8 dynamic relationship between energy demand and its determinant factors in Nigeria. He found that per capita income growth, industrial development and urbanization are the most important factors raising the energyconsumption. Using a huge data set of 100 developed and developing economies, Madlener and Sunk  explored the effect of urbanization on urban structure and energy demand on urbanization. They discovered that urbanization affects energy demand through changes in urban structure. Further, they pointed out that urbanisation is source of economic development and that growth of income levels changes the consumer needs that in turn affect energy demand. Taking Iran as country case, Abouie-Mehrizi et al.  used energy demand function to explore the impact of population growth, urbanization and affluence on energyconsumption. The empirical results exposed that population growth, urbanization and affluence on energyconsumption have long run relationship and these variables increase energy demand. Shahbaz and Lean  studied the relationship between urbanization and energyconsumption in Tunisia. They found that financial development, industrialization and urbanisation contribute energyconsumption. In addition, urbanization and financial development lead industrialization, which Granger causes energy demand. Likewise, Islam et al.  also observed the bidirectional causal relationships between population and energyconsumption. In the case of Ghana, Adom et al.  investigated the impact of energy prices, income, industrial growth and urbanization on energyconsumption. They confirmed that energy demand and its determinants are cointegrated. Additionally, industrial growth affects negatively energyconsumption (electricity consumption) while income and urbanization increase energy demand.
The aim of this study is to examine the impact of tradeopenness, urban population, technology and economic growth on environment of Asian economies i.e. Bangladesh, Hong Kong, India, Indonesia, Iran, Malaysia, Pakistan, Philippines, Singapore, Sri Lanka, and Thailand. The specific objectives of this study are tend to evaluate the effect of tradeopenness, technology, urbanization and economic growth on surroundings and environment (CO2 and SO2 emission). This study measures environmental effect through Stochastic Impact by Regression on Population, Affluence, and Technology framework in selected Asian developing countries. Data covers the time period from 1980 to 2014. This study utilize panel unit root, panel cointegration, DOLS estimator and causality tests in order to establish the association between environment and selected macro-economic variables. The results obtain from carbon dioxide emissions model show the significant impact of growth and technology on carbon emissions. While results of sulfur dioxide emissions model indicates the existence of inverted U-shaped EKC hypothesis. The study concluded that there should be research and development programs at public and private level to control pollution through new technologies.
Table-1 results indicate that all the explanatory variables are statistically significant at given significant values. The per capita income in real term has positive relation with the energyconsumption in the long run. The estimated income elasticity for energyconsumption is 2.35, which reveals that as the income increases by one percentage point, per capita energyconsumption increase by 2.35 percent point. The positive relationship between per capita income and energyconsumption means that energy is a normal good and the people in Malaysia demand more for energy as the income level increases. Other variables of the model also have significant and positive influence on energyconsumption. The effect of consumption open to trade is highly significant on energy.
middle and low income countries. Their findings reveal that energyconsumption is Granger cause of tradeopenness 5 . Nasreen and Anwer  investigated the relationship between tradeopenness and energyconsumption by incorporating oil prices and economic growth in energy demand function using data of Asian countries. In case of Thailand, they found that tradeopenness increases energyconsumption but statistically insignificant. Oil prices reduce energy demand in Thailand. Their panel causality analysis reveals that the feedback effect is found between tradeopenness and energyconsumption. Sbia et al.  examined the relationship between clean energy, foreign direct investment, tradeopenness, carbon emissions, and economic growth in case of UAE. They applied the ARDL bounds testing for long run and the VECM Granger causality to test the causality between the variables. They noted that foreign direct investment and tradeopenness are negatively linked to energyconsumption and the bidirectional causality exists between tradeopenness and energyconsumption. Farhani et al.  examined the relationship between natural gas consumption and economic growth by incorporating tradeopenness as potential determinant of gas consumption and economic growth in case of Tunisia. They found the existence of cointegration between the variables and tradeopenness Granger causes natural gas consumption. Shahbaz et al.  used Chinese timeseries data to investigate the relationship between economic growth, financial development, tradeopenness and energyconsumption. They noted that tradeopenness (measured by trade, exports and imports) Granger causes energy demand. Shahbaz et al.  used production function for Pakistan to examine the relationship between economic growth, natural gas consumption and exports. Their analysis indicated that natural gas consumption causes economic growth and
This study reports that growth in the country stimulates the demand for energy that affects the energy prices. The results are helpful to the policy makers to understand the association among energyconsumption, energy prices and economic growth then formulate esteemed policies about the energy sector of Pakistan. As economic growth Granger causes energyconsumption, it recommends energy conservation policies should be adopted. The policy may have negligible or no adverse ef- fects on the growth of the country. This policy is also helpful to control the energy prices and hence inflation, to rescue the economy from adverse price shocks. Although, Pakistan is facing serious energy crisis but still there are some policy implications are available to conserve the energy. For example, energy can be conserved by advancing the standard clock by an hour in summer, imposing the time limits in markets in shopping centers and by restricting the night working shift in industries. Although, this study is conducted to bridge up the gap in the previous researches by consi- dering a trivariate model to overcome bivariate biasness and by considering energy prices, an impor- tant variable for energy-growth nexus, still there are some weaknesses. Some important variables and determinants of energy-growth nexus like capital, labour, tradeopenness, foreign direct invest- ment etc. are still neglected. Also, energyconsumption is not disaggregate levels; like effect of oil consumption on GDP, effect of coal consumption on GDP, effect of natural gas consumption on GDP, effect of electricity consumption on GDP and relationship between renewable energy and GDP is also not considered in this study.
This study covers the period from 1971 to 2013. Energyconsumption is defined as energy use (kg of oil equivalent per capita). Population (ages 15-64% of total) measures the proportion of the total population that is within the working age while Population (ages 65 and above % of total) is used the proportion of the total population that is above the working age (old and retired people). Urbanization is taken as the proportion of urban population to total population (Urban population % of total). The ratio of total trade (export and import) to GDP measures the degree of openness of the Nigerian economy to international trade. Two control variables are included to capture other important components of the Nigerian economy that can exert significant influence on energyconsumption. These include GDP per capita (constant 2005 US$) for economic growth and the ratio of domestic credit to private sector to GDP for financial development. Annual timeseries data on these variables are taken from the World Development Indicators (WDI), World Bank online database.
The new trade theories, which are attributable to the works of Krugman (1986), Brander and Spencer (1983), Dixit (1886, 1987), and Grossman (1992), however recognise that trade restrictions may be welfare-enhancing under certain conditions. The argument is that if domestic firms use such restrictions to acquire international market power, which is then used to prevent entry (e.g. especially through price wars) and increase their market shares, then lower prices and higher output may result due to economies of scale. Dynamic gains are therefore possible because there is high entry cost, high learning cost, and externalities in the protected industries. These externalities refer to those linked to accumulation of physical and human capital (education, on-the-job training, learning-by- doing), and in the production of new ideas (learn how to imitate as well as use blueprints to adapt technology, innovations, etc.). The new trade theories, therefore, justify government interventions (such as subsidies, for instance) that will enhance spill-overs in the economy. It is the existence of spill-overs in production lead to the increase in the long-run growth rate of the economy. This is so because positive spill-overs make possible constant or even increasing returns of the accumulated physical and human capital.
The country is located in hot-humid tropical region with much depleted wind speeds, and low variation of indoor air velocity. Air velocity in buildings only range between 0.04 m/s and 0.47 m/s, which is quite insufficient for indoor air movement . In Malaysia the major concern on energy efficiency is focused within these major sectors; transportation, industrial manufacturing, residential and commercial building design . Malaysia experienced high humidity and hot climate throughout the year. For occupants to survive this harsh climatic condition, Malaysian traditional houses were used for residential purposes. These houses were popularly known as the Malay house. These houses were built with lightweight materials such as wood and thatches. In addition, very wide openings of windows are made for proper natural ventilation. Nowadays, Malay traditional houses are hardly seen in city areas due to technological advancement. However, many of these building types are still in existence in the rural areas. Majority of the modern houses in Malaysian towns and city areas today are concrete and brick houses .
growth was larger than exports. This pattern is linked to more favorable in terms of trade due to increases in commodity prices in the past few years. The global economies faced negative trade shock in 2009. This negative trade shock was mainly due to massive contraction of global demand that reduced commodity prices in all regions of the world. The trade shock was strongest in transition economies and the economies of Western Asia and Africa. However, the similar situation does not exist in 2010. All WTO regions experienced double-digit increase in the dollar value of both exports and imports in 2010 due to rise in prices of fuel and other commodities. The top merchandise exporters in 2010 was China (US$ 1.58 trillion) followed by United States (US$ 1.28 trillion), Germany (US$ 1.27 trillion), Japan (US$ 770 billion) and Netherlands (US$ 572 billion). The leading merchandize importers in 2010 were United States (US$ 1.97 trillion), China (US$ 1.40 trillion), Germany (US$ 1.07 trillion), Japan (US$ 693 billion) and France (US$ 606 billion) (Source: World Trade Report, 2011).
fossil fuels (Kannan & Marappan, 2011; Sambo, 2005). Similarly, the activities of environmental campaigners over the years have informed various governments and other institutions about the need to reduce fossil fuel consumption. These activists advocate for a shift from fossil fuel to renewable energyconsumption in order to decrease carbon foot-print and mitigate climate change (Goshit et al., 2018; Ibeto et al., 2011; Parker and Blodgett, 2008). This is because, energy from renewable sources are clean, safe, inexhaustible and renewable. This most probably explains why investment in renewable energy all over the word is growing speedily and has assumed centre-stage in global energy investment. Rising from about US$22 billion in 2002 to about US$214 billion in 2013 (Agbongiarhuoyi, 2015) and US$286 billion in 2015, with countries like China and United States leading the way. Also, the contribution of renewable energy to total power generation in some biggest economies as at 2015 stood at 14% for the United States, 25.0% for China, 31.8% for Germany and 27.4% for the United Kingdom. For some countries, the contribution of renewable energy is above 50%. Iceland has achieved 100% of electricity production from renewable sources, Norway has 98.5%, Uruguay has 89.1. Brazil and Denmark have 75.0% and 69.2 % of their electricity from renewables respectively. In Nigeria and South Africa, the figure stood at 17.59% and 1.39% respectively (Word Development Indicators, 2018).
The paper investigates the long run and short-run effect of financial development on energyconsumption. The results indicate that financial development has significant effect on energyconsumption (electricity consumption, fossil fuel consumption, and aggregate energyconsumption). The findings of positive effect of the financial development on energyconsumption are in support of the findings of previous researchers (Faridul et al., 2011; Kakar et al., 2011; Bartleet & Gounder, 2010; Sadorsky, 2010; Dan & Lijun, 2009; Huang et al., 2008) who reported that financial development influence energyconsumption. Kakar et al., (2011) reported of positive effect of finance on energy demand for Pakistan and concluded that increase in financial development is associated with increases in energy demand. The findings are inconsistent with that of Yeboah and Ohene-Manu (2015) who reported of positive but insignificant effect of financial development on fossil fuel consumption in a multivariate energy demand model.
The pursuit of economic growth worldwide by human beings has resulted in rapid urbanization, industrialization and agricultural operations that are responsible for environmental degradation and pollution (Kijima et al., 2010). Reductions in environmental degradation and pollution are a sine qua non for sustainable development of any economy (Khan and Ullah, 2019). Among the greatest challenges facing humanity in the 21st Century is the extensive environmental degradation and pollution induced by increasing greenhouse gas emissions. Existing literature, (for example, those produced by Khan and Ullah 2019; Haigh, 2017; Li and Yang, 2016; Ramachandra et al. 2015; Abas and Khan, 2014; Gholipour, 2013; Karl and Trenberth, 2003), suggests that that greenhouse gases (GHG) emissions underpin global warming and climate change. GHGs comprise; carbon dioxide, ozone, methane, nitrous oxide, and water vapour. However, carbon dioxide emission is the principal GHG and a major cause for climate change and global warming (Khan and Ullah, 2019). The concentration of carbon dioxide emissions increased by 42% between 1990 and 2014 (Aung et al., 2017). The significant increase of carbon dioxide concentration in the atmosphere is mainly as a result of combustion of fossil fuels, industrial production and large-scale tropical deforestation (Sokolov et al., 2017). Timeseries on carbon dioxide emissions from fossil fuels go as far back in 1751 (Boden et al., 2011). Over the last 150 years, anthropogenic activities have accounted for almost all the increase in carbon dioxide emissions (O'Neill et al., 2017; Minx et al., 2017).
size. In other words, since trade generating industries were not supported by the gov- ernment in earlier periods, Turkish government size is not positively aﬀ ected by the degree of openness. Indeed, its long run eﬀ ect is negative in Table 3. An important factor that is eﬀ ective on this result is the private sector’s demand for funds as the country becomes more and more active in international trade. To establish its R&D structure, private sector competed with the government to acquire more funds from fi nancial markets, and this fact became a main factor that prevented the government to increase its size in parallel with rising openness. On the other hand, South Korea followed an opposite policy which fosters industrial and technological development via signifi cant government intervention according to OECD (2014, pp. 17-29). South Korean government aimed to support industries that are based on technological ad- vancements. At the fi rst stage, government spending focused on technological imita- tion process. Exporting technologically imitated products and increasing openness of the country, the South Korean government chose to increase its budget in parallel with the activity in international trade and, also, decided to shift to a second stage which Turkish government missed. As international trade and income per capita in- crease in South Korea, the government kept increasing its spending to continuously support the private sector, and demanded the private sector to create its R&D struc- ture with the help of the public funds. Unlike Turkey, South Korea has applied a development strategy highly dependent on technology intense exports. As a result, government expenditures are shaped by the performances of these export oriented industries. Also, welfare stemming from international trade continued to be redis- tributed to the public via increases in government spending. Thus, compared to the Turkish case, there are plenty of reasons for South Korea that lead to a positive coeﬃ - cient on the openness in the equation for government total expenditures.
Chaudhary, Safdar and Farooq (2012) examined the relationship between economic growth and energyconsumption in case of Pakistan by taking annual data for the period of 1972 to 2012, Study argued that demand for energy is growing quickly in the world and most of the economies are facing energy shortfall and as a result it is harshly affecting the economic growth of the countries. In case of Pakistan investment in the energy sector is insufficient and majority of commercial energy infrastructure is still underdeveloped and there are lots of ﬂaws in the demand and supply side especially relating to payments of energy sector. The result indicates that the utilization of electricity is signiﬁcantly enhancing economic growth among other sources of energy and because of high volume of imports oil consumption is also adversely affecting economic growth. This study has policy point there should be shift from expensive resources of energy like oil to cheap resources of energy like coal and Gas and government should make short run as well as long term plans to produce low price energy domestically.
South Africa has a high level of energyconsumption and a heavy dependence on energy imports. As such it relies heavily on coal as its main source of energy. This presents multiple problems; for one, the developed countries have been moving away from coal as an energy source for many years. In countries such as the United States for example, multiple coal mines have been shut down as the country moves forward. The complicated by concerns the fact that price of coal is increasing especially relative to other energy sources. This issue is also intertwined with the very harmful issue of the Greenhouse Effect which is a by-product of coal emissions. This leaves South Africa at a very crucial juncture in its history regarding its economic future.
Based on the significant positive effect of RPA on RPS for all the three sectors, the biggest change in domestic private investment is shown in the construction sector followed by the services sector. These results verify that the construction sector is regarded as having a higher degree of interdependence compared to the industry and trade sector and services sector. This sector gets higher benefits compared to the other sectors. Even though using the VAR approach, Pereira and Roca- Sagales (2001) have shown the same scenario as proven by the results of this study. However, their results showed that the positive effect of public capital is the highest in transportation and communication sector followed by manufacturing sector. On the other hand, construction sector receive the minimum positive effect. This scenario is consistent with Aschauer (1989b) who explained that public expenditure which is a complement to private sector production input is expected to have a large impact on the output of the private sector.
Fig. 2 shows that right after a shock in real devaluation, the trade balance would worsen in two first quarters. After that, the trade balance starts improving to get the peak in the 6th quarter. As observed, from the 5th quarter the trade balance obtains surplus but it does not last for long until quarter 6th. During later quarters, the trade balance experiences fluctuation in both surplus and deficit. Eventually, the trade balance will get the new equilibrium from quarter 13th based new market conditions. It also means that after three years from the shock in a real depreciation, the trade balance is able to get the new balance where exports and imports are seemly equal. The impulse response result also implies that the existence of J-curve effect in the relationship between exchange rate and trade balance. However, the J-curve pattern is still not really clear. In particular, the J curve only last for 6 quarters, equivalent to 18 months in which there are 12 months is in deficit and only 6 months in surplus after that, followed by ambiguous patterns.
The main purpose of this study is to evaluate and determine the effects of trade liberalization on the economic growth in Albania. The factors included in this project are, foreign direct investment (FDI), exchange rate, and tradeopenness. Tradeopenness was computed as the ratio of total of imports and exports to total exports. The methodology comprises the use of the above mentioned macroeconomics indicators which are all gathered by official institution database for an interval time of 10 years measured in quarterly bases’. Secondly a macroeconomic model will be performed in order to understand the impact and relationship of tradeopenness on economic growth (GDP). Finally based on the result from the statistics of all panel models, it is showed that tradeopenness and exchange rate has a significantly positive impact on economic growth.
data relates to carbon dioxide emissions from the consumption of fossil fuels but is generally referred to as emissions throughout the paper 3 . Yearly population figures of 43 countries were based on the HNPStats – the World Bank’s comprehensive database of Health, Nutrition and Population statistics. Classification of Asian countries by income level was based on the World Bank classification (Table 1). Affluence was captured by real GDP per capita in constant price (U.S Dollar) taken from the Economic Statistics branch of the United Nations Statistics Division (UNSD) national accounts main aggregates database. Energy efficiency (T) of economic activities was captured by the ratio of real GDP in US dollar to commercial energy use also obtained from UNSD.
One approach of the supporters of trade liberalization is based on the Environmental Kuznets Curves (EKC). From Ricardian comparative advantage theory to the Helpman- Krugman model of trade under imperfect competition, it is widely accepted that openness has positive effects on countries’ real income per capita. Antweiler et al. (2001) and Copeland and Taylor (2004) contributed to the literature by stating that increasing real income per capita impacts environmental quality in three different ways. First of all, the “Scale Effect” asserts increasing economic activity, ceteris paribus, which causes increased environmental degradation. Secondly, the “Composition Effect” comprises a structural change in the economy, or a shift in production from industrial manufacturing to knowledge intensive industries and the service sector. Finally, there is the “Technological Effect,” resulting from increasing environmental consciousness; this manifest itself in an increasing usage of eco-friendly technologies in production. The EKC hypothesis states that in initial phases of economic development the Scale Effect is dominant. After crossing a threshold of per capita income, the Composition and Technological Effects become more dominant, resulting in a reversal of pollution trends.