Energy intensity, carbon emissions, renewable energy, and economic growth nexus: New insights from Romania

Abstract

This study empirically examines the relationship between energy intensity, carbon emissions, renewable energy consumption, and economic growth for the case of Romania given the conflicting evidences in the literature between 1990 and 2014 on a quarterly basis. To this end, our study employs an autoregressive distributive lag (ARDL) model for cointegration, while direction of causality was achieved via the Toda–Yamamoto model. Empirical findings reveal cointegration among the variables under consideration. The causality results show feedback causality between energy intensity and economic growth while uni-directional causality is seen running from renewable energy consumption to economic growth. Thus, this study affirms the energy-led growth hypothesis. Therefore, our study corroborates with the current success story of Romania attaining her energy targets within two decades. However, there is need to sustain this milestone by further diversification of her energy portfolio into other cleaner energy sources.

The role of globalization in modulating the effect of environmental degradation on inclusive human development

“…This is essentially because CO 2 comprises about three-quarters of global greenhouse gas emissions (Akpan & Akpan, 2012;Asongu, le Roux & Biekpe, 2018). Moreover, according to McGrath (2018) and You and Lv (2018) and attendant literature, CO 2 emissions are at an all-time high and globalization (used in this research as a moderating variable) is a determining factor (Emir & Bekun, 2019;Saint Akadiri, Alola, Akadiri & Alola, 2019;Alola, Yalçiner, Alola & Saint Akadiri, 2019a;Alola, Bekun & Sarkodie, 2019b;Bekun & Agboola, 2019;Bekun & Akadiri, 2019;Bekun, Alola & Sarkodie, 2019a ;Bekun, Emir & Sarkodie, 2019b).…”

Does agricultural value added induce environmental degradation? Empirical evidence from an agrarian country

“…This trend has resulted in Nigeria and ten other countries being ranked as having the worst ambient air in the world, which has increased maternal mortality according to the a report by the Health Effect Institute (HEI,2018). To ameliorate this menace, farmers' awareness must be increased regarding efficient energy sources, especially when there is global awareness for cleaner and sustainable energy (Emir & Bekun, 2018). Thus, the need to invest in research and development to discover alternative cleaner energy sources such renewable energy(e.g.…”

“…This position to increase and improve renewable energy sources has been advocated by policymakers. For instance the following empirical studies shed more insight on the need for paradigm shift to renewable energy sources and technologies (Bekun & Agboola, 2019;Samu et al, 2019;Balcilar et al, 2019;Emir & Bekun, 2018;Ajayi &Ajayi,2013).…”

“…Environmental sustainability has been a priority of most if not all economies. The necessity for management, conservation, and sustainability of the world's flora and fauna is pertinent, especially considering the increasing global consciousness for friendlier and cleaner energy sources (Emir & Bekun, 2018). The 2015 Paris Agreement under the United Nations Framework Convention on Climate Change (UNFCCC) further strengthens this position.…”

Electricity Consumption and Economic Growth Nexus: Evidence from Maki Cointegration

“…This discussion was first introduced to the energy economics literature by the seminal studies of Kraft and Kraft (1978), where they investigated the causal nexus between energy consumption and economic growth for the United States. The study of Kraft and Kraft was an investigation of numerous studies Emir & Bekun, 2018;Balcilar et al, 2010;Damette & Seghir, 2013;Narayan & Smyth, 2008). However, the literature can be classified into four strands, namely: those that claim that energy consumption drives economic growth (Damette & Seghir, 2013;Ghali & El-sakk, 2004); those that asserts that economic activities translate into higher electricity consumption, what is called in the literature conservative hypotheses (Baranzini et al, 2013;Jamil & Ahmad, 2010); the third group (Lee et al,2008;Tang & Tan, 2013) is called the feedback hypothesis in the literature in which there exists a bi-directional causal relationship seen from both energy consumption and economic growth; and finally the fourth group (Halicioglu, 2009;Soytas & Sari, 2006) is known as the neutrality hypothesis where there is no causal interaction between energy consumption and economic growth.…”