Do oil consumption and economic growth intensify environmental degradation? Evidence from developing economies

Applied Economics

Volumn 47, Issue 48, 2015, Pages 5186-5203

  Alam, Md Samsul ^a   Paramati, Sudharshan Reddy ^a  

^a GRIFFITH UNIVERSITY   (Australia)

Author keywords

CO2 emissions; developing economies; oil consumption; panel cointegration techniques

Indexed keywords

CARBON EMISSION; COINTEGRATION ANALYSIS; CONSUMPTION BEHAVIOR; ECONOMIC DEVELOPMENT; ECONOMIC GROWTH; ENVIRONMENTAL DEGRADATION; INDUSTRIALIZATION; OIL SUPPLY;

EID: 84938423108     PISSN: 00036846     EISSN: 14664283     Source Type: Journal    
DOI: 10.1080/00036846.2015.1044647     Document Type: Article

References (72)

1. A.E.Akinlo, (2008) Energy consumption and economic growth: evidence from 11 Sub-Sahara African countries, Energy Economics, 30, 2391–400. doi:10.1016/j.eneco.2008.01.008
2. 2 emission and economic growth in MENA countries, Energy, 36, 6165–71. doi:10.1016/j.energy.2011.07.048
3. 2 emissions and economic growth in India, Renewable and Sustainable Energy Reviews, 15, 3243–51. doi:10.1016/j.rser.2011.04.029
4. N.Apergis,, J.E.Payne,, K.Menyah, et al. (2010) On the causal dynamics between emissions, nuclear energy, renewable energy, and economic growth, Ecological Economics, 69, 2255–60. doi:10.1016/j.ecolecon.2010.06.014
5. A.Aqeel, and M.S.Butt, (2001) The relationship between energy consumption and economic growth in Pakistan, Asia-Pacific Development Journal, 8, 101–10.
6. N.B.Behmiri, and J.R.P.Manso, (2012a) Does Portuguese economy support crude oil conservation hypothesis?, Energy Policy, 45, 628–34. doi:10.1016/j.enpol.2012.03.013
7. N.B.Behmiri, and J.R.P.Manso, (2012b) Crude oil conservation policy hypothesis in OECD (organisation for economic cooperation and development) countries: a multivariate panel Granger causality test, Energy, 43, 253–60. doi:10.1016/j.energy.2012.04.032
8. N.B.Behmiri, and J.R.P.Manso, (2013) How crude oil consumption impacts on economic growth of Sub-Saharan Africa?, Energy, 54, 74–83. doi:10.1016/j.energy.2013.02.052
9. M.E.Bildirici, and F.Kayıkçı, (2013) Effects of oil production on economic growth in Eurasian countries: panel ARDL approach, Energy, 49, 156–61. doi:10.1016/j.energy.2012.10.047
10. BP (2007) The BP Statistical Review of World Energy. British Petroleum, London. Available at http://www.google.com.au/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0CB0QFjAA&url=http%3A%2F%2Fwww.bp.com%2Fcontent%2Fdam%2Fbp-country%2Fen_ru%2Fdocuments%2Fpublications_PDF_eng%2FStatistical_review_2007.pdf&ei=NlZDVfiJL8HemAWww4GYCA&usg=AFQjCNEol6YrRBbylVHq5vAoNVYj4B089Q&bvm=bv.92291466,d.dGY (accessed 4May 2015).
11. J.Breitung, (2000) The local power of some unit root tests for panel data, in Nonstationary Panels, Panel Cointegration, and Dynamic Panels, B.Baltagi, (Ed), JAI Press, Amsterdam, pp. 161–78, Advances in Econometrics, 15.
12. EIA (2014) Analysis and Projections, U.S. Energy Information Administration, Washington, DC, Available at http://www.eia.gov/forecasts/steo/report (accessed 4 May 2015).
13. R.F.Engle, and C.W.J.Granger, (1987) Co-integration and error correction: representation, estimation, and testing, Econometrica: Journal of the Econometric Society, 55, 251–76.
14. K.Fatai,, Oxley, L. and Scrimgeour, F. G. (2004) Modelling the causal relationship between energy consumption and GDP in New Zealand, Australia, India, Indonesia, The Philippines and Thailand, Mathematics and Computers in Simulation, 64, 431–45.
15. I.Fisher, (1932) Booms and Depressions: Some First Principles, Adelphi Company, New York.
16. G.M.Ghani, (2012) Does trade liberalization effect energy consumption?, Energy Policy, 43, 285–90. doi:10.1016/j.enpol.2012.01.005
17. S.Ghosh, (2010) Examining carbon emissions economic growth nexus for India: a multivariate cointegration approach, Energy Policy, 38, 3008–14. doi:10.1016/j.enpol.2010.01.040
18. G.M.Grossman, and A.B.Krueger, (1991) Environmental impacts of a North American free trade agreement, Working Paper in National Bureau of Economic Research No. 3914, MIT Press, Cambridge, MA.
19. 2 emissions, energy consumption, income and foreign trade in Turkey, Energy Policy, 37, 1156–64. doi:10.1016/j.enpol.2008.11.012
20. G.E.Halkos, and N.G.Tzeremes, (2011) Oil consumption and economic efficiency: a comparative analysis of advanced, developing and emerging economies, Ecological Economics, 70, 1354–62. doi:10.1016/j.ecolecon.2011.02.010
21. M.Hamit-Haggar, (2012) Greenhouse gas emissions, energy consumption and economic growth: a panel cointegration analysis from Canadian industrial sector perspective, Energy Economics, 34, 358–64. doi:10.1016/j.eneco.2011.06.005
22. 2 emissions in China’s road transport: current status, future trends, and policy implications, Energy Policy, 33, 1499–507. doi:10.1016/j.enpol.2004.01.007
23. 2 emissions, energy consumption, economic growth, trade openness and urbanization of newly industrialized countries, Energy Policy, 39, 6991–99. doi:10.1016/j.enpol.2011.07.042
24. IEA (2013) IEA Statistics. International Energy Agency, Paris, France. Available at http://www.iea.org/publications/freepublications/publication/co2emissionsfromfuelcombustionhighlights2013.pdf (accessed 28 April 2015).
25. K.S.Im,, M.H.Pesaran, and Y.Shin, (2003) Testing for unit roots in heterogeneous panels, Journal of Econometrics, 115, 53–74. doi:10.1016/S0304-4076(03)00092-7
26. A.Jalil, and M.Feridun, (2011) The impact of growth, energy and financial development on the environment in China: a cointegration analysis, Energy Economics, 33, 284–91. doi:10.1016/j.eneco.2010.10.003
27. P.R.Jena, and U.Grote, (2008) Growth-trade-environment nexus in India, in Proceedings of the German Development Economics Conference, Zurich.
28. V.Jensen, (1996). The pollution haven hypothesis and the industrial flight hypothesis: some perspectives on theory and empirics, Working Paper 5, Centre for Development and the Environment, University of Oslo, Oslo.
29. D.W.Jones, (1991) How urbanization affects energy-use in developing countries, Energy Policy, 19, 621–30. doi:10.1016/0301-4215(91)90094-5
30. C.Kao, (1999) Spurious regression and residual-based tests for cointegration in panel data, Journal of Econometrics, 90, 1–44. doi:10.1016/S0304-4076(98)00023-2
31. 2 emissions and economic growth: the case of Korea with nonlinear evidence, Energy Policy, 38, 5938–46.
32. N.Koch, (2014) Dynamic linkages among carbon, energy and financial markets: a smooth transition approach, Applied Economics, 46, 715–29. doi:10.1080/00036846.2013.854301
33. 2, GDP and RET: an aggregate economic equilibrium analysis for Turkey, Energy Policy, 36, 2694–708. doi:10.1016/j.enpol.2008.03.026
34. P.Lanoie,, B.Laplante, and M.Roy, (1998) Can capital markets create incentives for pollution control?, Ecological Economics, 26, 31–41. doi:10.1016/S0921-8009(97)00057-8
35. 2 emissions, electricity consumption and output in ASEAN, Applied Energy, 87, 1858–64. doi:10.1016/j.apenergy.2010.02.003
36. -C.-C.Lee, and C.-P.Chang, (2005) Structural breaks, energy consumption, and economic growth revisited: evidence from Taiwan, Energy Economics, 27, 857–72. doi:10.1016/j.eneco.2005.08.003
37. J.Loizides, and G.Vamvoukas, (2005) Government expenditure and economic growth: evidence from trivariate causality testing, Journal of Applied Economics, 8, 125–52.
38. G.Lucas,, N.Wheeler, and R.Hettige, (1992) The inflexion point of manufacture industries: international trade and environment, World Bank Discussion Paper No. 148.
39. H.Lütkepohl, (1982) Non-causality due to omitted variables, Journal of Econometrics, 19, 367–78. doi:10.1016/0304-4076(82)90011-2
40. J.G.MacKinnon,, A.A.Haug, and L.Michelis, (1999) Numerical distribution functions of likelihood ratio tests for cointegration, Journal of Applied Econometrics, 14, 563–57. doi:10.1002/(ISSN)1099-1255
41. G.S.Maddala, and S.Wu, (1999) A comparative study of unit root tests with panel data and a new simple test, Oxford Bulletin of Economics and Statistics, 61, 631–52. doi:10.1111/obes.1999.61.issue-S1
42. 2 emissions, nuclear energy, renewable energy and economic growth in the US, Energy Policy, 38, 2911–15. doi:10.1016/j.enpol.2010.01.024
43. A.Nahman, and G.Antrobus, (2005) Trade and the environmental Kuznets curve: is Southern Africa a pollution haven?, TheSouth African Journal of Economics, 73, 803–14. doi:10.1111/saje.2005.73.issue-4
44. I.Ozturk, and A.Acaravci, (2013) The long-run and causal analysis of energy, growth, openness and financial development on carbon emissions in Turkey, Energy Economics, 36, 262–67. doi:10.1016/j.eneco.2012.08.025
45. 2 emissions, energy consumption and economic growth in BRIC countries, Energy Policy, 38, 7850–60. doi:10.1016/j.enpol.2010.08.045
46. S.-Y.Park, and S.-H.Yoo, (2014) The dynamics of oil consumption and economic growth in Malaysia, Energy Policy, 66, 218–23. doi:10.1016/j.enpol.2013.10.059
47. P.Pedroni, (1999) Critical values for cointegration tests in heterogeneous panels with multiple regressors, Oxford Bulletin of Economics and Statistics, 61, 653–70. doi:10.1111/obes.1999.61.issue-S1
48. P.Pedroni, (2004) Panel cointegration: asymptotic and finite sample properties of pooled time series tests with an application to the PPP hypothesis, Econometric Theory, 20, 597–25. doi:10.1017/S0266466604203073
49. 2 emissions? A cross-country analysis, Ecological Economics, 70, 434–44. doi:10.1016/j.ecolecon.2010.09.029
50. 2 emissions: a case study of Chinas industrial sectors, China Economic Review, 28, 123–34. doi:10.1016/j.chieco.2014.01.003
51. P.Sadorsky, (2010) The impact of financial development on energy consumption in emerging economies, Energy Policy, 38, 2528–35. doi:10.1016/j.enpol.2009.12.048
52. P.Sadorsky, (2011) Trade and energy consumption in the Middle East, Energy Economics, 33, 739–49. doi:10.1016/j.eneco.2010.12.012
53. P.Sadorsky, (2012) Energy consumption, output and trade in South America, Energy Economics, 34, 476–88. doi:10.1016/j.eneco.2011.12.008
54. P.Sadorsky, (2013) Do urbanization and industrialization affect energy intensity in developing countries?, Energy Economics, 37, 52–9. doi:10.1016/j.eneco.2013.01.009
55. P.Sadorsky, (2014) The effect of urbanization and industrialization on energy use in emerging economies: implications for sustainable development, American Journal of Economics and Sociology, 73, 392–409. doi:10.1111/ajes.2014.73.issue-2
56. 2 emissions in Bangladesh, Renewable and Sustainable Energy Reviews, 31, 575–86. doi:10.1016/j.rser.2013.12.028
57. U.Soytas, and R.Sari, (2009) Energy consumption, economic growth, and carbon emissions: challenges faced by an EU candidate member, Ecological Economics, 68, 1667–75. doi:10.1016/j.ecolecon.2007.06.014
58. D.I.Stern, (1993) Energy and economic growth in the USA: a multivariate approach, Energy Economics, 15, 137–50. doi:10.1016/0140-9883(93)90033-N
59. A.Tamazian,, J.P.Chousa, and K.C.Vadlamannati, (2009) Does higher economic and financial development lead to environmental degradation: evidence from BRIC countries, Energy Policy, 37, 246–53. doi:10.1016/j.enpol.2008.08.025
60. A.Tamazian, and B.B.Rao, (2010) Do economic, financial and institutional developments matter for environmental degradation? Evidence from transitional economies, Energy Economics, 32, 137–45. doi:10.1016/j.eneco.2009.04.004
61. S.Z.Tsani, (2010) Energy consumption and economic growth: a causality analysis for Greece, Energy Economics, 32, 582–90. doi:10.1016/j.eneco.2009.09.007
62. Y.Wolde-Rufael, (2004) Disaggregated industrial energy consumption and GDP: the case of Shanghai, 1952–1999, Energy Economics, 26, 69–75. doi:10.1016/S0140-9883(03)00032-X
63. Y.Wolde-Rufael, and K.Menyah, (2010) Nuclear energy consumption and economic growth in nine developed countries, Energy Economics, 32, 550–6.
64. A.W.Wyckoff, and J.M.Roop, (1994) The embodiment of carbon in imports of manufactured products: implications for international agreements on greenhouse gas emissions, Energy Policy, 22, 187–94. doi:10.1016/0301-4215(94)90158-9
65. H.-Y.Yang, (2000) A note on the causal relationship between energy and GDP in Taiwan, Energy Economics, 22, 309–17. doi:10.1016/S0140-9883(99)00044-4
66. R.York,, E.A.Rosa, and T.Dietz, (2003) STIRPAT, IPAT and ImPACT: analytic tools for unpacking the driving forces of environmental impacts, Ecological Economics, 46, 351–65. doi:10.1016/S0921-8009(03)00188-5
67. J.Yuan,, C.Zhao,, S.Yu, et al. (2007) Electricity consumption and economic growth in China: cointegration and co-feature analysis, Energy Economics, 29, 1179–91. doi:10.1016/j.eneco.2006.09.005
68. J.-H.Yuan,, J.-G.Kang,, C.-H.Zhao, et al. (2008) Energy consumption and economic growth: evidence from China at both aggregated and disaggregated levels, Energy Economics, 30, 3077–94. doi:10.1016/j.eneco.2008.03.007
69. M.Zamani, (2007) Energy consumption and economic activities in Iran, Energy Economics, 29, 1135–40. doi:10.1016/j.eneco.2006.04.008
70. X.-P.Zhang, and X.-M.Cheng, (2009) Energy consumption, carbon emissions, and economic growth in China, Ecological Economics, 68, 2706–12. doi:10.1016/j.ecolecon.2009.05.011
71. Y.-J.Zhang, (2011) The impact of financial development on carbon emissions: an empirical analysis in China, Energy Policy, 39, 2197–203. doi:10.1016/j.enpol.2011.02.026
72. G.Zou, and K.W.Chau, (2006) Short- and long-run effects between oil consumption and economic growth in China, Energy Policy, 34, 3644–55. doi:10.1016/j.enpol.2005.08.009