Factors Influencing Energy Consumption in the Context of Sustainable Development

Zaharia, Alina; Diaconeasa, Maria Claudia; Brad, Laura; Lădaru, Georgiana-Raluca; Ioanăş, Corina

doi:10.3390/su11154147

Cited by 84 publications

(60 citation statements)

References 56 publications

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“…The role of the energy sector is critical in meeting sustainability goals [44]. An effective financial system promotes customers to buy more products, leading to higher energy consumption [5].…”

Section: The Nexus Between Energy Consumption and Financial Developmentmentioning

confidence: 99%

Energy–Finance–Growth Nexus in ASEAN-5 Countries: An ARDL Bounds Test Approach

et al. 2019

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This study examines the relationship between energy consumption, financial development and economic growth for ASEAN-5 countries, namely Malaysia, Indonesia, the Philippines, Singapore and Thailand, over the period from 1980 to 2017. Finance-growth and energy-growth relationships have been well researched; however, the energy-finance-growth nexus is an equally important but less explored area. Our Auto Regressive Distributed Lags (ARDL) bounds test for cointegration results suggests that the variables tend to move together in the long run for all countries, apart from Indonesia. Our study also considers the effect of a structural break due to financial crisis and confirms that the break does not affect the long-term relationship among the variables; in other words, the financial crisis does not affect the energy-finance-growth nexus. Hence, considering the consistency of energy consumption, the importance of the energy sector must not be undermined, and appropriate energy policies are instrumental in maintaining a well-managed financial sector for sustainable economic growth.Sustainability 2020, 12, 5 2 of 16 demand [15], while the importance of financial variables in investigatng the energy-growth nexus is well documented by [16]. Financial development indicates the actual level of financial resources available for production and channels these funds through banks and stock markets [17]; thus, this promotes economic growth by boosting investment via transparent transactions for productive ventures [15]. A higher level of economic development through raising the capacity of the production sector and attracting foreign investment requires a stable power supply, which necessitates support by the financial sector through channeling resources to the energy sector [18]. A well-developed financial market makes financial resources available to high-return projects; at the same time, this implies better accounting and reporting standards, which increases investors' confidence [19], and attracts Foreign Direct Investment(FDI) [7]; which in turnaffects energy consumption. Similarly, financial development increases energy consumption by enhancing liquidity through the allocation of assets to appropriate ventures [15]. Hence, financial development affects the growth of an economy, which may influence energy consumption [20], and consequently, can act as the missing link in the energy-growth nexus [5]. With the growth in the economy, more productive inputs are needed which are supported by activities such as capital accumulation and energy expenditure where the role of finance is undisputable [21].However, to date, the nature of the relationship remains inconclusive from the relatively small amount of prevailing literature. Some researchers have found a negative relationship between energy consumption and financial development [22], while others detect a positive relationship [13,23]. Similarly, the results of the cointegration and causality analysis-based studies are also inconclusive. Several studies reported bidirectional ...

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Section: The Nexus Between Energy Consumption and Financial Developmentmentioning

confidence: 99%

Energy–Finance–Growth Nexus in ASEAN-5 Countries: An ARDL Bounds Test Approach

et al. 2019

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“…Similarly, the lockdown situation reduces energy demand and consumption, detruding the GDP, where energy policy planning is mainly linked to GDP growth (Jamil and Ahmad 2010 ). Energy consumption and climate change relationship are well documented in the literature (Martínez 2015 ; Parajuli et al 2019 ; Vasylieva et al 2019 ; Zaharia et al 2019 ). This study also tests and forecasts on how to abate in energy consumption due to this apneic situation that will affect climate change in Pakistan.…”

Section: Empirical Outcomesmentioning

confidence: 94%

How COVID-19 shock will drive the economy and climate? A data-driven approach to model and forecast

Khurshid

Khan

2020

Environ Sci Pollut Res

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The pandemic shock puts the world on quarantine and paused economic operations that affected energy consumption and economic output. This study analyzed the impact of the COVID-19 shock on GDP, energy consumption, and climate change then forecasted the situation until 2032 using the system dynamic modeling approach. The outcomes reveal that the pandemic shock will decrease the growth by 1.3% in 2020 and 1.32% in 2021. The current shortfall, low energy consumption, and delay in completion of energy-related projects can reduce the GDP by 5.2% in 2020. The effect will penetrate the system and will cause further losses in the upcoming years. The energy consumption and quarantine situation will improve the climate situation and drop the average temperature by 0.049 and 0.021 o C in 2020 and 2021. The aggregate demand and supply side measures such as national spending, lowering the lending rate, and cuts in income taxes can help in diffusing the situation. The government should start operations on ongoing energy projects, give relaxation to SME's with tight SOPs to secure jobs, and prevent possible GDP losses. The decline in oil prices provides an opportunity to cut fossil fuel subsidies and implement a carbon pricing mechanism.

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“…The increment trend has and is expected to increase the global energy demand particularly in urban areas of developing nations considering that these countries will account for 99% of the population growth and 50% of these individuals will be in major cities [3]. Energy increments are also attributed to industrial revolution and the need to realize the sustainable development goal number 17 on affordable and clean energy according to [4]. These anticipations though reasonable are against the current global efforts to mitigate climate change, which is a serious environmental crisis.…”

Section: Introductionmentioning

confidence: 99%

“…Evidence showing that cities are the greatest environmental polluters and climate change contributors from the 70% carbon dioxide emissions out of the total possible, most of which is anthropogenic-based confirms the need for alternative, reliable, easily accessible and low-carbon emitting energy sources [5]. Zaharia et al [4] agreed with these sentiments claiming that prosperity, population and non-renewable energy consumption in developing economies of Asia and Africa are attributable to the rise in pollutant emissions.…”

Section: Introductionmentioning

confidence: 99%

The Potential of Biomass in Africa and the Debate on Its Carbon Neutrality

Nyika¹,

Adediran²,

Olayanju³

et al. 2021

Biotechnological Applications of Biomass

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To enhance the energy security and promote energy diversity, biomass sources of energy are viable resources worldwide. Bioenergy is an organic source of power derived from various feedstock including fuel wood, energy crops, solid wastes, and residues of plants. This book chapter explores the use of biomass in Africa and the technical and economic potential of these resources for energy supply in the continent. Findings of literature revealed that the potential of biomass is high in Africa due to availability of land, its preference due to limited electricity supply and the exorbitant nature of fossil fuels, the assorted variety of energy crops suitable for growth in the continent and the green nature associated with the resource. The chapter also established that bioenergy is renewable and not carbon neutral. As such, accurate computation of its resultant greenhouse gas emissions based on their sequestration and emission rates is strongly advised to optimize biomass for energy utility and sustainability compared to conventional energy sources.

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Factors Influencing Energy Consumption in the Context of Sustainable Development

Cited by 84 publications

References 56 publications

Energy–Finance–Growth Nexus in ASEAN-5 Countries: An ARDL Bounds Test Approach

Energy–Finance–Growth Nexus in ASEAN-5 Countries: An ARDL Bounds Test Approach

How COVID-19 shock will drive the economy and climate? A data-driven approach to model and forecast

The Potential of Biomass in Africa and the Debate on Its Carbon Neutrality

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