Does economic growth stimulate energy consumption? The role of human capital and R&amp;D expenditures in China

Shahbaz, Muhammad; Song, Malin; Ahmad, Shabbir; Vo, Xuan Vinh

doi:10.1016/j.eneco.2021.105662

Cited by 103 publications

(32 citation statements)

References 99 publications

(57 reference statements)

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“…This implies that both in the short- and long-run, economic growth promotes energy consumption/demand in SA, but the impact seems to diminish over time. This is consistent with the findings of Richmond and Kaufmann ( 2006 ), Fang and Chang ( 2016 ), and Shahbaz et al ( 2022 ), and among others. Firstly, one of the possible explanations linked to economic growth’s short- and long-run positive significant impact on energy consumption is that the income level is needed and used by the government to invest in the energy sector to provide different types of energy for consumers within the economy.…”

Section: Empirical Results and Discussionsupporting

confidence: 93%

“…(iii) One of the implications of military expenditure is that it could crowd out social spending (that is, scarce productive resources are being diverted to non-productive pursuits (classical school)), and CO 2 emissions lead to environmental degradation (see, for example, Saba 2021 ; Saba and Ngepah 2020a , b , 2022 , among others). High military expenditure, according to the Keynesian school, boosts aggregate demand, improves infrastructure, boosts productivity, and lowers unemployment (see, for example, Saba 2020a , 2021a ; Saba and Ngepah 2020a , b , 2022 , among others). However, it is not only theoretical examinations that have failed to concur on the defence spending-growth nexus for SA; other empirical studies focusing on other countries/regions have also produced inconsistent results ( inter alia : Mosikari and Matlwa 2014 ; Saba and Ngepah 2019c ; Aye et al 2014 ; Phiri 2019 ).…”

Section: Introductionmentioning

confidence: 99%

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CO2 emissions-energy consumption-militarisation-growth nexus in South Africa: evidence from novel dynamic ARDL simulations

Saba

2022

Environ Sci Pollut Res

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This study draws ardent attention to the Sustainable Development Goal 13 (climate change mitigation) of the United Nations by investigating the CO 2 emissions-energy consumption-militarisation-economic growth nexus for South Africa (SA) from 1960 to 2019. The researcher applied frequency domain causality and the novel dynamic autoregressive distributed lag (ARDL) simulation approaches to achieve the research objective. The main findings reflected that (i) there is a long-run equilibrium relationship between the variables; (ii) there is no causality between militarisation and energy consumption; (iii) unidirectional causality runs from militarisation to economic growth; (iv) there is no causality between militarisation and CO 2 emissions; and (v) unidirectional causality runs from energy consumption to economic growth. The dynamic ARDL simulations’ main results suggest that (i) in the short-run, a positive and insignificant relationship exist between militarisation and CO 2 emissions. Conversely, a negative and significant relationship was recorded in the long-run. Thus, the treadmill theory of destruction is not valid for SA. (ii) In the short-run, economic growth has a positive and significant impact on CO 2 emissions, while in the long-run, economic growth has a negative and significant impact on CO 2 emissions. This implies the environmental Kuznets curve (EKC) hypothesis holds for SA. Overall, this research suggests a synergy between defence, energy, growth, and environmental policies in the short- and long-run to promote and maintain environmental quality in SA.

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Section: Empirical Results and Discussionsupporting

confidence: 93%

Section: Introductionmentioning

confidence: 99%

CO2 emissions-energy consumption-militarisation-growth nexus in South Africa: evidence from novel dynamic ARDL simulations

Saba

2022

Environ Sci Pollut Res

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“… 11 , 12 The relation between economic growth and energy consumption is well documented. 13 – 16 U-shaped relation between economic growth and environmental degradation, well-known as EKC first examined by Grossman and Krueger. 6 The concept, explains that at the initial stage of the economic growth, environment will be degraded and improvement will happen over time.…”

Section: Literature Reviewmentioning

confidence: 99%

Environmental risk of Covid-19 recovery

Haskuee

Asgary

2022

Energy & Environment

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During Covid-19 pandemic world economy experienced negative growth rate, therefore energy consumption and consequently emission pollution decreased. According to Environmental Kuznets Curve, it is expected that energy consumption and emission pollution increase in response to Covid-19 economic recovery, even higher than its pre-pandemic level. The goal of this paper is to study the environmental risk of Covid-19 economic recovery. We use an Environmentally-Augmented Global Vector Autoregressive Model (E-GVAR) to trace dynamic effects of Covid-19 economic recovery on pollution emission. Using generalized impulse response functions (GIRFs), we investigated the effect of positive economic shocks in real per capita income in China and USA economies on total [Formula: see text] equivalent emission pollution. The results show that positive economic recovery affects emission pollution significantly. China and emerging economies may experience high risk while Europe region is moderately affected by this positive shock. A positive Economic Shock in China decrease pollution emission in USA over time. It can be attributed to substitution effect of Chinese product in global market. Generally, our results demonstrate spillover effect of transition shocks from large economies to the rest of world and highlights the importance of linkages in the world economy.

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“…Economic growth theory suggests that technological progress increases the rate of economic growth in the long run and accelerates when the workforce is better educated; Therefore, human capital helps in technological progress and is one of the sources of sustainable growth. Increasing the rate of sustainable growth is achieved by increasing production capacity and investing in tangible and intangible assets, such as innovation, education, and training (Shahbaz, Song, Ahmad, Vo, 2022).…”

Section: Literature Reviewmentioning

confidence: 99%

Human capital and internet literacy impact on economic growth in Indonesia

Widarni¹,

Irawan²,

Harnani³

et al. 2022

JOMEINO

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This study investigates the development of human capital in Indonesia through investment in education and health by the Indonesian government on job participation and economic growth. Modeling "autoregressive vectors" used to understand the causal link between variables required 21 years, from 2000 to 2020. The World Bank and the Indonesian Central Statistics Agency provided secondary data for this study. We use the variables of education, health, internet literacy, work participation, and economic growth in Indonesia. We found that internet literacy has a significant effect on economic growth and also provides a significant boost to education and health. Where education and health are the main factors forming human capital that have an impact on the quality of human resources. Improving the quality of education from the education and health development process has an impact on job participation. Employment participation itself encourages increased investment in education and health. This can illustrate the role of internet literacy and human capital on economic growth in Indonesia where economic growth can be boosted by increasing internet literacy and human capital.

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Does economic growth stimulate energy consumption? The role of human capital and R&D expenditures in China

Cited by 103 publications

References 99 publications

CO2 emissions-energy consumption-militarisation-growth nexus in South Africa: evidence from novel dynamic ARDL simulations

CO2 emissions-energy consumption-militarisation-growth nexus in South Africa: evidence from novel dynamic ARDL simulations

Environmental risk of Covid-19 recovery

Human capital and internet literacy impact on economic growth in Indonesia

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