Examining the Linkages among Carbon Dioxide Emissions, Electricity Production and Economic Growth in Different Income Levels

Abstract

Our industrialized world highly depends on fossil fuels to cover its energy needs. Although fossil fuels have been linked with economic growth, their use has also been found to have severe impacts on the environment. The linkages among carbon dioxide emissions, energy consumption and economic growth have been extensively examined in the current literature. The present study focuses on electricity production from fossil fuels, as well as from renewable sources and examines their linkages with CO2 emissions and economic growth in 119 world countries of different income levels, by assessing Granger causality. In addition, the Environmental Kuznets Curve (EKC) hypothesis is tested, in order to evaluate whether economic growth and carbon dioxide emissions are linked with an inverse U-shaped relationship and with an N-shape relationship in higher income levels. The EKC hypothesis is confirmed for high income and upper-middle income countries, but not for lower-middle and low income levels and a bidirectional Granger causality is found between GDP per capita and CO2 per capita in all income levels.

Investigating Carbon Emissions from Electricity Generation and GDP Nexus Using Maximum Entropy Bootstrap: Evidence from Oil-Producing Countries in the Middle East

“…From the 47 high-income countries of the sample, Bahrain presented the highest levels of electricity production from fossil fuels (0.021955 GWh/capita in 2006), while Qatar-one of the countries in our sample whose results do not appear in this article due to space restrictions-had the highest level of CO 2 emissions per capita for the whole period (the highest being observed in 2001). Those authors also show that their results confirm the EKC hypothesis and the existence of an inverted U-shape curve in the dynamic model for high-income countries-Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and UAE in our sample-and in both static and dynamic models for the upper-middle income countries which are, for our sample, the case for Iran and Iraq [49].…”

“…As expected, the results are different between countries, time periods, models, and time lags. Naturally, this variety of findings does not allow an implementation of common policies for all na- Our findings can be compared to those obtained by Halkos and Ckampoura [49] for a sample of 119 countries, for the period 2000-2018, using quadratic and cubic regression models. These models were constructed to examine the linkage between CO 2 emissions as a dependent variable, and GDP, electricity generation from fossil fuels, electricity generation from renewables, and population density as independent variables.…”

Why are some countries cleaner than others? New evidence from macroeconomic governance

“…Our empirical findings for UMICs confirm, in general, that real economic activity increases CO 2 emissions in these countries (Ahmed & Shimada, 2019 ; Bhat, 2018 ; Ummalla & Goyari, 2020 ), in particular regarding the positive effect running from government expenditures to CO 2 (Carlsson & Lundström, 2001 ; Fan et al, 2020 ), from international trade to CO 2 (Wu et al, 2021a , 2021b ), and from investment expenditures to CO 2 (Nugraha & Osman, 2018 ; Shahbaz et al, 2020 ). Our findings for LMICs also confirm, in general, that real economic activity increases CO 2 emissions in these countries (Antonakakis et al, 2017 ; Ben Jebli et al, 2020 ; Ehigiamusoe & Lean, 2019 ; Halkos & Gkampoura, 2021 ; Zaman & Moemen, 2017 ), specifically confirming the positive effect running from imports to CO 2 (Alola & Joshua, 2020 ) and from FDI to CO 2 (Lau et al, 2018 ; Shi et al, 2020 ).…”

Renewable Energy Consumption and Economic Growth in Uganda

“…(1-Y t =α 0 +X t-1 + + t-j + V 3t……….……………. (7) (1-Y t =α 0 +X where Δ is the first-difference operator, q is the lag length set at one based on likelihood ratio tests, and u is the serially uncorrelated error term.…”

“…There is an unprecedented effort to step up the consumption of renewable energy and promote sustainable growth and development [2]. Although studies on renewable energy consumption and economic growth have been done [3][4][5][6][7] none of those was carried out in Uganda. Related studies carried out for the case of Uganda are associated with Electricity consumption and Economic growth in Uganda [8][9][10][11][12].…”