Global evidence from the link between economic growth, natural resources, energy consumption, and gross capital formation

Topçu, Ebru; Altınöz, Buket; Aslan, Alper

doi:10.1016/j.resourpol.2020.101622

Cited by 186 publications

(73 citation statements)

References 53 publications

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“…Using the ARDL and an error correction model (ECM), Bal et al ( 2016 ) found a significant positive relationship between capital formation and economic growth in India from 1970 to 2012, while Udom et al ( 2020 ) demonstrated a positive association between capital formation and economic growth in Malaysia from 1980 to 2014. The same positive relationship between capital formation and economic growth was the conclusion of the studies by Adebola and Shahbaz ( 2015 ) and Topcu et al ( 2020 ).…”

Section: Literature Reviewsupporting

confidence: 80%

The dynamic links among energy consumption, tourism growth, and the ecological footprint: the role of environmental quality in 38 IEA countries

Khan

Hou

2020

Environ Sci Pollut Res

181

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We examine the impact of energy consumption and tourism growth on the ecological footprints and economic growth of 38 International Energy Agency (IEA) countries, as moderated by labor and capital, over the 1995-2018 period. We develop a comprehensive empirical analysis that applies second-generation unit root and cross-section dependence analysis. The cointegration analysis indicates long-run relationships among the variables, while the fully modified least square (FMOLS) approach specifies that energy consumption promotes economic growth and degrades environmental quality in the long run, and tourism growth improves environmental quality and stimulates economic growth in the long run. In addition, the result of a pairwise Granger causality test reveals bidirectional causality between energy consumption and economic growth and unidirectional causality from the ecological footprint to energy consumption. Policy implications for theory and practice and directions for future research in the area are presented.

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Section: Literature Reviewsupporting

confidence: 80%

The dynamic links among energy consumption, tourism growth, and the ecological footprint: the role of environmental quality in 38 IEA countries

Khan

Hou

2020

Environ Sci Pollut Res

181

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“…Numerous studies have been conducted in terms of the linkage between gross capital formation and GDP growth, although their findings are mixed. For instance, Topcu et al (2020) explored the interaction between gross capital accumulation and GDP by using the panel vector (PVAR) for the period between 1980 and 2018 for 124 economies. The author concluded that the impact of gross capital formation differs based on the country's income level.…”

Section: Empirical Reviewmentioning

confidence: 99%

Can CO2 emissions and energy consumption determine the economic performance of South Korea? A time series analysis

Adebayo

Awosusi

Kırıkkaleli

et al. 2021

Environ Sci Pollut Res

130

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Following the United Nations Sustainable Development Goals (UN-SDGs), which place emphasis on relevant concerns that encompass access to energy (SDG-7) and sustainable development (SDG-8), this research intends to reexamine the relationship between urbanization, CO 2 emissions, gross capital formation, energy use, and economic growth in South Korea, which has not yet been assessed using recent econometric techniques, based on data covering the period between 1965 and 2019. The present study utilized the autoregressive distributed lag (ARDL), dynamic ordinary least square (DOLS), and fully modified ordinary least squares (FMOLS) methods, while the gradual shift and wavelet coherence techniques are utilized to determine the direction of the causality. The ARDL bounds test reveals a long-run linkage between the variables of interest. Empirical evidence shows that CO 2 emissions trigger economic growth. Thus, based on increasing environmental awareness across the globe, it is necessary to change the energy mix in South Korea to renewables to enable the use of sustainable energy sources and establish an environmentally sustainable ecosystem. Moreover, the energy-induced growth hypothesis is validated. This result is supported by the causality analysis, which shows a one-way causality running from energy consumption to GDP in South Korea. This suggests that South Korea cannot embark on conservative energy policies, as such actions will damage economic progress. Additionally, a unidirectional causality is seen from CO 2 emissions and energy consumption to economic growth. These findings have far-reaching consequences for GDP growth and macroeconomic indicators in South Korea.

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“…Ha & Ngoc (2020) For the linkage between gross capital formation and GDP growth numerous studies have been conducted, however, their findings are mixed. For instance, Topcu et al (2020) explore the interaction between gross capital accumulation and GDP by using the Panel Vector (PVAR) covers the period between 1980 and 2018 for 124 economies. The author concludes the impact of gross capital formation differs based on the countries income level.…”

Section: Empirical Reviewmentioning

confidence: 99%

Can Co2 Emissions and Energy Consumption Determine the Economic Performance of South Korea? A Time-Series Analysis

Adebayo

Awosusi

Kırıkkaleli

et al. 2021

Preprint

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Following the United Nations Sustainable Development Goals (UN-SDGs) which emphases on relevant concerns that encompass access to energy (SDG-7) and sustainable development (SDG-8). This research tends to re-examine the interaction between urbanization, CO2, capital formation, energy use, and economic growth in South Korea, which has not yet been assessed using the recent econometric techniques and data stretching between 1965 and 2019. The present study utilized the Autoregressive distributed lag (ARDL), Dynamic Ordinary Least Square (DOLS), and Fully Modified Ordinary Least Squares (FMOLS) methods while for the causality direction the Gradual shift and Wavelet coherence method are utilized. The ARDL bounds test uncovers a long-run linkage between the variables of interest. Empirical evidence shows that emissions spur economic growth. Thus, there is also a necessity to change the energy mix in South Korea to renewables, based on increasing environmental awareness across the globe, to enable the use of sustainable energy sources and establish an environmentally sustainable ecosystem. Moreover, the energy-induced growth hypothesis is validated. This result is resonated by the causality analysis where energy consumption drives GDP one-way in South Korea. This suggests that South Korea cannot embark on energy conservative policies, as such actions will hurt economic progress. Additionally, unidirectional causality is seen between urbanization, trade opens, and economic growth. These findings have far-reaching consequences for GDP growth and macroeconomic indicators in South Korea.

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Global evidence from the link between economic growth, natural resources, energy consumption, and gross capital formation

Cited by 186 publications

References 53 publications

The dynamic links among energy consumption, tourism growth, and the ecological footprint: the role of environmental quality in 38 IEA countries

The dynamic links among energy consumption, tourism growth, and the ecological footprint: the role of environmental quality in 38 IEA countries

Can CO2 emissions and energy consumption determine the economic performance of South Korea? A time series analysis

Can Co2 Emissions and Energy Consumption Determine the Economic Performance of South Korea? A Time-Series Analysis

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