Empirical Relationship between Economic Growth, Energy Consumption and CO2 Emissions: Evidence from ASEAN Countries

Abstract

This study tested the EKC (environment Kuznets curve) framework for selected 9 ASEAN countries of the time period of 1970-2019. The EKC framework hypothesis checked under 2 linkages, first one is to examine the relationship between energy consumption, GDP and CO2 and the other one is energy consumption, GDP square and CO2. The study examines both long and short run effect of energy consumption, GDP, square of GDP on carbon emission. Firstly, used Levin Lin Chu and Lm Pasaran panel unit root test to check the order of integration of indicators further for short and long run estimates are examined by panel Auto Regressive Distributive lag (ARDL / PMG). Results of LLC, Lm Pesaran, reveals that the variables have mixed integration order. Due to the mixed order of integration, PMG results showed a rise in energy consumption by 1%, caused a rise in emissions by 0.8377%. Carbon emission (CO2) decreased by 0.1622%, by increase the square of economic growth while increasing economic growth by 1%, leading to boosts carbon emissions by 2.05%. The negative and positive effect of GDP and square of economic growth approve the EKC theory. Furthermore, this study suggests that to maintain sustainable economic expansion goals policy makers ensure the use of sustainable energy sources (renewable energy) to maximize growth of country and minimize carbon emission. It results carbon sequestration, protect green environment and safe lives.

Nexus of Electricity Demand, Circular Debt and Economic Progress: An Evidence from Pakistan

“…Several studies Altinay and Karagol (2005); Atif and Siddiqi (2010); Shiu and Lam (2004) estimate unidirectional electricity demand to economic progress causality. On contrary to the above discussion, some studies such as (Adom, 2011;Akinwale, Jesuleye, & Siyanbola, 2013;Ciarreta Antuñano & Zárraga Alonso, 2007;Hye & Riaz, 2008;Ozun & Cifter, 2007) elucidates the causality running from economic progress to electricity demand, while many researchers show an insignificant relationship between consumption of electricity and energy consumption (Aktaş & Yilmaz, 2008;Ciarreta Antuñano & Zárraga Alonso, 2007;Eden & Hwang, 1984;Gillani & Sultana, 2020). In addition, the progress of a country is measured by economic growth, which indicates how much the country's productive capacity increases over time.…”

Role of Green Finance, Trade Openness, FDI, Economic Growth on Environmental Sustainability in Pakistan

“…Green awareness is accepted as difficult knowledge that required different organization resources (Zeppini & van Den Bergh, 2011), like green finance. Green finance is not only for the decline in energy consumption but also has a significant effect on economic development as well as CO2 (Gillani & Sultana, 2020;Shen et al, 2021). The term green finance defined by (Lindenberg, 2014) means "green finances to enhance the level of financial flows (from banking, micro-credit, insurance, and investment) from the public, private and not-for-profit sectors to sustainable economic development.…”

Identifying the drivers responsible for energy security in selected ASEAN countries by using panel data analysis

“…The total degree of energy insecurity is decreased by more income and good governance (Le and Park, 2021). Gillani and Sultana (2020) have tested relationship between economic growth, energy consumption and CO 2 emissions for selected nine ASEAN countries using the EKC framework and have found the validity of the EKC in the case of those countries; that is, initially, the level of CO 2 emissions increases with the increase in economic development, and it decreases with more economic development in the later. Chontanawat (2020) has tested the same relationship in cases of Indonesia, Malaysia, the Philippines and Thailand using Granger causality and found that the first three countries support the conservative hypothesis while the last one supports the growth hypothesis.…”