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Theoretical and Applied Economics
No. 2 / 2018 (615), Summer

The role of economic growth and energy consumption on CO2 emissions in E7 countries

Buhari DOĞAN
Süleyman Demirel University, Turkey
Osman DEĞER
Süleyman Demirel University, Turkey

Abstract. The purpose of this study is to analyze the relationship between carbon emissions, financial development, total energy consumption and economic growth by using panel data analysis in E7 countries (Brazil, China, Indonesia, India, Mexico, Russia and Turkey) for 1990-2014 period. The result of the panel analysis suggests that there is no long-term relationship between carbon emissions and financial development. A 1% increase in total energy consumption increases carbon emissions by 1.840%. A 1% increase in economic growth leads to an increase of 0.243% in carbon emissions over the long-term. To this end, it would be beneficial for policy makers to consider alternative growth models, along with alternative energy sources, to prevent environmental pollution.

Keywords: energy consumption, CO2 emissions, economic growth, E7 countries.

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The Economicity. The Epistemic Landscape, Marin Dinu, 2016

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