, there is a need to promote green industries. Finally, to ensure sustainable urbanization in MINT countries, concerted efforts need to be made to ensure the reduction in the urbanization level, so as to ensure the sustainability of the urbanization, but without compromising the economic growth, through the formulation of policies that will ensure the decrease in CO2 emissions to achieve quality environment.

The symmetrical and asymmetrical effects of foreign direct investment and financial development on carbon emission: evidence from Nigeria

“…Meanwhile, some recent studies tilted their studies towards the investigation of energy types and the implication on carbon emission. The studies supported the arguments that renewable energy and non-renewable energy can be detrimental to the environment [15,52,54,74]. Another recent study for a single country from Shabestari [88] and Sarwar et al [87] for Sweden and China respectively confirmed a positive relationship between energy consumption and carbon emission.…”

“…The studies on the relationship between economic growth and carbon emission in the literature have been mixed. While some studies presented a unidirectional relationship between economic growth and carbon emission [7,10,16 [65,74,85,88]. Though, few of them concludes in their studies that no causality exists between economic growth and carbon emission (Jardon et al 2017; [87,109].…”

Determinants of CO2 Emissions in Emerging Markets: An Empirical Evidence from MINT Economies

“…Akin (2014) revealed that there is an uni-directional relationship running from CO2 emission and trade while Ertugrul et al (2016) study shows that there is an uni-directional relationship running from trade and CO2 emission. Several studies have included urbanization in their model (Khoshnevis & Dariani, 2019;Abbas, 2020;Kasman & Duman, 2015;Odugbesan & Rjoub 2020). Khoshnevis & Dariani (2019) reveal that the link between urbanization and GDP growth is bi-directional while Abbasi et al (2020) researched 8 Asian countries and finding revealed a bidirectional relationship between urbanization and energy consumption.…”

“…Recently, Odugbesan & Rjoub (2020) utilize the time series data set to examine the link between economic growth, energy consumption, urbanization and CO2 emissions on MINT economies. Contrary to Odugbesan & Rjoub (2020), this study employed the panel data set to examine the relationship between economic growth, energy consumption, urbanization and CO2 emissions. Also, trade was incorporated into the model, which will help in filling the gap in energy and environmental literature concerning countries with similar features such as MINT.…”

“…Therefore, they contribute largely to the increase in the nation's economic growth; this growth tends to be induced by the energy consumed from heavy machines. Moreover, urbanization increases the consumption of industrial and residential energy, changing production structures into industrial areas, and increasing the technologically oriented production (Odugbesan & Rjoub, 2020). Examples of such urbanized cities are Lagos, Istanbul, Mexico City and Jakarta.…”