Usama Al-mulali and Che Normee Che Sab
– This study aims to investigate the impact of total primary energy consumption and CO2 emissions on the economic development in 16 emerging countries.
Abstract
Purpose
This study aims to investigate the impact of total primary energy consumption and CO2 emissions on the economic development in 16 emerging countries.
Design/methodology/approach
The panel model was used taking the period 1980-2008.
Findings
The results showed that a long-run relationship is present between total primary energy consumption, CO2 emission, and economic development in the countries under investigation. It was also found that both total primary energy consumption have a positive causal relationship with the economic development and other economic aspects playing an important role in achieving high economic performance with the consequence of higher pollution.
Practical implications
The main recommendation of this study is to increase their investment and government spending on green energy projects to increase the share of green energy out of their total energy consumption. This can be considered a good solution for their energy woes.
Originality/value
Different from the previous studies, it was also found that total primary energy consumption have a positive causal relationship with the economic development and other economic aspects playing an important role in achieving high economic performance with the consequence of higher pollution. In addition, there are a number of countries that had not investigated before.
Details
Keywords
The purpose of this paper is to investigate the relationship between the energy consumption and the economic growth in the USA and in a sectoral level by using monthly data from…
Abstract
Purpose
The purpose of this paper is to investigate the relationship between the energy consumption and the economic growth in the USA and in a sectoral level by using monthly data from January 1991 to May 2016.
Design/methodology/approach
While assessing the relationship at a country level, the authors also examine five sectors by using quantile causality.
Findings
The findings indicate the existence of a causality at the sectoral level in tails. More specifically, industrial and electric sectors cause the growth at the lower and higher levels. Residential, commercial and transportation sectors do not cause the growth in all levels. Total consumption causes the growth in the middle and low levels but not in the high level. Finally, the empirical evidence signifies an asymmetric relationship between the covariates.
Practical implications
The results imply that when the consumption deals conditions with fluctuation, it is likely to be affected by growth. In such a case, energy policies gear toward reducing or increasing energy intensity, improving energy efficiency, encouraging the use of alternative sources and investing in the development of technology.
Originality/value
The authors use, for the first time, the quantile causality for the case of energy consumption and economic growth. The quantile test is useful for a thorough comprehension of the causal relationship for this area. Compared to the OLS, which is used for the majority of causality tests, the quantile investigates the causality at the sectoral level in the tails.