The empirical analysis is based on several time series econometric methods, such as the cointegration test, two long run estimators, namely the fully modified ordinary least squares (FMOLS) and dynamic ordinary least squares (DOLS) methods, as well as the Granger causality test, to analyze the dynamic linkages among CO 2 emissions, the consumption of renewable and sustainable energy, the consumption of alternative and nuclear energy, gross domestic product (GDP), the squared value of GDP, and trade openness for each country. The insights from the empirical analysis should help policy makers and practitioners, as well as national governments, to design appropriate strategies for achieving common goals relating to economicgrowth, trade policy, environmental protection, and energy use.
The nexus between environmental pollutant, energyconsumption and economicgrowth has been the subject of considerable academic research over the past few decades. According to the Environmental Kuznets Curve (EKC) hypothesis, as output increases, carbon dioxide emissions increase as well until some threshold level of output was reached after which these emissions begin to decline. The main reason for studying carbon emissions is that they play a focal role in the current debate on the environment protection and sustainable development. Economicgrowth is also closely linked to energyconsumption since higher level of energyconsumption leads to higher economicgrowth. However, it is also likely that more efficient use of energy resources requires a higher level of economicgrowth.
The 21 st century has not only advanced the pace of globalisation among the world’s economies but has also documented an increasing competition level between developed and developing countries. With advancing globalisation and an increasing competition level, both developed and developing economies are closely linked with each other economically, socially, politically, and culturally. More specifically, developing countries want to increase economic activities, enhance physical and human capital formation, and desire to maintain their comparative advantages in the global economy. Developing countries also want to escape from the poverty trap through the process of growing industrialisation, urbanisation, and expanding production level. It is generally believed in economic theory that reducing poverty level requires a greater degree of government effort along with maintaining higher economicgrowth and sustainable development in developing countries. Without achieving sustainable development-driven higher economicgrowth, targeting the policy of poverty reduction perspective becomes effectual for developing countries at the local and global levels. Practically, it is often seen that most of the developing countries that are industrialised in nature are expanding their economic activities and production level. Therefore, their demand for energyconsumption has necessarily been increased in recent years. Energy is regarded as one of the potential inputs in the various departments of economic activities, indicating that it primarily helps households and business firms in mitigating their energy demand for consumption and production purposes. Hence, the socioeconomic importance of energy demand has created the recent debate among researchers and development practitioners. This suggests that developing countries need to be cautious about the efficient use of energy and the use of different sources of energy (i.e. renewable and non-renewable). Otherwise, developing countries will face greater challenges from rising CO 2 emissions (i.e.
theoretical and econometrical methodologies to arrive at certain conclusions. It is found that empirical researchers are far from agreement that the environmental Kuznets curve provides a good fit to the available data, even for conventional pollutants (Lakshmi & Sahu, 2012). Although a number of studies have examined the relationship between carbon emissions and economicgrowth in developing countries, the majority of these studies have mainly concentrated on the relevance of the Environmental Kuznets Curve (EKC). Very few studies have gone the full distance to examine the nexus between CO2emissions and economicgrowth. Even where such studies have been done, the focus has mainly been on Asia and Latin American countries. Studies on the causal relationship between carbon emissions and economicgrowth in sub-Saharan countries are very scant. In addition, the majority of the previous studies suffer from four major weaknesses; namely, 1) the use of a bivariate causality test, which may lead to the omission-of-variable bias; 2) the use of cross-sectional data, which does not satisfactorily address the country-specific effects; 3) the use of the maximum likelihood test based on Johansen (1988) and Johansen and Juselius (1990), which has been proven to be inappropriate when the sample size is too small (see Nerayan and Smyth, 2005); and 4) they employ unit root tests which fail to consider structural breaks. It is against this backdrop that the current study attempts to examine the inter-temporal causal relationship between CO2emissions and economicgrowth, using the newly developed ARDL-Bounds testing approach. By incorporating energyconsumption as an intermittent variable in a bivariate setting between CO2emissions and economicgrowth, we develop a simple trivariate causality model between CO2emissions, energyconsumption and economicgrowth (Odhiambo, 2011).
are related in the long-run and provide some evidence of inefficient use of energy in Tunisia, since environmental pressure tends to rise faster than economicgrowth. In the short run, results support the argument that economicgrowth exerts a positive “causal” influence on energyconsumptiongrowth. In addition, results from impulse response do not confirm the hypothesis that an increase in pollution level induces economic expansion. Although Tunisia has no commitment to reduce Greenhouse Gas emissions, energy efficiency investments and emission reduction policies will not hurt economic activities and can be a feasible policy tool for Tunisia.
been rising apprehension over the technique of ‘low carbon and green growth’. Specifically, the inquiry of whether it truly is feasible to reach constant economicgrowth not including growing energyconsumption or greenhouse gases has circled into a topic of particular consideration. Developing and underdeveloped countries have disagreed that some constraints on carbon energy would hinder economic expansion and recommended that industrial countries should increase funds to alleviate global warming, which is extensively measured as a result of emissions by industrial countries. This issue is moderately connected to post-Kyoto discussions over climate change, and therefore, it is vital to observe the association between the environment and economicgrowth by using empirical analysis tools.
emissions, without including other deterministic factors, such as renewable energyconsumption and/or trade. Katircioglu (2009) suggests that international tourism and international trade are two major factors that could have a long-run association with economicgrowth, mainly due to their contribution to revenues from foreign exchange. At the same time, the relationship between economicgrowth and international trade has been previously investigated in numerous studies, with their results being highly inconclusive (Gunduz and Hatemi-J, 2005). However, the relationship between international tourism and renewable energyconsumption has not been previously investigated. Therefore, including both international trade and renewable energyconsumption into the empirical analysis may have a substantial impact on environmental quality, and in this manner, the integration of these explanatory variables can provide more informative policy implications.
M’henni (2005) tests for the EKC hypothesis in Tunisia over the period from1980 to 1997. He makes use of the Generalized Method of Moments (GMM) and examines the following pollutants: CO 2 emissions, fertilizers concentration and the numbers of cars in traffic which served to calculate an index for environmental quality. He concludes that there is no evidence to support the EKC for any of these pollutants. In the same vein but with a different result, based on a cointegration analysis Chebbi et al. (2009) establish a positive linkage between trade openness and per capita emissions and a negative linkage between economicgrowth and per capita pollution emissions in the long-run. Again for Tunisia, Fodha et al. (2010) provide support for a long-run relationship between the per capita emissions of two pollutants and per capita GDP, indicating that there is a monotonically increasing linear relationship between per capita CO 2 emissions and per capita GDP, while the relationship between the other environmental indicator, i.e., and per capita GDP follows an N-shape, representing the EKC hypothesis. Akbostanci et al. (2009) examine the relationship between CO 2 , and PM 10 emissions, energyconsumption and economicgrowth in Turkey at two levels. They have looked for the EKC at national level and also for the 58 provinces in Turkey. They found a monotonic and increasing relationship at the national level. However, they found an N shaped curve at the level of provinces. Their findings do not support the EKC. Mehrara (2007) investigated the causal relationship between per capita energyconsumption and per capita GDP in oil exporting countries. In his sample, seven MENA countries were examined (Algeria, Bahrain, Iran, Saudi Arabia, Oman, Kuwait, and United Arab Emirates (UAE)). He
The paper investigates the existence of dynamic causality between the energyconsumption, environmental pollutions and economicgrowth using cointegration analysis for Bangladesh. First, we tested whether any long run relationship exist using Johansen bi-variate cointegration model which is complemented with auto-regressive distributed lag model introduced by Pesaron for the results robustness. Then, we tested for the short run and the long causality relationship by estimating bi-variate vector error correction modeling framework. The estimation results indicate that a unidirectional causality run from energyconsumption to economicgrowth both in the short and the long run; a bi-directional causality from electricity consumption to economicgrowth in long run but no causal relationship exists in the short run. A uni-directional causality run from CO2emissions to energyconsumption in the long run but it is opposite in the short run. CO2 granger cause to economicgrowth both in the short and in the long run, which is conflicting to the familiar environmental Kuznets curve hypothesis. Our results are different from existing analysis for electricity consumption and economicgrowth, however. The result of dynamic linkage between energyconsumption and economicgrowth significantly reject the ‘neo-classical’ assumption that energy use is neutral to economicgrowth. Hence clearly an important policy implication, energy can be considered as a limiting factor to the economicgrowth in Bangladesh and conservation of energy may harm economic spurs. Therefore, it is a challenge for the policy makers to formulate sustainable energyconsumption policy to support smooth energy supply for sustainable economicgrowth. 1. Introduction
This sacrifice can be in terms of redefining the goals & priorities of different sectors of the economy, implementation of pollution tax or command and control based regime and so on. One of the popular strategies to meet the fine tuned goals is to switch to renewable energy from primary (coal) based energy to meet the well defined sustainable development targets. This was proved in a study by Nathaniel, S., Nwodo, O., Sharma, G., & Shah, M. (2020) whereby they showed that whereby non-renewable energy were the real culprits in deterioration of environmental quality , renewable energy actually improved this quality in CIVETS countries. A study by Sikdar and Mukhopadhyay (2018) showed that for India , economicgrowth along with trade openness could lower emissions by exporting more of labour intensive environment friendly goods. Some authors including Lotfalipour, M. R. et.al. (2010) who too do not consent to EKC are of the opinion that economicgrowth and energyconsumption must be determined jointly using economic tools. This they say because according to them for an economy, efficient use of energy could be due to economicgrowth , while economicgrowth which is sustainable in turn may sometimes lead to an overall fall in energyconsumption for that economy.
OECD countries corresponding to the years between 1960 and 2001, for the purpose of examining how factors such as energyconsumption, economicgrowth, and capital stock were related to each other. They applied an aggregate production function. Their empirical results revealed a bidirectional causal relationship between energyconsumption and economicgrowth. Apergis and Payne  focused on the relationships between economicgrowth and coal consumption between 1980 and 2005. They selected a panel of 25 OECD countries applied with a dynamic error correction model. They confirmed the presence of a bidirectional causality relationship among all indicators. In South Africa, Menyah and Wolde-Rufael  carried out a research to explore the long-run and causal relationships that existed amongst energyconsumption, pollutant emissions, and economicgrowth; they applied the bounds testing approach to the cointegration process. Their results demonstrated the unidirectional causality that was running from CO 2 emissions towards the economicgrowth, from
Energy plays a fundamental role in economic development, since it is a vital force driving all eco- nomic activities. Energy demand in most countries in the world, has grown quite significantly due to rapid urbanization and population growth. Indeed, the United Nations Economic and Social Commis- sion for Asia and the Pacific (UNESCAP) avowed that the energy demands in developing countries are projected to growth for around 87 percent by 2030 (UNEP, 2011). Therefore, the rapid economicgrowth was guaranteed by largely functioning industries which requires more energyconsumption, though it leads to environmental degradation. There is still conflict on whether energyconsumption is a stimulating factor for, or a result of, economicgrowth.
These changes, additionally, have significant impacts on the functioning of ecosystems, the viability of wildlife, and the wellbeing of humans. Meanwhile, the predictions by the Assessment Report of the Intergovernmental Panel on Climate Change (IPCC) in 2007, has established that Africa is more vulnerable to global warming and climate change. This is evident in subsequent decline of water availability from 50% to 30% of population access and a decline of about 20% in agricultural yields across the continent in the last few years. Therefore, the complex nature of the relationship between pollutant emissions, energyconsumption and economicgrowth process has been a subject of inquiry among scholars and policy analysts since energy is considered as an important driving force of economicgrowth. An understanding of this tripartite relationship in Nigeria and other African countries becomes important in charting a pathway towards ensuring sustainable development.
2009; Pao & Fu 2013; Tugcu et al. 2012; Long et al. 2015; Shafiei & Salim 2014; Florez-Orrego et al. 2014; Farhani & Shahbaz 2014; Ben Jebli & Ben Youssef 2015; Shabbir et al. 2014). The golden result of most of these studies proves the significant role of renewable energyconsumption in the CO2 mitigation in various countries. Eventhough, some studies (e.g. Seker and Cetin, 2015) failed to find any evidence of short or long-run relationship between consumption of different energy resources- economicgrowth or consumption of different energy resources- CO 2 emissions.
and Yamamoto  procedure, investigate the energyconsumption, output and carbon emission nexus for China, controlling for capital and urban population. They found unidirectional long-run causality running from GDP to energyconsumption and from energy consump- tion to carbon emission. The study showed that neither carbon emission nor energyconsumption leads economicgrowth. Sari and Soytas  investigate the relationship between carbon emissions, income, energy and total em- ployment in five OPEC countries by employing the autoregressive distributed lag (ARDL) model of cointe- gration. Cointegration among the variables has been es- tablished only in Saudi Arabia. The study established that none of these countries namely Algeria, Indonesia, Nige- ria, Saudi Arabia and Venezuela need to sacrifice eco- nomic growth in order to reduce CO 2 emissions. Hali-
GHG emissions and climate change have attracted concerns of world leaders to find solutions to avoid global warming. Kyoto Protocol was then adopted in the late of 1997. Bahrain ratified Kyoto Protocol in 2006. The Protocol requires Bahrain to reduce GHG emissions to certain quantified limitation by taking appropriate measures for example enhancing energy efficiency, practicing sustainable development, formulating green policies and so on. Most emissions in Bahrain are associated with its dependency on oil industry and other fuel related industries. Therefore, this study is aimed to examine the causal relationship between economicgrowth, energyconsumption and emissions in Bahrain. To identify the relationship, we employ Toda and Yamamoto’s (1995) approach. This approach has two advantages as it does not require the data to be at the same order of integration and it also suits small but typical and finite sample size of data. In addition, the finding from this investigation is crucial as it may recommend steps that should be taken by Bahrain to reduce emissions without affecting her national output. This study finds that there are unidirectional relationship between output, capital, energy use, labour and emissions. It also finds that there is causality running from output to capital, energy use and emissions, but not vice versa. Based on these results, this study suggests emissions cut cannot be simply taken without sacrificing the economy. Nonetheless, other measures are recommended as discussed above, where Bahrain may gradually replace existing capitals with more energy efficient capitals. Bahrain also can find new energy resources. Adopting new energy policy with green energy resources may hurt current energy industry, but implementing small scale energy resources may be more viable and cost-effective.
Table-3 shows the average annual growth rates for each variable over 1975-2008. We although find that the average annual growth rate for renewable energyconsumption vary between countries and range from a low of -79.23% in Saudi Arabia, to a high of 60.21% in Syria. For all countries, all values do not exceed 5% per year except Syria. This result confirms that most of these countries do not invest in green technologies using renewable energy. In fact, some countries, such as Egypt, Cyprus and Tunisia, stand out for having a high economicgrowth. Thereby, the average annual of renewable energyconsumption in these countries is similar to their average annual growth rate in GDP per capita. It means that renewable energyconsumption is growing at about the same rate as economicgrowth. In Syria, the average annual growth rate for renewable energyconsumption is important and growing more rapidly than economicgrowth rate. Egypt and Tunisia are two countries that have a positive average annual growth rate in CO 2 emissions while Sudan has the lower and negative value of growth rate
I describe and compare the environment policies of European Union and of 12 Latin Americans economies. For this, I use com- mon statistical methods, such as non-parametric tests, conver- gence analysis (β y σ) and panel data, in order to verify the hypoth- esis that emissions and energy use in Latin America has been in- creasing since the mid-20th century. The statistical tests used con- firm the proposed hypothesis. I also rely upon the Environmental Kuznets Curve - whereby economies that are at the growth stage are more focused on achieving the latter than they are on environ- mental concerns and those which have already achieved growth focus more on environmental concerns-to take an alternative ap- proach by introducing the role of economicgrowth in the evolu- tion of energyconsumption and emissions. This chapter reaches the conclusion that energyconsumption and pollutant emissions in LA, in per capita terms, are converging. This suggests that the initial levels of the variables help to explain why some countries have increased emissions (in this case, energyconsumption) to a greater extent than other economies in the region. Evidence of convergence is also found, as well as a monotonic relationship be- tween the level of pollution and the level of development (consis- tent with the Environmental Kuznets Curve).
are several. First, VARs are extremely useful when there is little or ambiguous theoretical information regarding the relationships among the variables to guide the specification of the model. Second, and more importantly, VARs are explicitly designed to address the endogeneity problem, which is one of the most serious challenges of the empirical research on energyconsumption and economicgrowth. VARs help to alleviate the endogeneity problem by treating all variables as potentially endogenous and explicitly modeling the feedback effects across the variables. Third, impulse response functions based on VARs can account for any delayed effects on and of the variables under consideration and thus determine whether the effects between energyconsumption and economicgrowth are short–run, long–run or both. Such dynamic effects would not have been captured by panel regressions. Fourth, panel VARs allow us to include country fixed effects that capture time-invariant components that may affect energyconsumption and growth, and global time effects that affect all countries in the same period. Fifth, time fixed effects can also be added to account for any global (macroeconomic) shocks that may affect all countries in the same way. Last but not least, panel VARs can be effectively employed with relative short-time series due to the efficiency gained from the cross-sectional dimension.
and sources of energyconsumption. In particular, despite causality between economicgrowth and energyconsumption being bidirectional in the case of the full sample of coun- tries and of total energyconsumption (i.e. evidence for the feedback hypothesis), the same does not hold true for all sub-sources of energyconsumption and country income group- ings. For instance, the feedback hypothesis is only supported for oil energyconsumption (in the lower middle, upper middle and high income countries) and to a lower extent for electricity energyconsumption (only in lower middle income countries), while no signif- icance evidence of the feedback hypothesis is documented for renewable energy, natural gas and coal energyconsumption. Importantly, our findings do not point to any statis- tically significant evidence that renewable energyconsumption in particular is conducive to economicgrowth, a fact that weakens the argument that renewable energy consump- tion is able to promote growth in a more efficient and environmentally sustainable way. Finally, in analysing the case for an environmental Kuznets curve (EKC), we find that the continued process of growth aggravates the greenhouse gas emissions phenomenon. Put differently, CO2emissions increase with the level of development. In this regard, our findings do not provide any evidence that developed countries may actually grow-out of environmental pollution.