Human capital, energy and economic growth in China: evidence from multivariate nonlinear Granger causality tests

Fang, Zheng; Wolski, Marcin

doi:10.1007/s00181-019-01781-7

Cited by 23 publications

(17 citation statements)

References 71 publications

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“…This result reflects the importance of education in dealing with climate change. This finding adds to inconclusive evidence in the literature and substantially add to the studies by Salim et al (2017) and Fang and Wolski (2017) who consider the effects of human capital on the consumption of energy and report negative to neutral effects in China.…”

Section: Ardl Cointegration Testsupporting

confidence: 67%

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Environmental implications of increased US oil production and liberal growth agenda in post -Paris Agreement era

Shahbaz

Kablan

Hammoudeh

et al. 2020

Journal of Environmental Management

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Contextualising on the internationally low oil prices era and historically high oil production in USA and refusal to honour the commitments under Paris Agreement (COP: 21), this study investigates the role of education, oil prices and natural resources on CO 2 emissions and energy demand in the USA for the period of 1976-2016. In so doing, we employed a bounds testing approach to cointegration which also accounts for the structural breaks. Key findings suggest the presence of a long-run association between underlying variables. The abundance of natural resources and economic growth of the US economy seem to weigh on environmental quality by increasing energy consumption and carbon emissions. Oil prices show a negative association with energy consumption as well as carbon emissions suggesting that a low oil price regime can lead to an increase in carbon emissions and energy consumption. Interestingly, education seems to play an important role by reducing energy consumption and carbon emissions, resultantly improving the US environmental quality. Our findings have profound environmental implications in terms of efforts to tackle climate change and meeting the Paris agreement (COP: 21) ambitions with reality and USA policy stance.

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Section: Ardl Cointegration Testsupporting

confidence: 67%

“…Similarly, the evidence on the investment in human capital and energy consumption is inconclusive and is lacking to shed much light on any reductions in resulting emissions (for instance, contrast Diks and Wolski2015,Ilesanmi and Tiwari 2017, Fang andWolski 2017).…”

mentioning

confidence: 99%

Environmental implications of increased US oil production and liberal growth agenda in post -Paris Agreement era

Shahbaz

Kablan

Hammoudeh

et al. 2020

Journal of Environmental Management

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“…During the 1982-2018 period, an independent causal relationship is observed between real GDP and PEC for all four countries, thus supporting the neutrality hypothesis. This finding is similar to those of Fang and Wolski [32] and Chiou-Wei et al [11], thus supporting the neutrality hypothesis in China and in the United States, Thailand, and South Korea, respectively. During the 1982-2001 period, a unidirectional causal relationship is observed running from PEC to real GDP in India, thus supporting the energy growth hypothesis that PEC has a significant impact on real GDP.…”

Section: Discussionsupporting

confidence: 89%

“…Fang and Wolski [32] supported the neutral hypothesis that energy consumption and EG are independent in China. In addition, Chiou-Wei et al [11] supported the neutrality hypothesis for the United States, Thailand, and South Korea.…”

Section: Hypothesis 4 (H4)mentioning

confidence: 86%

The Relationship between Primary Energy Consumption and Real Gross Domestic Product: Evidence from Major Asian Countries

Liu

2020

Sustainability

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This study examines the relationship between primary energy consumption (PEC) and real gross domestic product (real GDP) in the top four major energy consumers in Asia, namely, China, India, Japan, and South Korea. The study period is from 1982–2018, covering 37 years of data after the second oil crisis (1979–1981). Bootstrap panel Granger causality method is applied to examine the causal relationship between PEC and real GDP. This method is capable of controlling cross-sectional dimension and cross-country heterogeneity. In addition, few studies investigate the relevance of real GDP to energy consumption, although real GDP adjusted by inflation provides an accurate picture of a country’s economic situation. Our results contribute to existing literature in the field of PEC and real GDP. Through rigorous empirical research, we derive the main conclusion as follows. The real GDP and PEC of the top four energy consumers in Asia seem to be affected by the burst of the speculative Internet bubble from 2000–2001. Therefore, this study divides the research period into three periods: 1982–2018, 1982–2001, and 2002–2018. During the 1982–2018 period, an independent causal relationship is observed between real GDP and PEC for all four countries, thus supporting the neutrality hypothesis. During the 1982–2001 period, a unidirectional causal relationship running from PEC to real GDP is observed, thus supporting the energy growth hypothesis. Moreover, the coefficient is significantly negative in India; that is, PEC constrains economic development. Thus, the Indian government should reform its energy efficiency and consumption technologies to reduce energy waste. During the 2002–2018 period, an independent causal relationship is observed between real GDP and energy consumption for all four countries, thus supporting the neutrality hypothesis. This study then changes real GDP into nominal GDP and finds a unidirectional causal relationship running from PEC to nominal GDP in South Korea, thus supporting the growth hypothesis. A unidirectional causal relationship is also observed running from nominal GDP to PEC in India, thus supporting the energy conservation hypothesis. As mentioned above, we find that the relationship between PEC and real GDP adjusted by the GDP deflator is weaker than that between PEC and nominal GDP. Nominal GDP strengthens its relationship with PEC through the effect of prices for all the goods and services produced in an economy.

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“…The research conducted on energy use and supply from various sources in Pakistan recommended that the government should promote the commercial use of aggregated energy and its supply from various sources to overcome the existing energy crises in the country [29]. Fang and Wolski [30] studied the causal link between aggregate and disaggregate energy use with GDPs for 1965 to 2014 in China. The nonlinear multivariate Granger causality analysis was used along with an expanded production function by incorporating both human as well as physical capital.…”

Section: Literature Reviewmentioning

confidence: 99%

Analyzing long-term empirical interactions between renewable energy generation, energy use, human capital, and economic performance in Pakistan

Fatima

Ahmad

et al. 2019

Energ Sustain Soc

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Background: The current research attempts to systematically investigate the causal interactions between renewable energy generation, aggregated energy use, human capital, and economic performance in Pakistan both in a short-term and long-term test for the period of 1990-2016. Methods: As a primary step, a unit root analysis was conducted employing, among others, an augmented Dickey-Fuller-generalized least squares (ADF-GLS) test. Based on the order of integration I(1), the Johansen and Juselius (JJ) co-integration testing was employed to confirm a long-term causality analysis, which was followed by a vector error correction model (VECM) to calculate the short-run Granger causality analysis. Furthermore, the vector autoregressive (VAR)-based Cholesky test allowed the standard deviation impulse response functions to be generated to explain the responses of variables to arbitrary shocks in the data series under analysis. Results: The empirical findings unearthed the bilateral causal connection between aggregated energy use and economic performance, renewable energy generation and economic performance, and human capital and economic performance. Thus, it confirmed the existence of feedback effects for aggregated energy use, renewable energy generation, and human capital in their relation to economic performance. Likewise, a unilateral positive causal connection was revealed running from renewable energy generation and human capital to aggregated energy use, and from human capital to renewable energy generation in both a long-term and short-term test. Additionally, the causal association running from aggregated energy use and renewable energy generation to economic performance was exposed in a long-term as well as short-term test, hence supporting the growth hypothesis. Conclusions: The findings signified the importance of an enhanced generation of renewable energy along with the promotion of an aggregated energy use for the economic performance in Pakistan.

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Human capital, energy and economic growth in China: evidence from multivariate nonlinear Granger causality tests

Cited by 23 publications

References 71 publications

Environmental implications of increased US oil production and liberal growth agenda in post -Paris Agreement era

Environmental implications of increased US oil production and liberal growth agenda in post -Paris Agreement era

The Relationship between Primary Energy Consumption and Real Gross Domestic Product: Evidence from Major Asian Countries

Analyzing long-term empirical interactions between renewable energy generation, energy use, human capital, and economic performance in Pakistan

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