Carbon dioxide emissions, energy consumption, economic growth, and foreign direct investment: Causality analysis for Sub-Saharan Africa

Energy

Volumn 74, Issue C, 2014, Pages 595-606

  Kivyiro, Pendo ^a,b   Arminen, Heli ^a  

^a LAPPEENRANTA UNIVERSITY OF TECHNOLOGY   (Finland)

^b Institute of Finance Management   (Tanzania)

Author keywords

ARDL bounds testing; CO2 emissions; Economic development; Energy consumption; FDI; Granger causality

Indexed keywords

CARBON; CARBON DIOXIDE; ECONOMIC ANALYSIS; ECONOMICS; ENERGY UTILIZATION; GLOBAL WARMING; INVESTMENTS; STATISTICAL TESTS;

AUTOREGRESSIVE DISTRIBUTED LAG MODELS; BOUNDS TESTING; CARBON DIOXIDE EMISSIONS; ECONOMIC DEVELOPMENT; ENVIRONMENTAL KUZNETS CURVE HYPOTHESIS; FDI; FOREIGN DIRECT INVESTMENTS; GRANGER CAUSALITY;

ECONOMIC AND SOCIAL EFFECTS;

EID: 84927690266     PISSN: 03605442     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.energy.2014.07.025     Document Type: Article

References (89)

1. 2 emissions: a cointegration analysis for China. Energy Policy 2009, 37:5167-5172.
2. 2 emissions on the economic growth and financial development in the Sub Saharan Countries. Energy 2012, 39:180-186.
3. Sharma S.S. Determinants of carbon dioxide emissions: empirical evidence from 69 countries. Appl Energy 2011, 88:376-382.
4. Egenhofer C., Georgiev A. The Copenhagen Accord: a first stab at deciphering the implications for the EU, CEPS Commentary 2009, Centre for European Policy studies, Brussels.
5. Rogelj J., Nabel J., Chen C., Hare W., Markmann K., Meinshausen M., Höhne N. Copenhagen Accord pledges are paltry. Nature 2010, 464:1126-1128.
6. Stavins R.N., Stowe R.C. What Hath Copenhagen Wrought? a preliminary assessment of the Copenhagen Accord June 2010, Blog post, downloaded in, on 11th November, 2013. http://www.enviromentalmagazine.org.
7. Stigson P., Buhr K., Roth S. The ambitions in Copenhagen Pledges: country case studies of drivers and barriers. Greenh Gas Meas Manag 2013, 3:21-36.
8. Kumazawa R., Callaghan M.S. The effect of the Kyoto protocol on carbon dioxide emissions. JEcon Finance 2012, 36:201-210.
9. Odhiambo N.M. Energy consumption and economic growth nexus in Tanzania: an ARDL bounds testing approach. Energy Policy 2009, 37:617-622.
10. Narayan P.K., Narayan S. Carbon dioxide emissions and economic growth: panel data evidence from developing countries. Energy Policy 2010, 38:661-666.
11. Niu S., Ding Y., Niu Y., Li Y., Luo G. Economic growth, energy conservation and emissions reduction: a comparative analysis based on panel data for 8 Asian-Pacific countries. Energy Policy 2011, 39:2121-2131.
12. 2 emissions, energy consumption and economic growth in China: a panel data analysis. Energy Policy 2011, 39:4870-4875.
13. 2 emissions, energy consumption, FDI (foreign direct investment) and GDP (gross domestic product): evidence from a panel of BRIC (Brazil, Russian Federation, India, and China) countries. Energy 2011, 36:685-693.
14. 2 emissions, energy consumption, and output in France. Energy Policy 2007, 35:4772-4778.
15. 2 emissions, research and technology transfer in China. Ecol Econ 2009, 68:2658-2665.
16. Chang C.C. Amultivariate causality test of carbon dioxide emissions, energy consumption and economic growth in China. Appl Energy 2010, 87:3533-3537.
17. 2 emissions, energy consumption, income and foreign trade in Turkey. Energy Policy 2009, 37:1156-1164.
18. Bashiri Behmiri N., Pires Manso J.R. How crude oil consumption impacts on economic growth of Sub-Saharan Africa?. Energy 2013, 54:74-83.
19. Cole M.A., Elliott R.J. FDI and the capital intensity of "dirty" sectors: a missing piece of the pollution haven puzzle. Rev Dev Econ 2005, 9:530-548.
20. Jinke L., Hualing S., Dianming G. Causality relationship between coal consumption and GDP: difference of major OECD and non-OECD countries. Appl Energy 2007, 85:421-429.
21. Kijima M., Nishide K., Ohyama A. Economic models for environmental Kuznets curve: a survey. JEcon Dyn Control 2010, 34:1187-1201.
22. Sadorsky P. Renewable energy consumption and income in emerging economies. Energy Policy 2009, 37:4021-4028.
23. Soytas U., Sari R. Energy consumption, economic growth, and carbon emissions: challenges faced by an EU candidate member. Ecol Econ 2009, 68:1667-1675.
24. 2 emission Kuznets curve. Energy Policy 1999, 27:691-694.
25. Stern D.I. The rise and fall of the environmental Kuznets curve. World Dev 2004, 32:1419-1439.
26. Wagner M. The carbon Kuznets curve: a cloudy picture emitted by bad econometrics?'. Resour Energy Econ 2008, 30:388-408.
27. Muller-Furstenberger G., Wagner M. Exploring the environmental Kuznets hypothesis: theoretical and econometric problems. Ecol Econ 2007, 62:648-660.
28. 2 emissions: how do different countries fare? 2007, Environment Department World bank.
29. Grossman G.M., Krueger A.B. Environmental impacts of a North American free trade agreement 1993, NBER, working paper No. 3914.
30. Grossman G.M., Krueger A.B. Economic growth and the environment. QJ Econ 1995, 110:353-377.
31. Kuznets S. Economic growth and income inequality. Am Econ Rev 1955, 45:1-28.
32. Kraft J., Kraft A. On the relationship between energy and GNP. JEnergy Dev 1978, 3:401-403.
33. Akarca A.T., Long T.V. Relationship between energy and GNP: a re-examination. JEnergy Dev 1980, 5:326-331.
34. Ang J.B. Economic development, pollutant emissions and energy consumption in Malaysia. JPol Model 2008, 30:271-278.
35. Yu E.S.H., Hwang B.K. The relationship between energy and GNP: further results. Energy Econ 1984, 6:186-190.
36. Cheng B.S. Causality between energy consumption and economic growth in India: an application of cointegration and error-correction modelling. Indian Econ Rev 1999, 34:39-49.
37. Soytas U., Sari R. Energy consumption and GDP: causality relationship in G-7 countries and emerging markets. Energy Econ 2003, 25:33-37.
38. Zamani M. Energy consumption and economic activities in Iran. Energy Econ 2007, 29:1135-1140.
39. Zhang X.P., Cheng X.M. Energy consumption, carbon emissions, and economic growth in China. Ecol Econ 2009, 68:2706-2712.
40. Albornoz F., Cole M.A., Elliott R.J., Ercolani M.G. In search of environmental spillovers. World Econ 2009, 32:136-163.
41. Görg H., Strobl E. Spillovers from foreign firms through worker mobility: an empirical investigation. Scand J Econ 2005, 107:693-709.
42. Cole M.A., Elliott R.J.R., Fredriksson P.G. Endogenous pollution havens: does FDI influence environmental regulations?. Scand J Econ 2006, 108:157-178.
43. Zarsky L. Havens, halos, and spaghetti: intangling the evidence about foreign direct investment and the environment 1999, OECD paper: CCNM/EMEF/EPOC/CIME (98)5.
44. Goldenman G. The environmental implications of foreign direct investment: policy and institutional issues 1998, vol. 3. OECD Paper. CCNM/EMEF/EPOC/CIME.
45. Xing Y., Kolstad C.D. Do lax environmental regulations attract foreign investment?. Environ Resour Econ 2002, 21:1-22.
46. Blanco L., Gonzalez F., Ruiz I. The impact of FDI on CO[U+2082] emissions in latin america 2011, Pepperdine University, School of Public Policy Working Papers. Paper 28. http://digitalcommons.pepperdine.edu/sppworkingpapers/28.
47. Copeland B.R., Taylor M.S. Trade, growth and the environment 2003, Working Paper, No. 9823, National Cambridge: Bureau of Economic Research working paper.
48. Levinson A. Environmental regulations and manufacturer's location choices: evidence from the census of manufacturing. JPublic Econ 1996, 61:5-29.
49. Hoffmann R., Lee C.G., Ramasamy B., Yeung M. FDI and pollution: a Granger causality test using panel data. JInt Dev 2005, 17:311-317.
50. Hassaballa H. Environment and foreign direct investment: policy implications for developing countries. JEmerg Issues Econ Finance Bank 2013, 1:75-106.
51. 2 emissions and economic growth in India. Renew Sustain Energy Rev 2011, 15:3243-3251.
52. Toda H.Y., Yamamoto T. Statistical inference in vector autoregression with possibly integrated process. JEcon 1995, 66:225-250.
53. 2 emissions, energy usage, and output in Central America. Energy Policy 2009, 37:3282-3286.
54. Alam M.J., Begum I.A., Buysse J., Van Huylenbroeck G. Energy consumption, carbon emissions and economic growth nexus in Bangladesh: cointegration and dynamic causality analysis. Energy Policy 2012, 45:217-225.
55. Lotfalipour M.R., Falahi M.A., Ashena M. Economic growth, CO2 emissions, and fossil fuels consumption in Iran. Energy 2010, 35:5115-5120.
56. Menyah K., Wolde-Rufael Y. Energy consumption, pollutant emissions and economic growth in South Africa. Energy Econ 2010, 32:1374-1382.
57. 2 emissions, energy use, and economic growth in Russia. Energy 2011, 36:5094-5100.
58. Adom P.K., Bekoe W., Amuakwa-Mensah F., Mensah J.T., Botchway E. Carbon dioxide emissions, economic growth, industrial structure, and technical efficiency: empirical evidence from Ghana, Senegal, and Morocco on the causal dynamics. Energy 2012, 47:314-325.
59. 2 emissions, energy consumption, and economic growth in Brazil'. Energy 2011, 36:2450-2458.
60. 2 emissions, nuclear energy, renewable energy and economic growth in the US. Energy Policy 2010, 38:2911-2915.
61. 2 emissions change from energy consumption in Brazil: challenges and policy implications. Energy Policy 2011, 39:1495-1504.
62. 2 emissions, energy consumption and economic growth in Turkey. Renew Sustain Energy Rev 2010, 14:3220-3225.
63. Soytas U., Sari R., Ewing B.T. Energy consumption, income, and carbon emissions in the United States. Ecol Econ 2007, 62:482-489.
64. Merican Y., Yusop Z., Mohd Noor Z., Law S.H. Foreign direct investment and the pollution in Five ASEAN Nations'. Int J Econ Manag 2007, 1:245-261.
65. Pesaran M.H., Shin Y. An autoregressive distributed-lag modelling approach to cointegration analysis. Econometrics and economic theory in the 20th century: the Ragnar Frisch Centennial Symposium 1999, 1-33. Cambridge University Press, Cambridge. S. Storm (Ed.).
66. Pesaran M.H., Shin Y., Smith R.J. Bounds testing approaches to the analysis of level relationships. JAppl Econ 2001, 16:289-326.
67. Narayan P.K. Reformulating critical values for the bounds F-statistics approach to cointegration: an application to the tourism demand model for Fiji 2004, Department of Economics Discussion Papers No. 02/04, Monash University, Melbourne, Australia.
68. Narayan P.K. An econometric model of tourism demand and a computable general equilibrium analysis of the impact of tourism: the case of Fiji Islands 2004, Department of Economics, Monash University, Melbourne, Australia, Unpublished PhD thesis.
69. Narayan P. The saving and investment nexus for China: evidence from cointegration tests. Appl Econ 2005, 37:1979-1990.
70. Engle R.F., Granger C.W.J. Co-integration and error correction: representation, estimation, and testing. Econometrica 1987, 55:251-276.
71. Phillips P.C., Hansen B.E. Statistical inference in instrumental variables regression with I (1) processes. Rev Econ Stud 1990, 57:99-125.
72. Wolde-Rufael Y. Bounds test approach to cointegration and causality between nuclear energy consumption and economic growth in India. Energy Policy 2010, 38:52-58.
73. Adom P., Bekoe W., Akoena S. Modelling aggregate domestic electricity demand in Ghana: an autoregressive distributed lag bounds cointegration approach. Energy Policy 2012, 42:530-537.
74. Granger C.W.J. Investigating causal relations by econometric models and cross-spectral methods. Econometrica 1969, 37:424-438.
75. Granger C.W.J. Some recent developments in a concept of causality. JEcon 1988, 39:199-211.
76. World Bank World development indicators database 2013 2013, [online], [accessed 03.09.13]. http://data.worldbank.org/data-catalog/world-development-indicators.
77. UNCTAD 2013, [online], [accessed 02.09.13]. http://unctadstat.unctad.org.
78. Dickey D.A., Fuller W.A. Distribution of the estimators for autoregressive time series with a unit root. Econometrica 1981, 49:1057-1072.
79. Phillips P.C.B., Perron P. Testing for a unit root in time series regression'. Biometrika 1988, 75:335-346.
80. Fuinhas J.A., Marques A.C. Energy consumption and economic growth nexus in Portugal, Italy, Greece, Spain and Turkey: an ARDL bounds test approach (1965-2009). Energy Econ 2012, 34:511-517.
81. Narayan P.K., Smyth R. Multivariate granger causality between electricity consumption, exports and GDP: evidence from a panel of Middle Eastern countries. Energy Policy 2006, 37:229-236.
82. Tang M. Examining the lagged effect of economic development on political democracy: a panel-VAR model. Democratization 2008, 15:106-122.
83. Zambian mining sector profile, ZDA 2013, [Online], [accessed 05.05.14]. http://www.zda.org.zm/sites/default/files/Zambia%20Mining%20Sector%20Profile%20-%20June%202013_0.pdf.
84. OECD OECD African economic outlook: democratic Republic of Congo 2008 2008, [Online], [accessed 02.05.14]. http://www.oecd.org/countries/democraticrepublicofthecongo/40577125.pdf.
85. Kenya Institute for Public Policy Research and Analysis Kenya economic report 2013, KIPPRA, [Online], [accessed 02.05.14]. http://www.kippra.org/downloads/Kenya%20Economic%20Report%202013.pdf.
86. OECD OECD economic surveys: South Africa 2013 2013, OECD Publishing. doi:10.1787/eco_surveys-zaf-2013-en.
87. Economy watch Zambia economic structure 2013, [online], [accessed 02.05.14]. http://www.economywatch.com/world_economy/zambia/structure-of-economy.html.
88. AEO African economic outlook: Republic of the Congo 2013, [Online], [accessed 02.05.14]. http://www.africaneconomicoutlook.org/en/countries/central-africa/congo-republic/.
89. Economy watch Zimbabwe economic structure 2013, [Online], [accessed 02.05.14]. http://www.economywatch.com/world_economy/zimbabwe/structure-of-economy.html.