Decomposing scale and technique effects of economic growth on energy consumption: Fresh evidence from developing economies

Abstract

This study contributes by investigating the association between scale, technique and composition effects on energy consumption by considering financial development, oil prices and globalization as potential determinants of economic growth and energy demand. We have applied recent cointegration considering cross-sectional dependence and structural breaks introduced by Westerlund and Edgerton (2008). Furthermore, FMOLS, DOLS and Cup-FMOLS are applied to examine impact of scale effect, technique effect, composition effect, financial development, oil prices and economic globalization on energy consumption. The empirical results show that variables are cointegrated for long run relationship. Scale effect and technique effect are negatively and positively linked with energy consumption. Composition effect and economic globalization stimulate energy demand. Contrarily, financial development and oil prices decline energy consumption. This empirical analysis helps policy makers of developing economies in designing their comprehensive environmental policy for sustainable economic development in long-run.

Does agricultural development induce environmental pollution in E7? A myth or reality

“…Nonetheless, some areas, such as soil pollution, habitat destruction, resource scarcity and habitat destruction, hold out as environmental and economic challenges and appeal for further infrastructure in agriculture sustainability (Balsalobre-Lorente et al, 2019). Reynolds and Wenzlau (2012) and Sinha and Sengupta (2019) established that approximating supplementary industries which proofs that, cultivation needs power as a critical contribution to development. In particular, the agriculture industry utilizes non-renewable power bases, such as fossil fuels, coal, fume and oil and coke, for the operation of industrial machinery, for heating or cooling structures and for providing lighting systems on the farm, and unintentionally for fertilizers, equipment and pesticides manufactured out of the farm.…”

“…Focus ought to be put on non-fossil petroleum replacements for providing energy infrastructure in cultivation in emerging nations. Renewable energy techniques should be implemented in countless places around the realm for numerous farming implementations to mitigate greenhouse gas (CO2) consumption from fossil fuels, minimize energy market uncertainty impact on the environment, and thereby improve economic development (Tiwari 2011;Shafiei & Salim 2014, Shahbaz et al 2020.…”

The Energy Consumption-Environmental Quality Nexus in BRICS Countries: The Role of Outward Foreign Direct Investment (OFDI)

“…Many studies have attempted to evaluate the environmental Kuznets curve to identify the relation between GDP and the environment (Tiwari et al 2013;Shahbaz et al 2014;Apergis and Ozturk 2015). However, other studies considered real GDP per capita with carbon dioxide emissions, gross fixed capital formation, energy consumption, exports and imports to see its association (Akalpler & Hove 2019;Hao et al 2020;Shahbaz et al 2020;Sahoo & Sethi 2021). By employing the ARDL model, Jalil and Mahmud (2009) examined the EKC hypothesis between carbon emissions and per capita GDP in China.…”

Dynamic impacts of energy consumption on economic growth in China: Evidence from a non-parametric panel data model

“…First, we propose the use of non-parametric models to study the influence of energy consumption on economic growth. Previous studies have mostly used parametric models (Costantini & Martini, 2010;Shahbaz et al, 2020;Radmehr et al, 2021), and they have generally only considered the average effects of certain variables on economic growth. However, time exerts an important influence on the relationships between variables, and such relationships can be time-varying (Magazzino et al, 2021;Wang et al, 2021).…”