CO2 emissions, GDP and energy intensity: A multivariate cointegration and causality analysis for Greece, 1977–2007 (original) (raw)

On the Dynamic Linkages between CO2 Emissions, Energy Consumption and Growth in Greece

EUROPEAN RESEARCH STUDIES JOURNAL, 2014

This paper attempts to analyze the short-and long-run causal dynamic interactions between energy consumption, CO 2 emissions and economic growth in Greece, using time-series techniques. To this end, annual data covering the period 1980-2012 are employed and tests for unit roots, the ARDL-bounds approach of cointegration, and Granger-causality based on error-correction models are applied. The results reveal strong feedback in the long-run between all the examined variables. For the shortrun, there is evidence of two-way causality in all examined pairs with only exception the direction CO2 towards GDP.

The decomposition of CO 2 emissions from energy use in Greece before and during the economic crisis and their decoupling from economic growth

A B S T R A C T Greece recorded a significant decline in CO 2 emissions from energy use from 2003 to 2013, accompanied by a reduction in energy consumption, particularly during the economic recession. This study attempts to identify the driving forces of CO 2 emissions related to energy consumption, through the use of the complete decomposition technique developed by JW Sun. The decomposition analysis focuses on the four factors responsible for CO 2 emissions: the carbon intensity effect, the energy intensity effect, the structural effect, and the economic activity effect. The analysis covers all the major productive sectors of the Greek economy. The study covers the period 2003–2013 and is divided into two subperiods (2003–2008 and 2008–2013), in order to assess changes in the contribution of the examined factors during the economic crisis (2008–2013). The analysis is extended to examine the decoupling relationship between CO 2 emissions and economic growth in Greece with the use of the decoupling index.

Cross Country Evidence on the Cointegration and Causality Relationships Between Economic Growth and CO2 Emissions in OECD Countries

This article aims to verify the existence of a relationship of cointegration and causality between economic growth and CO2 emissions in 22 member countries of the OECD, in a time series from 1961 to 2011. The results indicate that economic growth and CO2 are in balance in the long run for ten countries. The causality test showed a bilateral relationship, suggesting that variations in economic growth cause CO2 emissions and CO2 emissions cause economic growth. Long and short-term alternative measure, such as reforestation, the fight against deforestation, the use of wind, nuclear, and solar power, electric vehicles, incentives for the use of public transport, capture and storage of CO2 are recommended for countries that CO2 caused economic growth. Thus, it is concluded that there is evidence of long-term and causal relationships between economic growth and CO2 emissions.

CO 2 emissions, energy consumption and economic growth in Turkey

Renewable & Sustainable Energy Reviews, 2010

This study examines the cointegration and causal relationship between economic growth, carbon dioxide (CO 2 ) emissions and energy consumption in selected Association of Southeast Asian Nations (ASEAN) countries for the period 1971e2009. The recently developed Autoregressive Distributed Lag (ARDL) methodology and Granger causality test based on Vector Error-Correction Model (VECM) were used to conduct the analysis. There was cointegration relationship between variables in all the countries under the study with statistically significant positive relationship between carbon emissions and energy consumption in both the short and long-run. The long-run elasticities of energy consumption with respect to carbon emissions are higher than the short-run elasticities. This implies that carbon emissions level is found to increase in respect to energy consumption over time in the selected ASEAN countries. A significant non-linear relationship between carbon emissions and economic growth was supported in Singapore and Thailand for the long-run which supports the Environmental Kuznets Curve (EKC) hypothesis. The Granger causality results suggested a bi-directional Granger causality between energy consumption and CO 2 emissions in all the five ASEAN countries. This implies that carbon emissions and energy consumption are highly interrelated to each other. All the variables are found to be stable suggesting that all the estimated models are stable over the study period.

The Relationship Between Economic Growth and CO2 Emissions in EU Countries: A Cointegration Analysis

Frontiers in Environmental Science

This paper explores the dynamics of the relationship between economic growth and CO2 emissions in the 27 EU member states in a panel setting for the period 2000–2017. We use qualitative sequential methodology, involving empiric analysis that provides coherence and viability for our study, but also quantitative methods, including Dynamic Ordinary Least Squares (DOLS), unit root tests and cointegration techniques. The results suggest the existence of a long run cointegrating relationship between growth and CO2 emissions in EU countries and the DOLS method indicates a statistically significant effect of economic growth on CO2 emissions for both versions of estimators, revealing that on average, a 1% change in GDP leads to 0.072 change in CO2 emissions. The study also exhibits that higher income levels lead to increased demand for environmental protection and underline the need for designing environmental policies, capable to reduce emissions during periods of economic growth. Moreover,...

A Cointegration Analysis of Economic Growth and CO2 Emission: A Case Study of Malaysia.

Environmental Management and Sustainable Development, 2020

The paper aims to establish a long-run and the Granger causal relationship between economic growth, emissions, international trade, energy consumption, and population density in Malaysia. The study will use annual data from 1970 to 2014. A unique cointegrating relationship between our variables was identified. The study employed the Auto-Regressive Distributed Lag model to examine the Environmental Kuznets Curve. Our empirical results analysis showed a long-run relationship between per capita emissions and our explanatory variables. To investigate the Granger causal relationship between, the Vector Error Correction Model was employed and our results, associated the absence of Granger causality between emissions and economic growth in the short-run while revealing a unidirectional Granger causality movement from economic growth to emissions in the long-run. Hence, an increase in will lead to a rise in emissions in Malaysia.

On the relationship between energy consumption, CO 2 emissions and economic growth in Europe

Energy, 2010

This study examines the causal relationship between carbon dioxide emissions, energy consumption, and economic growth by using autoregressive distributed lag (ARDL) bounds testing approach of cointegration for nineteen European countries. The bounds F-test for cointegration test yields evidence of a long-run relationship between carbon emissions per capita, energy consumption per capita, real gross domestic product (GDP) per capita and the square of per capita real GDP only for Denmark, Germany, Greece, Iceland, Italy, Portugal and Switzerland. The cumulative sum and cumulative sum of squares tests also show that the estimated parameters are stable for the sample period.

The driving factors of CO2 emissions from electricity generation in Greece: an index decomposition analysis

International Journal of Global Warming, 2017

The present paper investigates the driving factors of CO 2 emissions from electricity generation in Greece during the period 2005-2012 and compares the revealed trends with those recorded in EU-28. The analysis focuses on the following determinant factors: a) economic growth; b) electricity intensity of the economy; c) electricity trade; d) fuel mix; e) efficiency of electricity generation. By using a decomposition analysis based on the Logarithmic Mean Divisia Index-I (LMDI-I) method, the effect of each factor is calculated under the ceteris paribus assumption. The obtained results show that in times of economic growth, changes in the fuel mix and the more efficient use of electricity in the economy have retained the upward trend of emissions, while the economic downturn has driven emissions down but at the same time it contributed to a less efficient use of energy resources in power generation and in the final demand sectors.

Energy Consumption, CO 2 Emissions and Economic Growth Nexus in Oman: Evidence from ARDL Approach to Cointegration and Causality Analysis

European Journal of Social Sciences, 2020

The paper examines the nexus between economic growth, energy consumption and carbon dioxide emission (CO 2) in Oman from 1980 to 2018. The study uses ARDL bounds, Johansen Cointegration and the Granger-causality tests. The bound test as well as the Johansen Cointegration test both reveals an existence of long-run relationship between CO 2 emissions and its determinants. This long relationship indicates that CO 2 in Oman is positively influenced by economic growth and energy consumption. The analysis also suggested that in the short run; approximately 15.1 per cent of total disequilibrium in CO 2 emissions has being corrected each year. Moreover, Granger causality analysis indicated that there is a unidirectional causality running from each of the energy consumption (EC) and GDP per capita (economic growth) CO 2 emissions. Based on the results obtained, the policy makers can formulate strict environmental and energy policies for the sake of reducing CO 2 emissions.

An analysis of the association among carbon dioxide emissions, energy consumption and economic performance: an econometric model

Carbon Management, 2018

This work is intended to present an investigation into the macroeconomic reasons for carbon dioxide emissions in Pakistan for the period 1971-2016. This study adds to the current empirical literature on the association among carbon dioxide emissions, energy consumption, economic growth and the level of investment in Pakistan. The data has been checked for its stationarity by applying the augmented Dickey-Fuller (ADF) unit root test, and then a cointegration test helped in the estimation of long-run equilibrium association between environmental variables. The outcomes of the co-integration test suggest the presence of a long-run equilibrium connection between series. The results of Vector Error Correction Model (VECM) demonstrate that all variables transform to sustain long-run equilibrium. The outcomes of a Granger causality test showed that causality runs from economic performance and population toward CO 2 emissions, while bi-directional causality is found between carbon dioxide emissions and energy usage, and carbon dioxide emissions and trade openness. The results of cumulative sum of recursive residuals (CUSUM) and cumulative sum of recursive residuals squares (CUSUMSQ) show the stability of the functional relationship established in the present work, which implies that this model is an adequate and useful tool for strategy formulation. So, an upsurge or a decrease in macroeconomic series will cause and has caused variations in carbon dioxide emissions in the long run in Pakistan.