Theoretical and Applied Economics
No. 4 / 2020 (625), Winter
Fossil fuel consumption, economic growth and CO2 emissions. Causality evinced from the BRICS world
Guru Nanak Dev University, India
Dr. Baljit KAUR
Guru Nanak Dev University, India
Abstract. The present study looks at the long term relationship among fossil fuel consumption, economic growth and CO2 emissions in the BRICS economy. The data runs from the period 1990- 2014. The unit root tests prove that the data contain unit root following which Pedroni’s and Kao’s cointegration test is applied. The results of cointegration prove that there is a long term relationship that exists. The long run estimates from DOLS and FMOLS show that increase in fossil fuel consumption will increase growth but at the same time with more carbon emissions the level of growth will decrease. Additionally increase in economic growth will reduce the amount of CO2 emissions thus favouring Kuznets inverted U hypothesis. Finally causality results are arrived at by using Dumitrescu-Hurlin panel causality technique. The results from causality tests show that unidirectional causality from energy to GDP; bidirectional relationship between emissions and GDP and unidirectional causality from fuel consumption to environmental degradation. The causality directions serve important policy implications for the government of the emerging economies to focus more on non-conventional sources of energy so as to keep the environment in the best of its health and at the same time make growth sustainable in the long run.
Keywords: energy consumption, economic growth, emissions, causality, BRICS.
Contents
- The European Union in the face of the prospect of achieving
major objectives in the conditions of the pandemic
and economic-financial crisis
Gabriela Victoria ANGHELACHE
Ștefan Daniel ARMEANU
Constantin ANGHELACHE
- Analysis of the correlation between taxation indicators
and economic growth at the macroeconomic level
in European Union and Romania
Cătălina MOTOFEI
- Measuring Adobe Company performance
from the perspective of a Complex Adaptive System
Nora CHIRIȚĂ
Andrei VIȘAN
Mihaela POPESCU
- Welfare enhancing uncertainty
Sravaitri CHAUDHURI
- Business process modeling.
Using Unified Modeling Language to streamline
the design of the TO-BE system within a company
Ionuț NICA
Ștefan IONESCU
- Static and dynamic analysis
of intra-industry trade of BRICS countries
Kuldeep Kumar LOHANI
- Fossil fuel consumption, economic growth and CO2 emissions.
Causality evinced from the BRICS world
Rochna ARORA
Dr. Baljit KAUR
- Methods used in risk financing
Ana Maria POPESCU
Ștefan Virgil IACOB
Alina Eliza DABIJA
- Analyzing Romania GDP:
Final consumption, gross investment, and net exports
influence compared to previously published models
Alexander I. VILLANUEVA
- Analysis of the natural movement of the population
under the spectrum of the health crisis
Constantin ANGHELACHE
Mădălina-Gabriela ANGHEL
Ștefan Virgil IACOB
- Testifying the role of regulatory environment in trade facilitation: Impact on intra-regional trade in South-Asia
Tanya GANDHI
Shahid AHMED
- India and trade blocs: A gravity model analysis
Arjun SINGH
Dr. S.P. PADHI
- Predicting the volatility in stock return of emerging economy:
An empirical approach
Aastha KHERA
Dr. Miklesh Prasad YADAV
- Portfolio optimization with VaR approach:
A comparative analysis for Japan, London, New York and India
Parul BHATIA
Priya GUPTA
- Income-dependent impacts of financial development
and human capital on economic growth.
A non-stationary panel analysis
Mohsen MOHAGHEGH
A.S. VALIPOUR
- Monetary policy and exchange rate pass-through in India
Bhavish SHARMA
- Impact of medium of instruction in education
on economic growth and development
Durbhita V VAISHNAV
- Institutions and economic growth:
A comparative analysis of developing
and developed countries based on institutionalized
social technologies index
Danish Ahmed SIDDIQUI
Qazi Masood AHMED
- Exports, imports and economic growth in India:
An empirical analysis
K. Krishna REDDY
- BEPS – A challenge for the increasing budget revenues
in the process of digitalization
Ionuț MIȘA
Meral KAGITCI
- Implementation of public policies.
The compatibility of the model of public policy
with the target space of the policy
Luminița Gabriela POPESCU
- Fiscal sustainability in Romania
Ioan-Radu PETRARIU
Lucian Constantin VÎLCU
Iulian Cornel LOLEA
Liana VLADU