The CO 2 –growth nexus revisited: A nonparametric analysis for the G7 economies over nearly two centuries

Shahbaz, Muhammad; Shafiullah, Muhammad; Papavassiliou, V.; Hammoudeh, Shawkat

doi:10.1016/j.eneco.2017.05.007

Cited by 138 publications

(63 citation statements)

References 56 publications

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“…The adoption of parametric approach in testing the EKC hypothesis may face the problem of misspecification. As such, the nonparametric strand of the EKC literature has emerged to further explain the mixed results as it does not require the specification of a functional form (Shahbaz et al 2017). Using a novel nonparametric econometrics approach is expected to yield a more insightful understanding of the EKC literature.…”

Section: The Environmental Kuznets Curve (Ekc) Hypothesismentioning

confidence: 99%

CO2 Emissions, Energy Consumption, and Economic Growth: New Evidence in the ASEAN Countries

2019

JRFM

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The members of the Association of Southeast Asian Nations (ASEAN) have made several attempts to adopt renewable energy targets given the economic, energy-related, environmental challenges faced by the governments, policy makers, and stakeholders. However, previous studies have focused limited attention on the role of renewable energy when testing the dynamic link between CO2 emissions, energy consumption and renewable energy consumption. As such, this study is conducted to test a common hypothesis regarding a long-run environmental Kuznets curve (EKC). The paper also investigates the causal link between carbon dioxide (CO2) emissions, energy consumption, renewable energy, population growth, and economic growth for countries in the region. Using various time-series econometrics approaches, our analysis covers five ASEAN members (including Indonesia, Myanmar, Malaysia, the Philippines, and Thailand) for the 1971–2014 period where required data are available. Our results reveal no long-run relationship among the variables of interest in the Philippines and Thailand, but a relationship does exist in Indonesia, Myanmar, and Malaysia. The EKC hypothesis is observed in Myanmar but not in Indonesia and Malaysia. Also, Granger causality among these important variables varies considerably across the selected countries. No Granger causality among carbon emissions, energy consumption, and renewable energy consumption is reported in Malaysia, the Philippines, and Thailand. Indonesia experiences a unidirectional causal effect from economic growth to renewable energy consumption in both short and long run and from economic growth to CO2 emissions and energy consumption. Interestingly, only Myanmar has a unidirectional effect from GDP growth, energy consumption, and population to the adoption of renewable energy. Policy implications have emerged based on the findings achieved from this study for each country in the ASEAN region.

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Section: The Environmental Kuznets Curve (Ekc) Hypothesismentioning

confidence: 99%

CO2 Emissions, Energy Consumption, and Economic Growth: New Evidence in the ASEAN Countries

2019

JRFM

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“…We use nonparametric techniques because they offer several advantages over their parametric counterparts. Firstly, nonparametric estimators are better able to model cases of complex nonlinearities without making any changes to the functional form, which is often a characteristic of the causal relationship between energy consumption and economic growth (Wagner 2015, Shahbaz et al 2017a. The nonlinearities in the data generating processes can often lead to over-rejection of the null hypothesis for parametric tests of unit root, cointegration, and direction of Granger causality.…”

Section: Introductionmentioning

confidence: 99%

A nonparametric analysis of energy environmental Kuznets Curve in Chinese Provinces

et al. 2020

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Energy resources are an important material foundation for the survival and development of human society, and the relationship between energy and economy is interactive and complementary. This paper analyzes the energy consumption-economic growth nexus in Chinese provinces using novel and recent nonparametric time-series as well as panel data empirical approaches. The dataset covers 30 provinces over the period of 1980-2018. The empirical analysis indicates the presence of a nonlinear functional form and smooth structural changes in most of the provinces. The nonparametric empirical analysis validates the presence of a nonlinear unit root problem in energy consumption and economic growth, and nonlinear cointegration between the variables. Additionally, the nonparametric panel cointegration test reports evidence of convergence in energy consumption and economic growth patterns across the provinces. The nonparametric regression analysis finds economic growth to have a positive effect, on average, on energy consumption in all provinces, except for Beijing. Further, the energy environmental Kuznets curve exists between economic growth and energy consumption in 20 out of 30 Chinese provinces. The Granger causality analysis reveals the presence of a mixed causal relationship between economic growth and energy consumption. The empirical findings have important implications for Chinese authorities in planning for improving energy efficiency, decoupling between economic growth and energy consumption, and reducing the environmental footprint of provinces.

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“…The case of Germany and Italy is for sure peculiar since they are considered as two countries that have overcome their so-called Environmental Kuznets Curve (EKC) and are now in their decreasing phase of CO2 emissions (e.g. Mazzanti and Musolesi, 2013;Shahbaz et al, 2017). However, in the EKC literature, commonly only one pollutant is considered (CO2) and is averaged by total population.…”

Section: Discussionmentioning

confidence: 99%

Beyond CO2: A multi-criteria analysis of air pollution in Europe

Caravaggio

Caravella

Ishizaka

et al. 2019

Journal of Cleaner Production

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The CO 2 –growth nexus revisited: A nonparametric analysis for the G7 economies over nearly two centuries

Cited by 138 publications

References 56 publications

CO2 Emissions, Energy Consumption, and Economic Growth: New Evidence in the ASEAN Countries

CO2 Emissions, Energy Consumption, and Economic Growth: New Evidence in the ASEAN Countries

A nonparametric analysis of energy environmental Kuznets Curve in Chinese Provinces

Beyond CO2: A multi-criteria analysis of air pollution in Europe

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