This study analyzes the short-run and long-run causality association among energy consumption (EC), economic growth (EG) and CO2 emissions for four selected Asian countries (Bangladesh, China, India, and Pakistan). A bound testing method for cointegration and Granger causality measures is applied from 1980 to 2018. In the short-run, the outcomes show that EC and EG are increasing CO2 emissions by 1.1 to 2.4 times in all countries; EC Granger causes EG in the selected countries; none of the countries EG causes EC. A reverse causality was found from CO2 emissions to GDP in China and India, and strong evidence of EG to CO2 was found in Bangladesh. A unidirectional causality was found between GDP to CO2 emissions in Bangladesh. In the long-run, EC and EG produce CO2 emissions in the selected nations, while a bidirectional causal association was estimated between CO2 and EG in all countries at 1 and 5% significance levels, presenting that economic activity and CO2 emissions are jointly impacting each other. In the end, EC and EG are producing CO2 emissions. Cumulative sum and cumulative sum of squares show the exact model’s stability under 5% level of significance. Consequently, this research suggest the Asian countries take note of China’s development on developing a robust renewable energy technologies (RETs) and infrastructure to potentially enhance more sustainable development.

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Delving the Impact of Energy Consumption, Economic Growth and CO2 Emissions: Evidence from Asian Economies

  • M. Y. Raza,
  • M. Hashim

摘要

This study analyzes the short-run and long-run causality association among energy consumption (EC), economic growth (EG) and CO2 emissions for four selected Asian countries (Bangladesh, China, India, and Pakistan). A bound testing method for cointegration and Granger causality measures is applied from 1980 to 2018. In the short-run, the outcomes show that EC and EG are increasing CO2 emissions by 1.1 to 2.4 times in all countries; EC Granger causes EG in the selected countries; none of the countries EG causes EC. A reverse causality was found from CO2 emissions to GDP in China and India, and strong evidence of EG to CO2 was found in Bangladesh. A unidirectional causality was found between GDP to CO2 emissions in Bangladesh. In the long-run, EC and EG produce CO2 emissions in the selected nations, while a bidirectional causal association was estimated between CO2 and EG in all countries at 1 and 5% significance levels, presenting that economic activity and CO2 emissions are jointly impacting each other. In the end, EC and EG are producing CO2 emissions. Cumulative sum and cumulative sum of squares show the exact model’s stability under 5% level of significance. Consequently, this research suggest the Asian countries take note of China’s development on developing a robust renewable energy technologies (RETs) and infrastructure to potentially enhance more sustainable development.