The relationship between woody biomass consumption and economic growth: Nonlinear ARDL and causality

Bildirici, Melike; Özaksoy, Fulya

doi:10.1016/j.jfe.2017.01.002

Cited by 26 publications

(19 citation statements)

References 37 publications

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“…The results of both linear and nonlinear causality tests on the original time series support the neutrality hypothesis, i.e., there is no any causal relationship between energy consumption and economic growth in China from 1953 to 2013. These findings are consistent with the studies of Soytas and Sari [ 13 ], Chen, Kuo [ 15 ], Yalta and Cakar [ 19 ] and Bah and Azam [ 35 ], but contradictory with other studies such as Wang, Wang [ 18 ], Zhang and Yang [ 20 ], Tang, Tan [ 33 ], Bloch, Rafiq [ 21 ] and Bildirici and Ozaksoy [ 36 ].…”

Section: Discussionsupporting

confidence: 88%

Linear and nonlinear causal relationship between energy consumption and economic growth in China: New evidence based on wavelet analysis

Tan

Goh

2018

PLoS ONE

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The energy-growth nexus has important policy implications for economic development. The results from many past studies that investigated the causality direction of this nexus can lead to misleading policy guidance. Using data on China from 1953 to 2013, this study shows that an application of causality test on the time series of energy consumption and national output has masked a lot of information. The Toda-Yamamoto test with bootstrapped critical values and the newly proposed non-linear causality test reveal no causal relationship. However, a further application of these tests using series in different time-frequency domain obtained from wavelet decomposition indicates that while energy consumption Granger causes economic growth in the short run, the reverse is true in the medium term. A bidirectional causal relationship is found for the long run. This approach has proven to be superior in unveiling information on the energy-growth nexus that are useful for policy planning over different time horizons.

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Section: Discussionsupporting

confidence: 88%

Linear and nonlinear causal relationship between energy consumption and economic growth in China: New evidence based on wavelet analysis

Tan

Goh

2018

PLoS ONE

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“…Wood fuel such as charcoal or firewood is the most common form of biomass utilized in sub-Saharan African countries [9]. Sub-Saharan African nations of Burundi, Burkina Faso, Central African Republic, Chad, Gambia, Liberia, Rwanda, Uganda, and Sierra Leona have over 90% of their population said to be reliant on woody biomass energy [37]. Charcoal is mostly utilized in urban areas of the region, whereas firewood is predominantly consumed in rural areas of the region [37][38][39][40].…”

Section: Literature Reviewmentioning

confidence: 99%

“…Sub-Saharan African nations of Burundi, Burkina Faso, Central African Republic, Chad, Gambia, Liberia, Rwanda, Uganda, and Sierra Leona have over 90% of their population said to be reliant on woody biomass energy [37]. Charcoal is mostly utilized in urban areas of the region, whereas firewood is predominantly consumed in rural areas of the region [37][38][39][40]. Jones et al [40] found that in sub-Saharan Africa, four out of five people conventionally rely on solid biomass, primarily fuelwood for cooking, which makes it a source of food security.…”

Section: Literature Reviewmentioning

confidence: 99%

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Charcoal and Wood Biomass Utilization in Uganda: The Socioeconomic and Environmental Dynamics and Implications

et al. 2020

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Charcoal and firewood fuel biomass utilization is thought to be the main cause of deforestation in Uganda. Moreover, the practice of utilizing charcoal and wood fuel in Uganda is said to impact the health of many women and children in the region. The goal of this study was to comprehensively analyze charcoal and wood fuel utilization processes in Uganda and sub-Saharan Africa and the environmental and socioeconomic dynamics and implications. The study equally intended to model out some possible improvements to wood fuel use while conserving natural forests. Both qualitative and qualitative approaches were used to study the charcoal and wood fuel energy situation in Uganda. The study collected field data (sample size: 199) which was subjected to descriptive analysis. The findings show that over 90% of households in Uganda and the sub- Saharan region use firewood and charcoal wood fuel, and that this fuel use creates social and environmental hazards. Our findings are also in agreement with numerous empirical studies showing that firewood and charcoal biomass are among the major causes of deforestation in Uganda and the sub-Saharan region. Ceteris paribus, we propose the adoption of Improved Eco-Stoves (ICE), which not only enable comprehensive combustion but also lessen the quantity of firewood used by more than 60%, together with policy decisions on the government of Uganda, given peoples willingness to take on alternative energy sources such as gas and electricity.

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“…To consider the nonlinear behavior of variables, Shin et al [34] developed the method of NARDL by extending the Pesaran et al [35] bound test approach. The methodology of NARDL has been previously used by Ibrahim [36] for investigating the oil and food prices nexus, Bildirici and Ozaksoy [37] for the association between economic growth and woody consumption in South Africa, Bayramoglu and Yildirim [38] for the energy use and economic growth nexus in USA and Fareed et al [39] for the nexus of tourism, terrorism and economic growth and Kumar et al [40] for the asymmetric relationship between tourism and growth in Cook Island. Equation 4 is the modified version of Eq.…”

Section: Model Specification: Nardlmentioning

confidence: 99%

The asymmetric relationship between financial development and CO2 emissions: the case of Pakistan

et al. 2020

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The role of financial development for the environment has been extensively debated but the empirical results largely remain inconclusive. Empirical studies generally assume symmetric relationships, which can produce biased results. This study investigates the role of asymmetries in shaping the relationship of financial development (FD) with the environment by employing nonlinear autoregressive distributed lag (NARDL) model over the period 1972-2018. The structural unit root test of Zivot and Andrews indicates that all variables are integrated of order one and bound tests confirm long run relationship between the variables. The results validate the asymmetric association between FD and the environment as CO 2 emissions are largely affected by negative shocks in FD in the short and long run. The dynamic multiplier analysis also supports the results by showing the dominance of a higher impact of a negative component of FD on carbon emissions than a positive component. This study concludes that assuming the symmetric effect of FD on CO 2 emissions might be misleading. The study suggests that the policy makers may strive to achieve high growth rates using environmentally friendly financial development. Moreover, the negative asymmetric impact of FD needs to be considered in the development of financial sector.

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The relationship between woody biomass consumption and economic growth: Nonlinear ARDL and causality

Cited by 26 publications

References 37 publications

Linear and nonlinear causal relationship between energy consumption and economic growth in China: New evidence based on wavelet analysis

Linear and nonlinear causal relationship between energy consumption and economic growth in China: New evidence based on wavelet analysis

Charcoal and Wood Biomass Utilization in Uganda: The Socioeconomic and Environmental Dynamics and Implications

The asymmetric relationship between financial development and CO2 emissions: the case of Pakistan

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